Berlin is a beautiful city. It is also quite trendy, quirky, and unique. Whether you were moved to Berlin by your employer or chose to move to this city, you should have a general understanding of the economy in your new hometown.
When living in the city of Berlin, you will notice the trendy, artistic, and business lifestyles that dominate the city. Berlin attracts many people, especially tourists, young graduates and university students, and those in the IT and Internet industries. There is a reason for this and it correlates with the economic boom in the city of Berlin in Germany.
Tourism is where the spike in the economy begins. Many are choosing to visit the beautiful and trendy city. Increased tourism has generated more jobs and put more money into circulation in the city. That influx of money has also created an increase in average wage earnings in the city. Another benefit of tourism in Berlin is the high amount of visitors who fall in love with the city and choose to stay and build their lives there. This has also created a boom in Berlin’s population, despite the rest of Germany’s stagnant population.
Berlin’s attraction seems to appeal heavily to the younger generation and those in the IT and Internet industries. Because of this, there has been an increase in internet start-ups in the city of Berlin. These high-earning industries are also contributing heavily to the economy in Berlin. There have also been many larger, well-established Internet companies that have made their way into Berlin and set up there, creating another source for Berlin’s growing economy.
Downfalls of Economic Growth
One of the more obvious downfalls of economic growth in any city is the increase in real estate prices. Berlin has become a very trendy city, and with the increase in wealthy residents comes an increase in new and renovated expensive apartments and housing. While that may not be much of an issue to those thriving in the city, it has become a problem for established locals. Many of the locals who earn an average to lower income are being pushed out of the heart of the city by the wealthier population and into the lower income outskirts, and even out into nearby cities and towns. This push is also increasing the gap between the wealthy and the poor, as the lower income inhabitants can afford less and less with the city’s increasing prices.
So, if upon your move to the Berlin area, you are wondering why rent prices are so high, this breakdown should give you an idea. If your job does not pay well enough to live in the heart of the city, then rest assured that you always have the option of living in one of the nearby cities or towns. Do a little bit of research and compare how much it would cost you monthly to live in the city, versus outside of the city with a commute. Oftentimes, the commute turns out to not be too large an impact on you financially in comparison to living in a bustling and wealthy city.