Urban development funding 2015: Five new designated areas in Berlin

Berlin's Senate has added five new areas to its urban development funding programs. Three fall under "Active Centres," two under "Urban Heritage Conservation." The funding draws on an increase in federal grants for municipal development that has been available since 2014.

Three areas in the "Active Centres" program

The funding targets shopping streets and local service hubs. Specifically, it covers Residenzstrasse in Reinickendorf, Dörpfeldstrasse in Adlershof (Treptow-Köpenick) and Bahnhofstrasse in Lichtenrade (Tempelhof-Schöneberg). All three locations are to be strengthened as neighbourhood centres with retail, services and public space.

Senator for Urban Development Andreas Geisel said the goal was to channel the additional funds into new neighbourhoods. He spoke of creating a "child- and family-friendly city" with "a high degree of social integration and a lively cultural scene."

Heritage conservation for Spandau Old Town and Karl-Marx-Allee

Spandau Old Town and the second construction phase of Karl-Marx-Allee in Mitte receive funding under the "Urban Heritage Conservation" program due to their architectural significance. Karl-Marx-Allee is about preserving post-war modernism, while Spandau Old Town focuses on the historic town centre.

What funding areas mean for the property market

Public investment in streets, squares, facades and green spaces changes locations over time. Experience from earlier funding programs shows that renovated neighbourhoods attract demand, and apartment prices in upgraded areas tend to develop more positively than in comparable areas without funding.

For owners in the five new areas, this can translate into higher rental income and rising property values. Investors looking at apartments in Berlin will find that Reinickendorf, Adlershof or Lichtenrade still offer more moderate entry prices than central locations.

The new funding areas are part of the Senate's broader strategy to develop not just central locations but also decentralised neighbourhood centres. If you follow the market development in Berlin, these five areas are worth watching over the coming years.