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Market analysis··2 min read

Berlin office market: High willingness to relocate shapes inner-city location decisions

According to a recent survey, almost three in ten Berlin companies are planning to relocate within the next 18 months, yet the vast majority remain loyal to the capital.

AI generatedBerlin office market: High willingness to relocate shapes inner-city location decisions – AI-generated illustrative image
Berlin office market: High willingness to relocate shapes inner-city location decisions. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

Compared nationwide, companies in Berlin show an above-average willingness to relocate. According to a survey conducted by Hamburg institute Trend Research on behalf of GSG Berlin, nearly three in ten companies based in the capital are planning a relocation within the next 18 months. In other major German cities, comparative figures are lower, with Cologne displaying particularly pronounced downward deviations.

Despite pronounced relocation plans, loyalty to the city remains strong: around eight in ten businesses willing to move intend to choose their next company headquarters within Berlin. The Mitte district dominates as the preferred target area, followed by Charlottenburg-Wilmersdorf and Friedrichshain-Kreuzberg. In this context, Sebastian Blecke, Chief Operating Officer of GSG Berlin, stresses that the survey does not show any outward migration from the federal capital, but rather reflects increased movement within city boundaries.

Shifts between Berlin submarkets

Alongside the survey, a special evaluation by the Berlin-Brandenburg Statistical Office highlights shifting trends at borough level. For Charlottenburg-Wilmersdorf, a comparison of the first half-years of 2024 and 2026 reveals a noticeable slowdown in start-up and inbound relocation activity. The number of newly founded businesses fell in this period from 2,164 to 1,400 firms, while inbound relocations dropped from 136 to 55 companies. The traditionally strong real estate and housing sector has been particularly affected: here, new company formations decreased from 100 to 63, and inbound moves fell from 42 to just 7 companies.

While City West remains sought after as a target district according to Blecke, though needing to actively work on its positioning, other inner-city locations recorded more robust development. In Mitte, Pankow and Friedrichshain-Kreuzberg, the number of commercial start-ups rose in the first half of 2026 compared to the same period in 2024.

Changing space requirements driven by working from home and technology

Alongside location choice, qualitative requirements for commercial space are also undergoing structural change. Numerous market participants expect space-relevant adjustments by 2031 as a result of mobile working, spatial densification, modified space concepts and the use of artificial intelligence. Around eight in ten companies forecasting changes due to working from home or altered spatial layouts also anticipate AI-driven impacts on their office requirements.

  • —Nearly 30 per cent of Berlin companies are planning to relocate within 18 months.
  • —Around 80 per cent of businesses willing to move will remain within Berlin city boundaries.
  • —Charlottenburg-Wilmersdorf recorded a decline in new business formations from 2,164 to 1,400 in the half-year comparison.
  • —In Mitte, Pankow and Friedrichshain-Kreuzberg, business start-up volume increased over the same period.

According to GSG Berlin, the traditional office is not fundamentally losing its importance, yet companies increasingly demand flexible floor plans, convenient transport links and measurable added value compared to working from home. Future location decisions will therefore be guided more heavily by space efficiency, mixed use and the structural adaptability of existing commercial properties.

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