For historic reasons, Berlin is divided geographically by east and west. In addition, Berlin is composed of several districts that have grown together into a unified whole over time. Each district – called a Kiez in German – has preserved its own centre and its own individual character.

There is an historical explanation for this: In the 1920s a collection of small municipalities was merged and the city of Berlin was formed. Before that, all municipalities had their own town halls and rules.

Berlin is very large and may seem overwhelming for a first-time visitor. A good way to explore the city is to approach it district by district.

Below are brief descriptions of the most popular districts:

Mitte

Mitte is the heart of unified Berlin, just as it was before World War II. After the war, the district lay in ruins and was later divided. Mitte hosts the most and the best clubs, bars and restaurants, including American coffee bars and trendy brand shops. Alexanderplatz, the restored parliament house and the Brandenburg Gate are located in Mitte.

The area around Alexanderplatz was the centre of former East Berlin. Construction activity is enormous in this area, including plans for both housing and retail.

Kreuzberg

Kreuzberg is the most multicultural district in Berlin and a part of the former West Berlin. One third of Kreuzberg’s inhabitants are non-German citizens, mostly Turks. Before the wall came down, this was the centre of West Berlin’s alternative culture, and was occupied by squatters and revolutionary romantics. Now it feels more like walking around in a happy meeting between the Orient and the bourgeois architecture of the 1800s. Here you will find the best kebab, and Bergman Strasse is teeming with bars and second-hand shops. This street is probably one of the most beautiful in Berlin. You can also stroll along the Paul-Linke-Ufer River, which splits the district in two.

Kreuzberg is full of contrasts and both the atmosphere and quality vary enormously.

Prenzlauer Berg

Prenzlauer Berg is still Berlin’s busiest district, though it’s perhaps not as hip as it was 10-15 years ago. In the years directly after the wall came down, this was the most sought after district. The rent was low and the district was young and trendy, teeming with students, artists, punks and German shepherds. The old tenements largely reflect a bygone era, with vast neighbourhoods of house after house on wide avenues.

Despite the small parks that are scattered here and there, nature feels quite distant. Instead, the area is filled with exciting bars, restaurants and shops.

The area has been redeveloped and the beautiful old buildings heavily influence the atmosphere. It is still fashionable to live in Prenzlauer Berg, and the district is especially attractive to students and young families.

Many of the artist types who moved here in the early 1990s believe that Penzlauer Berg has become too middle class and costly, so they have moved further south to Friedrichshain.

Friedrichshain

Friedrichshain has taken over the title as the most alternative district in Berlin. In the neighbourhood around Rigaer Strasse, there are a number of punks and graffiti-painted houses. Half of all the buildings in Friedrichshain were destroyed by bombs during the Second World War, and the district has not recovered completely. There are still empty lots, and when you walk around it sometimes feels as though the war was much more recent 60 years ago. Karl Marx Alle, the Stalin-era pedestrian street, passes through Friedrichshain before changing its name to Frankfurter Alle further east.

In this area, many of the beautiful period buildings (altbau) have been reconstructed. The area is developing rapidly and is attractive to both investors and holiday home customers.

Charlottenburg

Charlottenburg was the centre of West Berlin during the nearly 30 years that the wall divided the city. Here you’ll find Kurfürstendamm, the main shopping street, and the luxurious department store KaDeWe. The upper middle class inhabit the affluent residential area north of Berlin’s Kurfürstendamm in beautifully preserved houses from the turn of the century. The district is named after Schloss Charlottenburg, King Friedrich’s wife Sophie Charlotte’s summer residence.

The area is one of the most popular for both holiday home customers and investors.

Schöneberg

Schöneberg is perhaps best known as the location where U.S. President John F. Kennedy said the legendary words “Ich bin ein Berliner” from the balcony of the city hall. This is also where David Bowie lived when he moved from Bel Air in California to “the last avant-garde outpost,” as he called divided Berlin. Schöneberg is also the traditional LGBT district in Berlin and has been since the 1920s. It is where Karin Boye made her home during her Berlin stay in the 1930s. The most LGBT-friendly establishments are located around Nollendorfplatz.

Potsdamer Platz

Midway between Alexanderplatz in the east and the Bahnhof Zoo in the west, lies the rebuilt retail and office space around Potsdamer Platz. The area was bombed during World War II and was then a deserted area between East and West until the fall of the wall. With its newly built skyscrapers, Potsdamer Platz now gives Berlin a skyline that is worthy of New York – or at least worthy of Frankfurt. The district includes a great deal of steel, glass and concrete, making it very futuristic and quite impersonal – but still fascinating.

In this area you will find Berlin’s most expensive prices by square metre.

General considerations

Berlin is a city of contrasts, offering something for people of all types and ages. The city is largely characterized by strong development so most areas will develop in a positive direction. This redevelopment activity and improvement is most apparent in the former East Berlin. Development started near Potsdamer Platz, in Mitte and in Prenzlauer Berg. Mitte and Penzlauer Berg especially, are still under rapid urban development. The development spreads naturally, layer by layer, spreading towards Berlin’s borders.

There are many investment opportunities in Berlin. There is room for all types of people and a market for virtually anything. It is obviously difficult to predict the future and say with certainty which areas will evolve and how. However, a visit to Berlin could help you get a feel for the different districts and help you decide which area is the best personal match for your investment.