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Berlin construction rises but fails to keep pace with population growth

More than two decades after the fall of the Berlin Wall, the long-awaited post-reunification growth is finally happening in Berlin, with 50,000 people reportedly moving to the German city last year and another 250,000 forecast to arrive by 2030.

While the State Statistics Office has not yet compiled the final figures on how the population developed in 2013, in the past few years at least 40,000 people having been moving to the city each year and the numbers have been increasing steadily since 2005.

Berlin will have a population of 3.75m by 2030 and around half of all new arrivals each year are non-Germans, with many coming from countries like Spain, Poland, Canada and Australia.

Building is now an urgent necessity to meet rising demand for everything from inexpensive rentals to luxury condominiums. Aided by low interest rates, private construction companies have steadily increased their output in the past five years and completed 6,000 apartments in 2013, according to data compiled by research firm Bulwiengesa AG. That was the most in 14 years but is still well below what is required.

Berlin needs to build 10-12,000 housing units every year to keep up with its growing population. Since 2005, the number of people living in Berlin has risen 3% to 3.4m and the city’s government expects 7% more residents by 2030.

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