How Berlin Compares to Global Capitals: Paris, London, Zurich & Tokyo

By Jose Longo

Berlin is often compared to other global capitals — but rarely with a data-driven, investment-focused lens.

Based on insights from the CBRE Berlin Housing Market Report, interviews with urban planners, and international case studies, Berlin reveals a unique competitive position in the global real estate landscape.

While cities like Tokyo, London, Paris, and Zurich have fully developed urban models, Berlin still sits at an earlier stage of transformation — offering more room for growth, lower entry prices, and substantial long-term upside.


Berlin vs Tokyo: Housing Flexibility & Zoning Potential

Tokyo is considered one of the most efficient urban models in the world — particularly in housing supply.

One of its key advantages: residential buildings are allowed in almost all urban zones.

In other words, Tokyo’s zoning policies promote housing construction rather than restricting it.

Berlin’s situation:

  • The city has similar legal potential, but
  • Has not yet fully activated zoning flexibility
  • This results in limited new development despite strong demand


Opportunity for investors:

Berlin still has vast untapped development capacity.

Districts near transit hubs, business centers, and university areas are especially undervalued.

These areas behave like Tokyo’s mixed-use zones — but are still priced like early-growth regions.


Berlin vs Zurich & Paris: Transit-Oriented Development (TOD)

Zurich-Altstetten, Grand Paris Express, and London Crossrail all demonstrate a global truth:

Transit drives real estate value.

Where mobility goes, investment flows.

Berlin example:

Ostkreuz is one of Germany’s largest transit nodes — serving hundreds of thousands of commuters daily.

Yet
 it remains underdeveloped as a residential and commercial hub.

Other global capitals would have built:

  • High-density housing
  • Office clusters
  • Retail hubs
  • Mixed-use vertical buildings
  • directly around such stations.


Opportunity for investors:

Berlin’s transit-centric districts are dramatically undervalued compared to global norms.

This creates significant value upside as the city continues to expand mobility infrastructure.


Berlin vs London & Hong Kong: Vertical City & Density Models

London, Hong Kong, and Singapore adopted the vertical city model decades ago:

  • Tall mixed-use towers
  • High-density urban cores
  • Transport-integrated construction

Berlin, by contrast, has maintained a “horizontal city” model, shaped by:

  • Height restrictions
  • Historical preservation
  • Local opposition to dense construction


Why this matters:

Berlin is one of the few global capitals that has NOT yet entered the vertical growth phase.

That means the density transition is still ahead — not behind.


Investor takeaway:

Pre-density markets often offer the highest returns because:

  • Prices are still low
  • Land is underutilized
  • Policy incentives (Faster Building Act) start supporting development

Berlin is entering this cycle now.


Demographics: Berlin’s Youth Advantage

Unlike many European cities experiencing aging populations, Berlin continues to attract:

  • Young professionals
  • International students
  • Start-up founders
  • Creatives
  • Skilled migrants

Cities with strong educational ecosystems — Berlin included — retain a cultural identity that supports long-term rental demand.

This demographic strength mirrors Tokyo and London, where youth inflows drive:

  • Rental demand
  • Urban renewal
  • Local business formation
  • Higher absorption rates for new housing


Investment insight:

A young population = a guaranteed rental market.

Berlin’s near-zero vacancy confirms this.


Affordability: Berlin’s Biggest Global Advantage

Despite rising popularity, Berlin remains far more affordable than other global capitals.

Compared to cities like:

  • London
  • Paris
  • Zurich
  • Tokyo

Berlin’s entry prices are significantly lower — yet demand is rising faster.


Investor takeaway:

Lower prices + higher demand = stronger ROI potential.

Berlin represents a rare mix of affordability and high absorption, something nearly nonexistent in other global capitals.


Conclusion: Berlin’s Global Position = Exceptional Upside for Investors

While other global capitals are fully built-out, Berlin is still transitioning into its mature phase.

This creates a once-in-a-generation opportunity for investors looking for:

  • Long-term appreciation
  • High rental stability
  • Low entry prices
  • Strong population growth
  • Market resilience


If London, Tokyo, Zurich, and Paris represent the “finished product,”

Berlin represents the opportunity to get in while the city is still transforming.