Berlin law to strengthen business roads: new initiatives ready for starting!

Berlin law to strengthen business roads: new initiatives ready for starting!

On December 19, 2024, the Berlin House of Representatives took an important step towards promoting the city's business centers with the new law to introduce real estate and location communities (BIG). The Senator for Urban Development, Building and Living, Christian Gaebler, as well as the senator for economy, energy and businesses, Franziska Giffey, have signed a comprehensive cooperation agreement together with the president of the Berlin Chamber of Commerce and Industry, Sebastian Stizel. This agreement aims to support local economic initiatives that are merging in specific business areas, to increase the attractiveness of their surroundings, such as berlin.de reported.

new law and its importance

The BIG offers a legal framework to create real estate and location communities, also known as Business Improvement District (BID). These communities have the opportunity to plan and carry out targeted measures for upgrading and revitalizing certain business zones. The discussions about these initiatives have shown that privately supported projects and partnerships are of great importance for the strengthening of Berlin. Giffey emphasized the opportunities for business development that the law opens, especially in times when inpatient trade is under pressure due to the Covid 19 pandemy. She ordered the upcoming challenges to the need to secure the city center and its attractiveness as a living and economic area, as can be seen from a guide to the Berlin ISG procedure, which was created in cooperation with various Senate administrations and the IHK Berlin. Details can be found in the document on Digital.zlb.de .

The new law stipulates that the initiatives have to go through the preparation, application and implementation phase in order to successfully found an ISG. As part of these measures, the relatives can take part in financially and thus gain a direct impact on the design of their environment. This innovative approach should not only upgrade the business roads, but also promote the local identity and the economic stability of Berlin. Particular attention is paid to the necessary financial resources in the law, the tax to be paid by the owners, which is based on the size of the property and the number of floors.