New law strengthens real estate communities: upgrading for Reinickendorf!

New law strengthens real estate communities: upgrading for Reinickendorf!

Berlin, Deutschland - On June 19, 2025, the State of Berlin created important legal foundations for real estate and location communities (ISG). These new regulations enable owners to set up ISGs on their own initiative in order to increase the attractiveness of their locations. The measures can be planned within a clearly defined geographical area, with the aim of improving the situation of retail, service and businesses. The financing is carried out by contributions from the resident landowners, which are calculated based on the size of the property and the number of floors. This is intended to promote sustainable economic development that also helps reduce vacancies.

In order to create an ISG, an application to the responsible district office is required, whereby the approval of 15 percent of the owners is necessary. The Senate Department for Urban Development, Building and Living has also published a practical guide that explains the conditions and the procedure for interested parties. District Mayor Emine Demirbüken-Wegner (CDU) is very supportive towards this initiative and plans information events for owners and entrepreneurs to make the possibilities and advantages of ISGS known.

Promotion of private initiatives

The new version of § 171 f BauGB strengthens private initiatives for urban development. As a result, state regulations can define areas in which private measures for upgrading urban areas can be carried out. This does not only affect city centers or district centers, but can also be extended to residential areas and commercial areas. Private initiatives such as Business Improvement Districts (BIDS) and ISGS are examples of such measures and can react flexibly to local needs to increase the attractiveness of district centers.

An essential element is that the financing of these initiatives is secured by mandatory contributions from all property owners within the respective BID or ISGS. The application to set up these areas also requires the consent of a certain minimum number of owners who have to submit a transparent financing plan. Owners also have the right to object to the establishment of a BID.

ISGS as an instrument of inner city development

real estate and location communities have established themselves as an important instrument of inner city development. The first BID in Hamburg was launched in Germany, and the concept has found imitators in many other cities since then. The Berlin law for the introduction of ISGS is a central component that offers the owners a legal framework for sustainable improvement and upgrading their environment. The aim is not only to upgrade business roads, but also a general improvement in the quality of stay and economic attractiveness in the affected areas.

With the support of the districts and the clear legal regulation, real estate and location communities are intended to help strengthen the economic structure of Berlin and to promote civil initiatives for urban development. The websites of the corresponding Senate administrations are available for further information and application forms.