After the fall of the Wall, Prenzlauer Berg became the largest urban renewal zone in Europe. 90% of the total of 32,000 apartments were in need of modernization.
In the area around Helmholtzplatz, the houses were particularly dilapidated. During the years of the GDR, the old buildings had been neglected for decades. The plans to improve housing conditions failed due to the limitations of GDR economic policy. As a result, many residents of Prenzlauer Berg moved to the newly developed Plattenbau housing on the outskirts of East Berlin. The vacancy attracted artists and non-conformists. In many cases, unused apartments were occupied. In 1990, Prenzlauer Berg was home to a mixed, mostly low-income population.
After the fall of the Wall, rent increases, repossession of houses, and investor activities led to uncertainty and resistance among the population. Between 1993 and 1995, the Berlin Senate designated five redevelopment areas in Prenzlauer Berg, including the area around Helmholtzplatz. The model for redevelopment was the same “cautious urban renewal” carried out in Kreuzberg in the 1980s. It followed the principles of improving the structure of the buildings as well as preserving residential diversity.
The Helmholtzplatz renewal was lifted at the beginning of 2015, by which time 82% of apartments had been refurbished. Around one third of all apartments were converted into property. In 2021, young people and middle- to high-income families made up a vast majority of residents. The area serves as a case study to urban sociologists of extensive residential displacement.
