What if a city allowed a huge regeneration project to be led, not by the wealthiest property developer, but by the club owners ...

For the first decade of the 21st century, the industrial wasteland between Berlin’s Ostbahnhof station and the river Spree was earmarked for a huge urban regeneration project – one that would show that the German capital could keep up with London and New York. Where flowing water had once marked the divide between communist and capitalist spheres of influence were to be a phalanx of high-rise blocks made of shiny glass, some of them 80 metres tall, containing luxury apartments, hotels and offices.

But tomorrow, that same 12,000mpatch of land will open with an altogether different look: an urban village made of recycled windows, secondhand bricks and scrap wood, containing among other things a studio for circus acrobats, a children’s theatre, a cake shop and a nursery where parents can drop off their children while they go clubbing next door. There’s even a landing stage for beavers.

The Holzmarkt development is the result of an unprecedented experiment in a major world capital: what if a city allowed a new quarter to be built not by the highest bidding property developers or the urban planners with the highest accolades, but the nightclub owners who put on the best parties in town?

The Pampa beach bar at the Holzmarkt site in 2015.
The Pampa beach bar at the Holzmarkt site in 2015. © Christian Jungeblodt for the Guardian

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In a village with four entrances and no gates, that attitude could pose a potential problem. The nearby RAW complex – another jumble of derelict buildings turned creative hub and party mile – has in recent years begun to draw stag-dos and tourists, who in turn have attracted drug dealers and pickpockets.

Holzmarkt’s management are not planning advertise or market the development in a conventional way – word of mouth, they hope, will act as a natural filter for the kind of people their experiment attracts. The village’s layout may also act as a natural barrier to it being overrun: without a central thoroughfare and only a meandering cycling path along the river, it’s the kind of place you can amble around but not race through.

The challenge in the first few months will be whether Holzmarkt can recreate the Bar25 experience without bringing in a bouncer or some sort of village police. If their experiment succeeds, they could achieve something that Berlin under the old SpreeUrban plans would have never even imagined: not to catch up with London and New York, but to build a new model for other major cities to follow.

“Everyone is welcome, but of course we hope that people show some respect,” said Dieziger. Over the years, even Berlin’s veteran hedonists have learned to appreciate that excess is defined by limits. The people living in the apartments across the river from their club had his personal mobile number, he said. That way they didn’t have to call the police when the music got too loud.