The heart of the city is again beginning to beat – and the momentum is coming from commit­ted citizens, friends and promoters of the state capital. Potsdam's urban development began with the Old Market (Alter Markt). The focal point was the Stadtschloss palace, which was destroyed during the Second World War. The Fortuna Portal of the palace has re-emerged here in all its glory, based on the original plans.

The Neuer Lustgarten, or pleasure ground, is again being developed as an event and sports complex. It is located opposite the Marstall royal stables in the Stadtschloss palace, right next door to the Weisse Flotte harbour basin, which now houses the Film Museum. The Stadtkanal, which was filled in during in the 1960s, has been partly cleared and evokes the city's reputation as the “Venice of the North”.

Among the most beautiful places in the city is the lavishly reconstructed Neuer Markt with the Ratswaage and the “House of Brandenburg-Prussian History” in the former coach house. Academic institutions, such as the Moses Mendelssohn Centre, the Einstein Forum and the German Kulturforum have their headquarters at the Neuer Markt.