I live in Berlin ( working as a front-end developer ) and that is correct. My rent is 700 Euro for a small flat in Mitte ( city center ) and yes, Berlin is a cheap city in terms of food, party, rent, etc. Anyway most of the people are not here to make money as far as I can see. Lots of hipsters and other people just join the city for it's special "culture / party / art" kind of spirit.