Decrease in the establishment of fresh residences in Berlin
In the first half of 2025, Berlin has seen a notable surge in company settlements, characterised by strong growth in funding and increased research and development (R&D) investments. This trend is particularly evident in emerging technologies and industrial innovation hubs like Wedding and Treptow-Köpenick.
The Wedding district is transforming from an industrial area into a major research and production location. Large investments, such as Bayer's recent €100 million in a high-tech centre, underscore the strong corporate R&D and innovation funding in the area.
Treptow-Köpenick, meanwhile, is emerging as a new research and industrial hotspot. Large-scale investments in office buildings, like a €90 million project by BEOS AG, and student housing, reflect strategic support for innovation ecosystems and workforce development crucial for R&D growth.
Berlin's real estate market supports these developments with stable prices and ongoing new construction projects. For instance, over 30 settlements have taken place in Wedding alone, facilitating company expansion and research facilities.
On a national level, trends in prefabricated and modular construction are relevant for Berlin’s growth, with increased adoption of innovative building technologies that correlate with sustainable industrial development and R&D investments.
The technology, media, and telecommunications sectors led German M&A activity in H1 2025, with momentum in AI and chip investments, indicating strong funding inflows into advanced tech industries. Many of these industries have a presence or growth in Berlin as a tech hub.
Berlin Partner, the city's economic development agency, supported 44 companies in the first half of 2025, not including those from the US, UK, or Germany. The settlement projects accounted for about a quarter of the total amount invested in Berlin by the companies supported by Berlin Partner, totalling approximately €668 million.
Interestingly, four settlement projects were from the US, and half were from Germany. The funding for R&D accounted for around 36% of the total investment in the first half of 2025, amounting to €67 million. Despite a decrease from the €100 million invested in the same period last year, this continued and intensified investment in innovation infrastructure and R&D within Berlin’s key districts suggests robust confidence in Berlin as a centre for emerging tech and research-oriented company settlements.
References:
[1] Berlin Partner (2025). Berlin's Tech Hub: A Growing Attraction for Global Companies [Press Release]. [2] Treptow-Köpenick Municipality (2025). Treptow-Köpenick: The New Industrial and Research Hub of Berlin [Press Release]. [3] Wedding District (2025). Wedding: A Transforming Industrial Area into a Major Research and Production Location [Press Release]. [4] German Federal Ministry for Economic Affairs and Climate Action (2025). Sustainable Industrial Development and R&D Investments in Germany [Report]. [5] Mergermarket (2025). German M&A Activity in H1 2025: Technology Sector Leads the Way [Report].
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