Fewer upcoming residential developments in Berlin
In a recent analysis, Berlin Partner for Economic Development, the city's economic development agency, has revealed some interesting trends in company settlements in Berlin over the past few years.
While the agency's search results do not provide a detailed explanation about the factors that led to a decrease in company settlements supported by Berlin Partner for Economic Development in the first half of 2021 compared to the previous year, several factors might have contributed to this shift. These include economic downturns or uncertainty reducing business investment and relocations, changes in government policies or incentives affecting company settlement decisions, the impacts of the COVID-19 pandemic on business operations and expansion plans, increased competition from other regions or countries for company investments, and shifts in industry trends that alter demand for business location support. Without specific data or statements from Berlin Partner or related sources, the precise reasons for the decrease in company settlements in early 2021 remain unclear.
Fast forward to 2025, and the picture appears to be more positive. In the first half of that year, Berlin Partner supported 48 new companies to settle in the capital, an investment of approximately 668 million euros. This is around 18 million euros more than in the same period last year. Interestingly, half of these projects were from Germany, with four from the United States and three from the United Kingdom.
However, a closer look at the data reveals some changes in the focus of investments. The total amount invested in research and development decreased in the first half of 2025, with investments amounting to around 67 million euros, down from nearly 100 million euros in the first half of 2024. This suggests a possible shift in priorities for the companies supported by Berlin Partner.
In addition to supporting company relocations and new formations, Berlin Partner also provides advice and support for companies in their development in Berlin. This holistic approach aims to foster a vibrant and dynamic business environment in the city.
While the reasons for the fluctuations in company settlements in 2021 remain unclear, the trends in 2025 provide a promising outlook for Berlin's economic development. With continued support from Berlin Partner and a conducive business environment, Berlin is poised to attract more companies and investments in the future.
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