Berlin’s Investment Landscape: A Shifting Focus
Berlin’s economy witnessed a robust first half of 2026, with companies injecting approximately 1.4 billion Euros into the capital. This figure represents a substantial increase, more than doubling the investments made in the same period last year. The primary drivers behind this surge are expansions by established corporations such as Google, ASML, and Mercedes, as reported by the economic development agency Berlin Partner.
Fewer New Settlements, More Expansions
Despite the impressive investment figures, the city saw a slight dip in new company settlements, with 43 new businesses choosing Berlin as their base – a marginal decrease compared to the first half of the previous year. Half of these new ventures were German companies, while six originated from the USA, four from China, and three from Turkey. These projects collectively generated nearly 3,000 new job opportunities.
Berlin Remains a Startup Hub
Berlin continues to solidify its position as Germany’s leading startup hub. The first half of the year saw approximately 430 new startup formations, marking an increase of over 20% compared to the second half of the previous year. Berlin Partner highlighted that the city’s startup ecosystem boasts a total value of 169 billion Euros, encompassing around 1,600 venture capital-funded startups and hosting 32 ‘Unicorns’ – companies valued at a minimum of one billion US dollars.
Digital Transformation and Job Market Shifts
The record investments have predominantly flowed into digital sectors, including Artificial Intelligence (AI), robotics, and automation. While these advancements signify progress, they have also led to a noticeable loss of jobs in other industries. Berlin Partner noted that tasks such as logistics, accounting, human resources, customer service, and IT services are increasingly being replaced by AI or are being relocated abroad.
A prominent example of this trend is BASF’s service division. The chemical giant plans to downsize its Berlin operations and transfer positions to a newly planned global hub in India, affecting its finance, human resources, and global business services departments.
Berlin Partner’s Evolving Role
In response to these shifts, Berlin Partner is adapting its strategy. The economic development agency is increasingly focusing on assisting companies through this transformation, helping them explore new markets and industries, and ensuring job security and placement through its Talent Service initiative.
