Despite the persistently challenging economic environment, Berlin’s economy is showing clear signs of growth. The Investitionsbank Berlin (IBB) expects Berlin’s gross domestic product to rise by 1.5 percent in 2026. At the same time, exports grew particularly strongly in the first half of the year: They rose by 8.6 percent compared to the same period last year, reaching 9.8 billion euros. The construction industry is also showing positive signs. As the “Berliner Wirtschaft” reported last week, citing the IBB’s latest “Berlin Trend” report, new orders in Berlin’s construction sector rose by 41 percent in the first half of 2026 compared to the same period last year. Growth was particularly strong in residential construction, at 55 percent.
The service sector remains a key pillar of Berlin’s economy. From January through May 2026, revenue in business-related services was 2.3 percent higher than in the same period the previous year. This continues the broadly positive trend in a sector of particular importance to Berlin, given the city’s strongly service-oriented economy. At the same time, conditions in the industrial sector have improved. Industrial sales rose by 9.0 percent in the first half of the year, while new orders in the manufacturing sector increased by 10.7 percent. Orders from abroad rose by 15.0 percent.
This trend is now clearly reflected in Berlin’s foreign trade. According to preliminary calculations by the Berlin-Brandenburg Statistical Office, Berlin-based companies exported goods worth 9.8 billion euros in the first half of 2026, an increase of 8.6 percent compared to the same period a year earlier. Trade with EU member states showed particularly strong growth, with goods worth 5.2 billion euros shipped to these countries—an increase of 12.1 percent. Exports to France rose by as much as 44.8 percent to 976 million euros. Exports to the United States also performed strongly, rising by 14.2 percent to 838 million euros.
Key growth drivers include industries that play a particularly important role in Berlin’s modern, technology-oriented economic structure. Exports of data processing equipment and electronic products rose by 26.0 percent to 1.2 billion euros, while pharmaceutical exports increased by 18.7 percent to approximately one billion euros. Although machinery remained the largest product group by value, with an export volume of 1.4 billion euros, it recorded a decline of 7.8 percent. Overall, these figures underscore the broad international reach of Berlin’s economy.
For the real estate industry, developments in the primary construction sector are of particular interest. In the first half of the year, new orders in this sector rose by 41 percent year on year. Residential construction showed even stronger growth, with a 55 percent increase, while commercial construction saw a 38.4 percent rise in new orders and public construction a 40.3 percent increase. However, the increase in new orders has not yet translated into a corresponding revenue growth: Revenue in the main construction sector was still 9.6 percent below the previous year’s level in the first half of the year, while residential construction saw a decline of 7.9 percent. However, the rise in new orders suggests that activity could pick up in the coming months.
“The latest economic data is an encouraging sign for Berlin and, by extension, its real estate market. A growing economy, rising exports, and—in particular—the sharp rise in new residential construction orders show that the city is regaining momentum,” says Jacopo Mingazzini, CEO of The Grounds. “It will now be crucial to support this development through a reliable economic policy framework and faster planning and approval processes. Berlin remains an attractive place to do business and living with strong long-term prospects. Positive economic development provides an important foundation for this.”
