The 150,000 sq ft manufacturing facility and a 15,500 sq ft office building will sit on a ten-acre site in Northfleet and produce up to 1,000 properties a year.
It will produce finished modules complete with plumbing, electrics, and internal finishing, including flooring and fittings that can be configured to form new homes.
Around 240 people will be employed at the new factory.
Tony Pidgley, chairman of the Berkeley Group, said: “Given the skill shortages we are facing, speed of production and the impact on labour are vital issues for the future of our industry.
“But the real driver for Berkeley is the quality we can achieve with modular housing.
“It will help us create fantastic homes for our customers where they can live comfortably in a beautiful setting.
“That is what will really drive demand and create value for our business, as well as build fantastic communities for people in the future.”
The site, in Northfleet East, is in the North Kent Enterprise Zone and Berkeley becomes the first company to locate within it at Ebbsfleet Garden City.
The planning committee recently approved plans for 600 new homes in Northfleet East by Keepmoat in a scheme that will transform that area along the River Thames.