Student housing in Germany: the real estate market that is skyrocketing

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Transactions in student housing in Germany are expected to reach € 1.5 billion this year

This is in contrast to five years ago, when the market consisted of only 250 million euros in transactions. Experts say that this market segment has recently become “luxurious”.

However, the housing market for students varies greatly from city to city within Germany. And the supply of apartments is into pieces. And further ranges from apartments with several rooms in which students choose to share. It also include single flats or micro-apartments in ad-hoc large complexes.

Students are experiencing the modest supply of student housing and the rising price in the cities of Germany’s major universities. In popular cities like Berlin, Frankfurt, Hamburg and Munich residential prices are high and continue to rise at a dizzying pace.

In Berlin, for instance, prices rose by 39% between 2011 and 2018. The rents in the different cities in Germany is varying significantly. For example, in Berlin, renting a room in a shared flat as of 2018 will cost an average of € 363 per month. An increase of 6% compared to the previous year. Berlin is still relatively cheap compared to other cities where most students come.

Student housing in Germany

At the other end of the spectrum is Munich with a rent of about 616 a month in a room in a shared apartment, Stuttgart with monthly rent of about 485 euros and 410 euros in Hamburg.

With increases both in demand and in prices, the real estate market in Germany adapts itself. Real estate companies plan to build more housing units for students. And not only: micro-apartments are in plan of construction in large complexes for young professionals as well.

However, the rent increase is not sustainable in the long term. Prices will have to align according to the German Mietspiegel. But for the time being, the idea of affordable student housing sounds to most students in Germany as something completely unrealistic.