Berlin remains a top destination for students – but affordable housing is increasingly scarce. Demand far exceeds supply, with public student residences offering rents between €400–560, while private options average €805 and hybrid models exceed €1,200.
Market Trends & Challenges
Average rent for shared flats: €637 and rising
New developments are shifting to outer districts
Lack of regulation in private sector
Low turnover in existing stock
Opportunities for Investors
Despite the challenges, the market offers strong potential:
Yield spreads compared to traditional residential assets are narrowing
Student housing accounts for just 1% of Germany’s transaction volume, but 16% across Europe
Institutional investors are increasingly recognising the segment’s stable cash flow
Student housing in Berlin is an underserved growth market with high demand and long-term potential. Early investment offers access to stable returns and social relevance.
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