No other major German city saw rents for student apartments rise as sharply as Berlin. According to a study by the German Economic Institute (IW Cologne), asking rents in the small apartment segment increased by nearly 30 percent between 2010 and 2015.
Less supply, more demand
The study authors point to two main drivers: first, the number of young people and first-year students in Berlin kept growing. Second, the number of listed apartments in Berlin fell by more than a third between 2010 and 2015. More students competing for significantly fewer available apartments.
Berlin rents still below Munich and Hamburg
Despite the sharp increase, the average cold rent for a typical 30-square-meter student apartment in Berlin was 6.48 euros per square meter. The capital thus remained below the level of other university cities such as Munich or Hamburg, which had higher per-square-meter prices but lower growth rates.
Relevance for owners and investors
Rising demand for small apartments makes this segment attractive for investors. Demand remains high especially in areas close to universities and in boroughs popular with students, such as Neukoelln and Friedrichshain-Kreuzberg. Market data shows that the supply-demand imbalance has barely changed in the years since.
