The latest market report from the Micro-Living Initiative, based on an analysis of numerous apartment buildings, confirms a consistently high demand for flexible housing formats. As of 15 April 2026, the average all-inclusive rent in the properties surveyed was EUR 616 per month, representing an increase of 2.8 per cent compared to the previous year. When considering privately operated apartment buildings, adjusted for portfolios of municipal housing companies, the average all-inclusive rent amounted to EUR 761 per month.
André Adami, Head of Residential at bulwiengesa, commented on the development, emphasising the persistently high demand for micro-apartments. An occupancy rate of 96 per cent illustrates the urgent need for flexible and professionally managed housing options. At the same time, there is a discernible trend towards larger apartment types and an increased focus on diverse target groups, including young professionals, commuters, and singles. The current study draws on data from 121 apartment buildings with approximately 27,400 units and a total area of around 687,350 square metres, thus forming a representative market panel.
Over 70 per cent of the recorded apartment buildings are located in German A-cities. In addition to stable demand, rising energy and operating costs, as well as general cost developments, continue to influence rent levels. Around 80 per cent of surveyed market participants intend to pass on additional ancillary costs completely to tenants in new tenancies. Lena Schwesinger, Real Estate Consultant at bulwiengesa, explained that high housing demand combined with rising management and maintenance costs is a decisive factor for the continuous rental price development in this segment. She added that modern apartment buildings with comprehensive service and communal amenities, as well as digital solutions, are increasingly sought after, with these quality requirements being reflected in the rent level.
The rental price level shows a clear dependence on location and property quality. In privately operated apartment buildings, monthly all-inclusive rents range between approximately EUR 450 and EUR 1,620. On a per-square-metre basis, the range varies between EUR 18.00 and EUR 48.30. For the first time, the current report also analysed fluctuation within the segment. The average fluctuation rate is 31 per cent. Particularly low fluctuation rates of an average of 28 per cent are observed in the strained housing markets of A-cities, while D-cities and other cities show higher values of around 45 per cent each.
Market participants are optimistic about the coming years and expect annual rent increases of between 2 and 6 per cent for the period from 2026 to 2028. Letting proves to be differentiated: while German and European students are comparatively easy to reach, marketing to international target groups outside Europe requires considerably more effort, according to market participants. A particular challenge is also the letting of high-priced apartments. As of the survey date, 34 per cent of the rented apartments were occupied by students. The remaining 66 per cent are primarily used by singles, young professionals, and commuters.
