In the German A-cities of Berlin, Hamburg, Munich, Cologne, Düsseldorf, Stuttgart, and Frankfurt am Main, there is a significant shortage of residential micro-apartments. The 'Micro-Living-Atlas 2026', a joint publication by BelForm GmbH & Co. KG and bulwiengesa GmbH, indicates a calculated supply gap of approximately 73,500 units in the six named cities. For Frankfurt am Main, an additional range of 400 to 4,700 missing apartments is stated. This figure surpasses the total number of about 60,500 apartments in 384 properties realised in these markets since 2010.
The presented supply gap is directly related to the high influx of people into the metropolitan areas. In 2024, the seven A-cities recorded a total of 591,469 arrivals. Especially individuals moving for a new job, vocational training, or studies urgently require ready-to-occupy, furnished, and temporary accommodation. In Berlin, for instance, seven out of ten new residents come from abroad, a group that particularly often demands furnished living.
Challenge in the Context of Skilled Labour Immigration
The necessity for appropriate housing is intensified by political efforts to attract skilled workers. The Institute for Employment Research estimates Germany's annual need to stabilise pension systems at 400,000 net immigrants. To consolidate and accelerate visas, recognition procedures, and labour migration from third countries, the federal government is establishing the Work-and-Stay agency from 2026. This led to the issuance of around 200,000 visas for labour migration in the first year of the new Skilled Immigration Act, although the question of initial accommodation for these individuals largely remains unresolved. Benjamin Oeckl, Managing Director of BelForm GmbH & Co. KG, emphasised that skilled workers only move to cities where they can find adequate housing, and pointed out the disparity between the actual demand for 73,500 additional apartments and the 60,500 units completed since 2010.
The bulwiengesa analysis included 540 micro-apartment and 355 serviced apartment projects in the seven A-cities, reflecting the existing stock since 2010 and the pipeline until 2030. Since 2010, 72,717 residential micro-apartments in 452 properties have been completed, showing an average occupancy rate of over 94 per cent. Nevertheless, completions in the micro-apartment sector decreased by approximately 50 per cent in 2025 compared to the previous year, and by about 40 per cent for serviced apartments. André Adami, Teamlead Consulting at bulwiengesa GmbH, attributed this decline to the rise in interest rates since 2022, the effects of which are becoming visible in completions with a time lag.
Regional Differences and Future Prospects
BelForm developed a demand model per city, based on communal arrival statistics from 2024, the market-active vacancy rate according to the 2022 census, and the private furnished housing supply. bulwiengesa validated the methodology and results. The supply gap in the six surveyed cities fluctuates between 53,000 and 129,000 apartments in various calculation scenarios, with the atlas showing a value of 73,500 in the lower third. Berlin exhibits the largest gap, due to the highest influx from abroad. Cologne has the thinnest stock with 64 apartments per 1,000 arrivals, while Frankfurt am Main is best supplied with 217 apartments per 1,000 arrivals.
- —Berlin: 30,400 missing apartments, coverage rate of demand at 47 per cent
- —Hamburg: 13,200 missing apartments, coverage rate 44 per cent
- —Munich: 11,700 missing apartments, coverage rate 49 per cent
- —Cologne: 8,400 missing apartments, coverage rate 32 per cent
- —Düsseldorf: 6,000 missing apartments, coverage rate 32 per cent
- —Stuttgart: 3,800 missing apartments, coverage rate 56 per cent
- —Frankfurt am Main: 400 to 4,700 missing apartments, coverage rate 72 to 97 per cent
By 2030, only approximately 13,500 additional apartments are expected to be completed in the six cities excluding Frankfurt, closing merely 18 per cent of the existing supply gap. The peak of completions is anticipated for 2028 with around 5,700 apartments, followed by a significant decline to under 1,000 units in 2030. In Berlin, the shortage will remain at around 23,000 apartments even until 2030. Benjamin Oeckl noted that the project pipeline significantly reduces after 2028, which could position new developments in a market with low competition, provided that location, product, and price are tailored to the target group.
An example of successful repositioning is provided by REAL I.S. with 'The Bloom Homes' in Berlin-Oberschöneweide. After acquiring an apartment building with 99 units and a 30 per cent vacancy rate in 2024, REAL I.S., in cooperation with BelForm, developed a new micro-living concept. Through redesigning the apartments, introducing communal areas and digital services, and repositioning under the mentioned brand, the occupancy rate increased to approximately 97 per cent within twelve months. This demonstrates that a target-group-specific concept can sustainably increase both profitability and property value.
