Germany's student housing market sees significant growth

The German market for Purpose-Built Student Accommodation (PBSA) is experiencing significant growth and professionalization. According to a JLL study, transaction volumes in the first half of 2026 reached approximately 200 million euros. Furthermore, asset deals worth about 400 million euros and portfolio transactions totaling roughly two billion euros are currently in advanced negotiations.

If these deals are finalized, total volumes could surpass the previous decade's levels, which were sometimes below one billion euros. In seven major metropolitan areas, average monthly rents stand at 988 euros. PBSA properties command a premium of 200 to 400 euros over traditional shared apartments (WGs) by offering amenities such as gyms, media rooms, and on-site support. Initial yields for high-quality properties have stabilized between 4.1 and 4.4 percent.

Growth is primarily driven by the increasing number of international students. In the 2025/2026 winter semester, the total number of students in Germany reached a record high of 2.88 million. International students, who now make up 30 percent of all first-year students, represent a major demand driver as they often require immediate, furnished, all-inclusive housing solutions.