Apartment rentals have accelerated sharply since the pandemic ended, driven by growing demand for small-scale living options. Members of the Micro-Living initiative report an average occupancy rate of 95.6%, with all-inclusive rents stabilizing at €575 per month. Square-meter rents, however, have climbed €0.50 to €21.70/sqm as of October 15, 2023. According to Felix Embacher, Chief Executive at bulwiengesa: "Demand for compact living arrangements has surged noticeably. At nearly 96 percent, occupancy rates now even outpace pre-crisis levels. Yet most initiative members don't anticipate meaningful rent growth over the next three years—we've essentially reached the ceiling on pricing for now. To strengthen their business models, many are increasingly partnering with modular builders to lock in construction costs."

The eighth market report from the Micro-Living initiative analyzes operating data across 28,940 residential units in 129 apartment projects spanning multiple quality tiers. Nearly 60 percent of surveyed buildings remain concentrated in Germany's major A-cities. All-inclusive rents vary widely—ranging from €274 to €1,434 monthly—depending on property quality, location, and unit size. Premium-equipped buildings command roughly €740/month, while those with standard finishes average around €650/month.

Micro-living concepts—particularly premium-fitted options—are opening doors to increasingly diverse resident profiles. This shift is evident in the changing composition of student residents: when the initiative began tracking data in spring 2020, students represented 54 percent of occupants; that figure has dropped to 37 percent. The persistently high interest rate environment has frozen the transaction market since mid-2022, with 2023 seeing virtually no activity. For the first time, initiative members were surveyed on acceptable gross purchase multiples for acquiring new, fully-leased apartment buildings in prime locations. Expert responses ranged from 18 to 23 times gross multipliers, with 20 to 22 times cited most frequently. About the Micro-Living Initiative (IML:

Established in spring 2020, the Micro-Living Initiative (IML) serves as a platform for owners, operators, and managers of apartment buildings. It unites Germany's largest and most innovative residential apartment sector players with a shared mission: bringing greater transparency to this emerging market segment. The IML currently comprises 15 member companies active in Germany's apartment market. Any professional owner, operator, or manager of residential apartment buildings is welcome to join. Market reports are published twice yearly.

https://initiative.bulwiengesa.de/micro-living/