German PBSA 2025

The number of international students in Germany is steadily increasing. Consequently, their proportion has increased considerably over the last ten years, and this trend is expected to continue in the coming years. This has led to an ever-growing demand for student housing (PBSA).

However, the public supply of student accommodation has not kept pace with this growth. The nationwide provision rate has fallen considerably since the early 1990s, leading to a housing shortage. This situation is expected to worsen in the coming years. The demand for student housing is also being met by the general housing market, which is tight.

Against this backdrop, the private PBSA sector is becoming increasingly important in Germany's seven largest cities, with market shares and maturity varying by location. Berlin is the clear leader in this respect, while other metropolises such as Düsseldorf still have development potential.

JLL analyses three critical aspects of the PBSA market in detail. Firstly, it examines developments on the supply side in the context of Germany's ongoing construction crisis. This is particularly relevant given that the comparatively young private PBSA segment continues to be heavily dependent on new project developments. Secondly, current rental trends in Germany's seven largest cities are examined. The clear imbalance between supply and demand in these cities has triggered very dynamic rental growth. JLL draws on its own data and analyses. Thirdly, JLL provides comprehensive insights into the PBSA investment market by analysing current transaction volumes, investor sentiment, and yield trends.