Berlin, once celebrated as one of Europe’s most exciting destinations for students, professionals, and digital nomads, is witnessing a notable shift in its short-term housing landscape. Once driven by strong international demand, flexible furnished rentals, and a fast-growing coliving scene, the city is now facing a decline. The signs are visible: listings for short-term furnished apartments have surged—reportedly up by as much as 30%—while booking activity has dropped across multiple platforms and providers.
The situation is not a crash but a correction. The market is responding to a combination of factors: an oversupply of apartments, diminished tenant trust, extreme pricing adjustments, political uncertainty, and an international audience that’s becoming increasingly hesitant to choose Berlin as their next stop.
What started as a promising segment in Berlin’s rental economy—offering furnished, ready-to-move-in apartments—quickly became overcrowded. An influx of new players entered the market over the past few years, hoping to capitalize on the city’s growing appeal to internationals. The promise of quick returns led to aggressive expansion, and today the market is saturated with similar offerings, many lacking clear differentiation or adequate quality control.
Rooms that once had a waiting list now sit empty. Providers that once charged top-tier rates are struggling to maintain occupancy and have begun lowering prices significantly. It’s not uncommon to see rooms once listed at €1,000 now going for €500 or less.
But lower prices are only part of the story.
A major issue driving the market downturn is not just supply and demand, but trust—or the lack of it. For several years, coliving in Berlin has suffered from a growing gap between what is advertised and what is delivered. Overly polished listing photos, misleading apartment descriptions, and unresponsive customer service have become common complaints among international renters.
Students and professionals arriving in Berlin are often confronted with realities that do not match expectations. Issues such as dirty apartments, non-functional appliances, and unclear rental terms erode confidence. Once a tenant has a bad experience, that story spreads quickly—and with Berlin being a hotspot on social media, reputation damage moves fast.
For those researching their move to Berlin, forums and expat groups are now filled with cautionary tales. The city, once a magnet, is beginning to be seen as a housing risk.
Some coliving providers in Berlin have responded to the decline in demand with deep price reductions. Monthly rents that once pushed the upper bounds of tenant affordability are now being slashed to less than half. This dramatic change isn’t being driven by seasonal patterns—it’s a response to underperformance and mounting vacancies.
While discounts might attract short-term interest, they do little to restore the long-term reputation of an already shaken industry. When tenants see €1,000 rooms now advertised for €400 to €500, it signals more than a deal—it reveals a prior pricing model that was deeply inflated.
This has sparked a shift in consumer perception. Many prospective renters now wait for discounts or hesitate to book entirely, believing that the true value of furnished apartments and coliving spaces in Berlin is far lower than what’s often advertised.
Not all providers are reeling from the market correction. Some companies—those that entered the space with balanced pricing and a commitment to genuine value—are faring relatively better. They may still be experiencing a downturn, but it hasn’t required them to compromise their pricing integrity or slash rates in desperation.
KUMMUNI, a coliving provider in Berlin known for its transparent pricing and anti-discrimination policy, has been one of the few to navigate the downturn with measured impact. According to Sunit Bhalshankar, B2B Account Management Supervisor at KUMMUNI, “We’ve observed a visible dip in bookings. But because we didn’t inflate our prices to begin with, we haven’t had to drastically drop them like others. As we never overpriced our properties, we didn’t need to offer so-called discounts—simply because we’ve always offered what’s reasonable. And ‘reasonable’ means something that’s fair for the tenant and for us. We’re profitable, and the tenant can afford the rent. That’s the balance.”
This approach of realistic pricing from the start allowed KUMMUNI to avoid the cycle of overcharging followed by over-discounting that has hurt many other providers. It also builds a longer-term sense of reliability that can weather periods of lower demand.
Beyond the business mechanics, Berlin’s housing downturn is also tied to political uncertainty. Germany is currently facing an unstable political phase. The absence of a clearly functioning coalition government, combined with growing media attention on the rise of right-wing extremism, has created an atmosphere of tension and unpredictability.
For international students and professionals considering Germany as a destination, these factors matter. Concerns about social integration, safety, and cultural acceptance weigh heavily in decision-making, particularly for those coming from the Middle East, Africa, or Asia.
Germany still ranks high on academic and economic opportunity charts, but its image has become more complex. Where it was once seen as a progressive, secure choice, it is now viewed with growing caution—particularly when it comes to living in Berlin, which, despite being a liberal city, cannot entirely escape national political narratives.
Adding to the complexity is the fact that Germany’s net immigration rate has weakened compared to other developed countries. This is partly a result of stricter immigration policies and partly due to perception. Many international students and young professionals now view countries like the Netherlands, Portugal, or even Estonia as easier, friendlier places to start their European journey.
Bureaucracy, language barriers, and the risk of housing scams in Germany are well-known frustrations. For many, it’s easier to choose another destination than to navigate Berlin’s administrative maze. Even though many German universities offer world-class education with low or no tuition fees, the barriers to entry—especially related to housing—are enough to steer people elsewhere.
This trend has a direct impact on the coliving market in Berlin. A declining number of new arrivals means fewer tenants, and fewer tenants mean more vacancies.
Another layer of the problem is how Berlin has been marketed in recent years. For a long time, the city was presented as a haven for young creatives, with limitless opportunities, affordable housing, and an ultra-cool urban culture. While the spirit remains, the infrastructure has not kept pace.
Marketing narratives promised “stress-free living” and “community living” through coliving platforms. But too often, the reality was a shared apartment with no sense of community, no direct landlord access, and contractual confusion. Many tenants felt more like customers than residents—unseen and unvalued.
This misalignment between expectation and reality now defines Berlin’s short-term housing reputation. It’s no longer just about what providers offer—it’s about what tenants believe, based on peer reviews and lived experiences. And right now, the belief is that coliving in Berlin is overpriced, underwhelming, and untrustworthy.
If Berlin’s coliving sector is to stabilize and thrive again, it will have to rebuild tenant trust. This means returning to basics: real photos, clear contracts, transparent pricing, multilingual support, and ethical service. It also means understanding that short-term tenants—especially international ones—are making high-stakes decisions with limited information. The responsibility to guide, not mislead, is on the provider.
Companies that focus on long-term brand health, not short-term occupancy, will emerge stronger. The market doesn’t need more apartments—it needs better experiences. Providers must stop viewing tenants as short-term revenue streams and start viewing them as future advocates.
The decline in Berlin’s short-term housing market is real, but it’s not the end. It’s a necessary recalibration after a period of unsustainable growth, marketing overreach, and pricing greed. It’s a reminder that in the age of online reviews and peer-to-peer information, no provider can hide behind design or branding alone.
A few companies, entered the market with discipline and realistic expectations. By emphasizing fairness—for both tenant and provider—they’ve shown that sustainable coliving in Berlin is possible, even in turbulent times. The industry now needs to follow suit, learning from the overcorrections and focusing on fundamentals.
Berlin still has everything it needs to be a leading destination for global talent. But for its coliving market to recover, the industry must acknowledge its mistakes, rebuild credibility, and realign itself with the values that first made Berlin so attractive: openness, affordability, and authenticity.
