UNITED STATES
     SECURITIES AND EXCHANGE COMMISSION
           Washington, D.C. 20549
                           

                  FORM 10-Q

(Mark One)

     QUARTERLY REPORT PURSUANT TO SECTION 13
     OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF 1934

For the quarterly period ended    September 30, 1998

                     OR

     TRANSITION REPORT PURSUANT TO SECTION 13
     OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF 1934

For the transition period from                
        to                         

Commission file number          0-14377      
 


    Krupp Realty Limited Partnership-VII


          Massachusetts                      
               04-2842924
(State or other jurisdiction of              
           (IRS employer
incorporation or organization)               
             identification no.)

470 Atlantic Avenue, Boston, Massachusetts   
                 02210
(Address of principal executive offices)     
                    (Zip Code)


               (617) 423-2233
  (Registrant's telephone number, including
area code)


Indicate by check mark whether the registrant
(1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the
registrant was required to file such reports),
and (2) has been subject to such filing
requirements for the past 90 days.  Yes   X   
No      

The total number of pages in this document is
11.
<PAGE>
       PART I.  FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

This Form 10-Q contains forward-looking
statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. 
Actual results could differ materially from
those projected in the forward-looking
statements as a result of a number of factors,
including those identified herein.

      KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES
                                
                   CONSOLIDATED BALANCE SHEETS
                                      
<TABLE>
<CAPTION>
                             ASSETS

                                           (Unaudited)
                                          September 30,December 31,
                                                1998         1997   


Real estate assets:
  Multi-family apartment complexes, net of
     accumulated depreciation of $12,390,026,
     <S>                                  <C>         <C>
     and $11,454,014, respectively        $  9,362,434$ 9,009,457
  Retail center (Note 3)                          -     5,673,137

       Total real estate assets              9,362,434 14,682,594

Cash and cash equivalents (Note 2)           1,288,792  2,254,160
Cash restricted for tenant security deposits    26,450     25,980
Replacement reserve escrow                       8,400       -
Prepaid expenses and other assets              401,017    742,453
Deferred expenses, net of accumulated
  amortization of $123,173 and $132,911,
  respectively (Note 4)                        192,482    290,423

       Total assets                       $ 11,279,575$17,995,610



                      LIABILITIES AND PARTNERS' EQUITY

Liabilities:
  Mortgage notes payable (Notes 3 and 4)  $ 10,347,920$14,502,371
  Accrued expenses and other liabilities       519,448    808,885

       Total liabilities                    10,867,368 15,311,256

Partners' equity (deficit) (Note 5):      
  Investor Limited Partners (27,184
     Units outstanding)                      1,184,301  3,379,358
  Original Limited Partner                    (481,602)   (433,275)
  General Partners                            (290,492)   (261,729)

       Total Partners' equity                  412,207  2,684,354

     Total liabilities and Partners' equity$ 11,279,575$17,995,610

</TABLE>


             The accompanying notes are an integral
      part of the consolidated financial statements.<PAGE>
      KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES

              CONSOLIDATED STATEMENTS OF OPERATIONS
                                      
(Unaudited)
<TABLE>
<CAPTION>
 
                 For the Three Months   For the Nine Months
                   Ended September 30,  Ended September 30,   
                   1998         1997                  1998      1997   

Revenue:
 <S>                           <C>        <C>          <C>        <C>
 Rental                        $  951,935 $1,156,264   $ 2,873,403$3,518,036
 Interest income                   24,415     23,301       120,211    51,359

    Total revenue               976,350  1,179,565     2,993,614 3,569,395
 
Expenses:
 Operating (Note 6)               215,706    290,816       734,007   857,714
 Maintenance                       95,339     81,969       227,350   269,575
 Real estate taxes                 92,790    111,620       269,677   346,431
 General and administrative 
   (Note 6)                        30,924     30,767        88,428   104,726
 Management fees (Note 6)          40,127     49,536       131,330   153,972
 Depreciation and amortization               371,278      371,563  
1,049,449                       1,045,461
 Interest (Note 4)                221,736    303,519       697,350   849,510
    

      Total expenses            1,067,900  1,239,790     3,197,591 3,627,389
 
 Loss before gain on sale of 
 property                      (91,550)    (60,225)     (203,977)   (57,994)

Gain on sale of property (Note 3)    -          -          676,316      -   

Net income (loss)              $ (91,550) $  (60,225)  $   472,339$  (57,994)
                               
Allocation of net income (loss)
 (Note 5):

 Investor Limited Partners
   (27,184 Units outstanding):            
   Loss before gain on sale of
    property                 $ (90,634) $  (59,623)  $  (201,937)$  (57,414)
  Gain on sale of property        -            -          669,553      -   
  Net income (loss)           $ (90,634) $  (59,623)  $   467,616$  (57,414)

 Investor Limited Partners, Per 
   Unit:
   Loss before gain on sale of
    property                 $ (3.34)   $    (2.19)  $     (7.43)$    (2.11)
  Gain on sale of property        -            -            24.63      -   
  Net income (loss)           $ (3.34)   $    (2.19)  $     17.20$    (2.11)

 Original Limited Partner:
   Loss before gain on sale of
      property                 $     -    $     -      $      -   $     -
   Gain on sale of property          -          -             -         -   
   Net income (loss)           $     -    $     -      $      -   $     -   
 
 General Partners:
   Loss before gain on sale of
     property                 $     (916) $  (602)    $    (2,040)$     (580)
  Gain on sale of property          -          -            6,763      -   
  Net income (loss)           $     (916)$     (602)  $     4,723$     (580)
</TABLE>

               The accompanying notes are an integral
        part of the consolidated financial statements.<PAGE>
      KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES

              CONSOLIDATED STATEMENTS OF CASH FLOWS
                                         
(Unaudited)
<TABLE>
<CAPTION>
                                               For the Nine Months
                                               Ended September 30, 
                                                1998      1997    
Operating activities:
  <S>                                        <C>       <C>
  Net income (loss)                          $  472,339$  (57,994)
  Adjustments to reconcile net income (loss) to net
     cash provided by operating activities:
       Depreciation and amortization          1,049,449 1,045,461
       Gain on sale of property                (676,316)      -
       Changes in assets and liabilities:
          Decrease (increase) in cash restricted
            for tenant security deposits           (470)     7,966 
          Decrease (increase) in prepaid expenses 
            and other assets                    206,543    (4,022)
          Decrease in accrued expenses and other
            liabilities                        (289,437)  (136,596)

               Net cash provided by operating 
                 activities                     762,108   854,815

Investing activities:
  Deposits to replacement reserve escrow         (8,400)   (12,000)
  Withdrawals from replacement reserve escrow       -      64,009
  Additions to fixed assets                  (1,319,324)  (611,826)
  Decrease in accrued expenses and other liabilities
     related to fixed asset additions              -       (3,315)
  Proceeds from sale of property, net         6,514,681      -   

               Net cash provided by (used in)
                 investing activities         5,186,957  (563,132)

Financing activities:
  Proceeds from mortgage note payable              -    5,280,000
  Repayment of mortgage note payable         (4,084,038)(3,172,809)
  Principal payments on mortgage notes payable  (70,413)  (129,615)
  Increase in deferred expenses                 (15,496)  (135,231)
  Distributions                              (2,744,486)  (604,089)

               Net cash provided by (used in)
                 financing activities        (6,914,433) 1,238,256

Net increase (decrease) in cash and cash equivalents              
                                             (965,368)  1,529,939
Cash and cash equivalents, beginning of period2,254,160 1,177,332

Cash and cash equivalents, end of period     $1,288,792$2,707,271
               
</TABLE>









             The accompanying notes are an integral
      part of the consolidated financial statements.<PAGE>
      KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                     

(1)Accounting Policies

Certain information and footnote disclosures
normally included in financial statements
prepared in accordance with generally accepted
accounting principles have been condensed or
omitted in this report on Form 10-Q pursuant
to the Rules and Regulations of the Securities
and Exchange Commission.  In the opinion of
the General Partners of Krupp Realty Limited
Partnership-VII and Subsidiaries (the
"Partnership"), the disclosures contained in
this report are adequate to make the
information presented not misleading.  See
Notes to the Consolidated Financial Statements
included in the Partnership's Annual Report on
Form 10-K for the year ended December 31, 1997
for additional information relevant to
significant accounting policies followed by
the Partnership.  

In the opinion of the General Partners of the
Partnership, the accompanying unaudited
consolidated financial statements reflect all
adjustments necessary to present fairly the
Partnership's consolidated financial position
as of September 30, 1998, its results of
operations for the three and nine months ended
September 30, 1998 and 1997, and its cash
flows for the nine months ended September 30,
1998 and 1997.  
                                  
The results of operations for the three and
nine months ended September 30, 1998 are not
necessarily indicative of the results which
may be expected for the full year.  See
Management's Discussion and Analysis of
Financial Condition and Results of Operations
included in this report.          

(2)Cash and Cash Equivalents

Cash and cash equivalents consisted of the
following:
<TABLE>
<CAPTION>
                                      September 30, December 31, 
                                          1998          1997     

      <S>                             <C>           <C>
      Cash and money market accounts  $    791,095  $ 1,857,152
      Commercial paper                     497,697      397,008
   
                                      $  1,288,792  $ 2,254,160
</TABLE>

(3)Sale of Property

On January 30, 1998, the Partnership sold Nora
Corners Shopping Center ("Nora Corners") to
unaffiliated third parties.  Nora Corners was
included in a package with thirteen other
properties owned by affiliates of the General
Partners.  The total selling price of the
fourteen properties was $138,000,000, of which
the Partnership received $6,604,300, less
repayment of the existing mortgage note and
interest of $4,114,668 and its share of
closing costs of $89,619.  For financial
reporting purposes, the Partnership realized a
gain of $676,316 on the sale.  The gain was
calculated as the difference between the
property's selling price less net book value
of the property and closing costs.

Nora Corners was situated on 11.21 acres of
land, seven acres of which were owned by
certain non-affiliated third parties.  These
seven acres of land were leased to the
Partnership subject to a 99-year land lease
which expired in 2061.  The land lease
required annual rental payments of $17,280
from 1987 through 2012.  On January 30, 1998,
in conjunction with the sale of Nora Corners,
the land lease was assigned to the purchaser
of the property, under the terms of the land
lease.

Continued
  KRUPP REALTY LIMITED PARTNERSHIP-VII AND
SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
                           

(4)Mortgage Notes Payable

On July 30, 1997, the Partnership completed
the refinancing of the Courtyards Village
Apartments mortgage note.  The property was
refinanced with a $5,280,000 non-recourse
mortgage note payable at the rate of 7.88% per
annum with monthly principal and interest
payments of $38,302.  The mortgage note, which
is collateralized by the property, matures on
August 1, 2007 at which time the remaining
principal (approximately $4,658,637) and any
accrued interest are due.  The note may be
prepaid, subject to a prepayment penalty, at
any time with 30 days notice.  The Partnership
used the majority of the proceeds from the
refinancing to repay the existing mortgage
note on the property of $3,172,809, pay
closing costs of $151,536 and to establish
various escrows.

(5)Changes in Partners' Equity

A summary of changes in Partners' equity
(deficit) for the nine months ended September
30, 1998 is as follows:
<TABLE>
<CAPTION>
                      Investor   Original               Total
                      Limited    Limited   General    Partners'
                      Partners   Partner   Partners    Equity   

   Balance at
   <S>               <C>        <C>       <C>       <C>
   December 31, 1997 $3,379,358 $(433,275)$(261,729)$ 2,684,354

   Distributions:
     Operations       (543,680) (48,327)    (12,082)   (604,089)
     Capital 
       transaction    (2,118,993)   -       (21,404) (2,140,397)

   Loss before gain on
     sale of property   (201,937)   -        (2,040)   (203,977)

   Gain on sale of 
     property          669,553       -        6,763      676,316

   Balance at
     September 30, 1998$1,184,301$(481,602)$(290,492)$   412,207
</TABLE>

(6)Related Party Transactions

The Partnership pays property management fees
to an affiliate of the General Partners for
management services.  Pursuant to the
management agreements, management fees are
payable monthly at a rate of 4% of the gross
receipts, net of leasing commissions from the
commercial property which was under management
until January 30, 1998 (see Note 3), and 5% of
gross receipts from residential properties
under management.  The Partnership also
reimburses affiliates of the General Partners
for certain expenses incurred in connection
with the operation of the Partnership and its
properties, including administrative
expenses.             







Continued
      KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES

      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
                                     

(6)    Related Party Transactions, Continued

   Amounts accrued or paid to the General Partners' affiliates
   were as follows:
<TABLE>
<CAPTION>
                       For the Three Months For the Nine Months
                       Ended September 30,   Ended September 30,
                        1998          1997      1998       1997  

<S>                      <C>          <C>      <C>       <C>
Property management fees $40,127      $49,536$ 131,330   $153,972
      
Expense reimbursements   37,127        41,787   102,958   120,802

Charged to operations$  77,254        $91,323   $234,288$274,774
</TABLE>

   Expense reimbursements due from affiliates of $129,414 and
   $78,010 were included in prepaid expenses and other assets at
   September 30, 1998 and December 31, 1997, respectively.       

In addition to the amounts above, costs paid to the General
Partners' affiliates associated with the sale of Nora Corners were
$4,171 during the nine months ended September 30, 1998.        
   KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES
                                     

Item 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management's Discussion and Analysis of
Financial Condition and Results of Operations
contains forward-looking statements including
those concerning Management's expectations
regarding the future financial performance and
future events.  These forward-looking
statements involve significant risk and
uncertainties, including those described
herein.  Actual results may differ materially
from those anticipated by such forward-looking
statements.

Liquidity and Capital Resources

The Partnership's ability to generate cash
adequate to meet its needs is dependent
primarily upon the successful operations of
its real estate investments.  Such ability
would also be impacted by the future
availability of bank borrowings and the future
refinancing and sale of the Partnership's
remaining real estate investments.  These
sources of liquidity will be used by the
Partnership for payment of expenses related to
real estate operations, capital improvements,
debt service and other expenses.  Cash Flow,
if any, as calculated under Section 8.2(a) of
the Partnership Agreement, will then be
available for distribution to the Partners. 

On January 30, 1998, the General Partners sold
Nora Corners to unaffiliated third parties. 
The property was included in a package with
thirteen other properties owned by affiliates
of the General Partners.  The total selling
price of the fourteen properties was
$138,000,000, of which the Partnership
received $6,604,300 for the sale of its
property, less the payoff of the mortgage note
and its share of the closing costs of $89,617
(see Note 3).

On May 15, 1998, the Partnership made a
special distribution of $77.95 per Unit  based
upon approximately 90% of the proceeds of the
sale.  The remaining proceeds will be retained
to fund liabilities of the Partnership and
reserves for contingent liabilities.  The
balance of the reserves remaining after
satisfaction of such contingencies will be
distributed in accordance with the Partnership
Agreement. 

In order to remain competitive in their
respective markets, the Partnership's
properties have spent approximately $1,319,000
to date and are anticipated to spend
approximately $1,669,000 for fixed assets in
1998, funded from cash generated from property
operations and 1997 refinancing proceeds from
Courtyards Village East Apartments
("Courtyards").  These improvements include an
extensive $1,245,000 rehabilitation project at
Courtyards, interior enhancements, carpeting
and vinyl flooring upgrades and new doors on
all buildings at Courtyards and playground
improvements and roofing at Windsor
Apartments.

Financial Accounting Standards Board Statement
No. 130 ("FAS 130") "Reporting Comprehensive
Income" is effective for fiscal years
beginning after December 31, 1997, although
earlier application is permitted.  FAS 130
establishes standards for reporting and
display of comprehensive income and its
components in financial statements.  Financial
Accounting Standards Board Statement No. 131
("FAS 131") "Disclosures about Segments of an
Enterprise and Related Information"
establishes standards for disclosing measures
for profit or loss and total assets for each
reportable segment.  FAS 131 is effective for
fiscal years beginning after December 15,
1997.  The General Partners do not believe
that the implementation of FAS 130 or FAS 131
will have a material impact on the
Partnership's financial statements.




Continued
KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES
                                     

Liquidity and Capital Resources, Continued

The General Partners of the Partnership have
conducted an assessment of the Partnership's
core internal and external computer
information systems and have taken the further
necessary steps to understand the nature and
extent of the work required to make its
systems Year 2000 ready in those situations in
which it is required to do so.  The Year 2000
readiness issue concerns the inability of
computerized information systems to accurately
calculate, store or use a date after 1999. 
This could result in a system failure or
miscalculations causing disruptions of
operations.  The Year 2000 issue affects
virtually all companies and all organizations.

In this regard, the General Partners of the
Partnership, along with certain affiliates,
began a computer systems project in 1997 to
significantly upgrade its existing hardware
and software.  The General Partners completed
the testing and conversion of the financial
accounting operating systems in February 1998. 
As a result, the General Partners have
generated operating efficiencies and believe
their financial accounting operating systems
are Year 2000 ready.  The Partnership incurred
hardware costs as well as consulting and other
expenses related to the infrastructure and
facilities enhancements necessary to complete
the upgrade and prepare for the Year 2000. 
There are no other systems or software that
the Partnership is using at the present time.

The General Partners of the Partnership are in
the process of evaluating the potential
adverse impact that could result from the
failure of material third-party service
providers (including but not limited to its
banks and telecommunications providers) and
significant vendors to be Year 2000 ready.  No
estimate can be made at this time as to the
impact of the readiness of such third parties.

Operations

The following discussion relates to the
operations of the Partnership and its
properties (Courtyards Village and Windsor
Apartments) for the three and nine months
ended September 30, 1998 and 1997.  The sale
of Nora Corners on January 30, 1998,
significantly impacts the comparability of the
Partnership's operations between these
periods.

Net income, net of Nora Corners's activity,
decreased during the three and nine months
ended September 30, 1998 when compared to the
three and nine months ended September 30,
1997, as the increase in total expenses more
than offset the increase in total revenue. 
Rental revenue increased as a result of rental
rate increases implemented at both Courtyards
and Windsor Apartments in 1998.  Interest
income increased as a result of interest
earned on the investment of proceeds received
from the sale of Nora Corners.

Total expenses for the three and nine months
ended September 30, 1998, net of Nora
Corners's activity, increased when compared to
the same periods in 1997, due primarily to
increases in depreciation and interest
expenses.  Depreciation expense increased in
conjunction with increased capital
improvements completed at the Partnership's
properties.  Interest expense rose as a result
of the refinancing of the Courtyards mortgage
note in 1997 (see Note 4).



 

                             <PAGE>
      KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES

                   PART II - OTHER INFORMATION
                                      


Item 1.Legal Proceedings
       Response:  None

Item 2.Changes in Securities
       Response:  None

Item 3.Defaults upon Senior Securities
       Response:  None

Item 4.Submission of Matters to a Vote of Security Holders
       Response:  None

Item 5.Other Information
       Response:  None

Item 6.Exhibits and Reports on Form 8-K
       Response:  None

<PAGE>




                            SIGNATURE



Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.



                              Krupp Realty Limited Partnership-VII
                                         (Registrant)



                              BY:/s/Wayne H. Zarozny          
                                 Wayne H. Zarozny   
                                 Treasurer and Chief Accounting
                                 Officer of The Krupp
                                 Corporation, a General Partner.




DATE: November 10, 1998