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    March 31,
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

                                            March 31,  December 31,
                                                1998           1997   


Real estate assets:
  Multi-family apartment complexes, net of
     accumulated depreciation of $11,737,589 
     <S>                                  <C>          <C>
     and $11,454,014, respectively        $  8,866,889 $ 9,009,457
  Retail center (Note 3)                          -      5,673,137

       Total real estate assets              8,866,889  14,682,594

Cash and cash equivalents (Note 2)           4,375,863   2,254,160
Cash restricted for tenant security deposits   26,130       25,980
Prepaid expenses and other assets              408,278     742,453
Deferred expenses, net of accumulated
  amortization of $103,874 and $132,911, 
  respectively (Note 4)                        211,781     290,423

       Total assets                       $ 13,888,941$ 17,995,610



                      LIABILITIES AND PARTNERS' EQUITY

Liabilities:
  Mortgage notes payable (Notes 3 and 4)  $ 10,395,362$ 14,502,371
  Accrued expenses and other liabilities       509,342     808,885

       Total liabilities                    10,904,704  15,311,256

Partners' equity (deficit) (Note 5):      
  Investor Limited Partners (27,184
     Units outstanding)                      3,703,426   3,379,358
  Original Limited Partner                    (457,438)    (433,275)
  General Partners                            (261,751)    (261,729)

       Total Partners' equity                2,984,237   2,684,354

  Total liabilities and Partners' equity  $ 13,888,941$ 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
                                        
<TABLE>
<CAPTION>
                                           For the Three Months   
                                             Ended March 31,     
                                           1998        1997   

Revenue:
  <S>                                   <C>         <C>
  Rental                                $  994,935  $1,196,040
  Interest income                           42,065      15,313
  
       Total revenue                     1,037,000   1,211,353

Expenses:
  Operating (Note 6)                       276,415     281,971
  Maintenance                               48,114      66,095
  Real estate taxes                         80,153     127,821
  General and administrative (Note 6)       27,787      37,723
  Management fees (Note 6)                  47,882      50,088
  Depreciation and amortization            377,712     336,571
  Interest (Note 4)                        253,370     273,480
  
       Total expenses                    1,111,433   1,173,749

  Income (loss) before gain on sale of
     property                              (74,433)     37,604

Gain on sale of property (Note 3)          676,360        -   

Net income                              $  601,927  $   37,604
  
Allocation of net income (Note 5):

  Investor Limited Partners
     (27,184 Units outstanding):
     Income (loss) before gain on sale of
       property                         $  (73,689) $   33,844
     Gain on sale of property              669,597        -   
     Net income                         $  595,908  $   33,844

  Investor Limited Partners Per Unit:
     Income (loss) before gain on sale of
       property                         $    (2.71) $     1.24
     Gain on sale of property                24.63        -   
     Net income                         $    21.92  $     1.24

  Original Limited Partner:
     Income (loss) before gain on sale of
       property                         $     -     $    3,008
     Gain on sale of property                 -           -   
     Net income                         $     -     $    3,008
       
  General Partners:
     Income (loss) before gain on sale of
       property                         $     (744) $      752
     Gain on sale of property                6,763        -   
     Net income                         $    6,019  $      752



               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
                                           
                                               For the Three Months
                                                   Ended March 31, 
                                                  1998      1997   
Operating activities:
  Net income                                   $  601,927$   37,604
  Adjustments to reconcile net income to net
     cash provided by operating activities:
       Depreciation and amortization              377,712   336,571
       Gain on sale of property                  (676,360)      -
       Changes in assets and liabilities:
          Increase in cash restricted for tenant 
            security deposits                       (150)      (138)
          Decrease in prepaid expenses and other 
            assets                                199,282    39,802
          Decrease in accrued expenses and other
            liabilities                          (301,964)  (83,265)

               Net cash provided by operating 
                 activities                       200,447   330,574

Investing activities:
  Deposits to replacement reserve escrow             -       (6,000)
  Withdrawals from replacement reserve escrow        -        3,877
  Additions to fixed assets                      (171,343)   (94,355)
  Increase (decrease) in accrued expenses and other
     liabilities related to fixed asset additions   2,421      (843)
  Proceeds from sale of property, net           6,514,727      -   

               Net cash provided by (used in) 
                 investing activities           6,345,805   (97,321)

Financing activities:
  Repayment of mortgage note payable           (4,084,038)      -
  Principal payments on mortgage notes payable             
(22,971)     (47,842)
  Increase in deferred expenses                   (15,496)      -
  Distributions                                  (302,044)  (302,044)
  
       Net cash used in financing activities   (4,424,549)  (349,886)

Net increase (decrease) in cash and 
cash equivalents                                2,121,703  (116,633)

Cash and cash equivalents, beginning of period  2,254,160 1,177,332

Cash and cash equivalents, end of period       $4,375,863$1,060,699


</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 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 March 31, 1998 and its results of
operations and cash flows for the three months
ended March 31, 1998 and 1997.

The results of operations for the three months
ended March 31, 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>
                                          March 31,  December 31,
                                            1998         1997    

       <S>                              <C>          <C>
       Cash and money market accounts   $  4,375,863 $  1,857,152
       Commercial paper                         -         397,008
                                        $  4,375,863 $  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 $89,573.  For financial
reporting purposes, the Partnership realized a
gain of $676,360 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
   three months ended March 31, 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      (271,840) (24,163)   (6,041)   (302,044)
     
     Gain on sale of 
      property           669,597     -        6,763      676,360

     Net loss            (73,689)   -          (744)    (74,433)

     Balance at
     March 31, 1998  $ 3,703,426$(457,438)$(261,751)$ 2,984,237
</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
                                            Ended March 31,  
                                           1998      1997  

       <S>                               <C>       <C>
       Property management fees          $ 47,882  $ 50,088
      
       Expense reimbursements              28,704    37,561

        Charged to operations            $ 76,586  $ 87,649
       
</TABLE>
Expense reimbursements due from affiliates of
$186,964 and $78,010 were included in  prepaid
expenses and other assets at March 31, 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 three months ended March 31, 1998.

   <PAGE>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 $89,573
(see Note 3).

The Partnership anticipates making a special
distribution of $77.95 per Unit in the second
quarter of 1998, 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 $171,000
to date and are anticipated to spend
approximately $1,714,000 for fixed assets in
1998, primarily funded from 1997 refinancing
proceeds from Courtyards Village East
Apartments ("Courtyards").  These improvements
include an extensive $1,245,000 rehabilitation
project at Courtyards, interior and exterior
enhancements, carpeting and vinyl flooring
upgrades and roofing at Windsor Apartments.

Operations

The following discussion relates to the
operations of the Partnership and its
properties (Courtyards and Windsor Apartments)
for the three months ended March 31, 1998 and
1997.  The sale of Nora Corners on January 30,
1998, significantly impacts the comparability
of the Partnership's operations between the
two periods.








Continued
      KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES
                                     

Operations, Continued

Net income, net of Nora Corners's activity,
decreased during the three months ended March
31, 1998 as compared to the three months ended
March 31, 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. 
Interest income increased due to higher
average cash and cash equivalent balances
available for investment, as a result of the
sale of Nora Corners.  Proceeds of
approximately $2,400,000 were received from
the sale. 

Total expenses for the three months ended
March 31, 1998, net of Nora Corners's
activity, increased when compared to the same
period 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 for further discussion of this matter).

           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 SeniorSecurities
           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
           (a)Exhibits
           Response:  None

          (b)Reports on Form 8-K

Date  Event Reported  Financial Statements
Filed

January 30, 1998 Disposition of Nora
CornersPro Forma Balance Sheet at Shopping
Center. September 30, 1997.
                                 
Pro Forma Statements of Operations for the
nine months ended September 30, 1997 and for
the year ended December 31, 1996.




























<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: May 13, 1998