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    June 30,
1997

                     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
10.

<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
                                       

                              ASSETS

<TABLE>
<CAPTION>

                                            June 30,   December 31,
                                                1997         1996    

Real estate assets:
  Multi-family apartment complexes, net of
     accumulated depreciation of $10,880,907,
     <S>                                  <C>          <C>
     and $10,420,771, respectively        $ 8,510,178  $ 8,770,063
  Retail center, net of accumulated
     depreciation of $3,872,181, and
     $3,676,352, respectively               5,843,228    6,038,521

       Total real estate assets            14,353,406   14,808,584

Cash and cash equivalents (Note 2)          1,049,681    1,177,332
Cash restricted for tenant security deposits   31,755       36,823
Replacement reserve escrow                     60,132       52,009
Prepaid expenses and other assets             701,457      584,929
Deferred expenses, net of accumulated
  amortization of $109,310 and $91,377,
  respectively                                177,984      195,917

       Total assets                       $16,374,415  $16,855,594



                      LIABILITIES AND PARTNERS' EQUITY

Liabilities:
  Mortgage notes payable                  $12,465,507  $12,562,165
  Accounts payable                              3,324        7,431
  Accrued expenses and other liabilities      765,818      846,419

       Total liabilities                   13,234,649   13,416,015

Partners' equity (deficit) (Note 3):      
  Investor Limited Partners (27,184
     Units outstanding)                     3,802,831    4,072,663
  Original Limited Partner                   (408,933)   (384,948)
  General Partners                           (254,132)   (248,136)

  Total Partners' equity                    3,139,766    3,439,579

  Total liabilities and Partners' equity  $16,374,415  $16,855,594

</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    For the Six Months
                              Ended June 30,           Ended June 30,  
 
                            1997         1996        1997       1996   

Revenue:
<S>                           <C>          <C>         <C>        <C>
 Rental                       $1,165,732   $1,122,274  $2,361,772$2,287,161
 Interest income                  12,745       19,332      28,058    39,569

   Total revenue               1,178,477    1,141,606   2,389,830 2,326,730
 
Expenses:
 Operating (Note 4)              284,927      285,765     566,898   570,204
 Maintenance                     121,511       81,774     187,606   152,000
 Real estate taxes               106,990      112,593     234,811   222,556
 General and administrative (Note 4)36,236      7,770      73,959    36,702
 Management fees (Note 4)         54,348       48,698     104,436    97,957
 Depreciation and amortization   337,327      321,647     673,898   637,439
 Interest                        272,511      276,396     545,991   553,688
    

   Total expenses              1,213,850    1,134,643   2,387,599 2,270,546
  

Net income (loss)             $  (35,373)  $    6,963  $    2,231$   56,184
                              

Allocation of net income (loss)
 (Note 3):

 Investor Limited Partners
   (27,184 Units outstanding) $  (35,019)  $    6,267  $    2,008$   50,566

 Per Unit of Investor Limited
   Partner Interest           $    (1.29)  $      .23  $      .07$     1.86

 Original Limited Partner     $     -      $      557  $      178$    4,495
 
 General Partners             $     (354)  $      139  $       45$    1,123
                              

</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
                                         
<TABLE>
<CAPTION>
                                               For the Six Months
                                                  Ended June 30,  

                                                1997      1996    
Operating activities:
<S>                                          <C>        <C>
  Net income                                 $    2,231 $  56,184
  Adjustments to reconcile net income
     to net cash provided by operating activities:
   Depreciation and amortization                673,898   637,439
   Changes in assets and liabilities:
      Decrease (increase) in cash restricted
       for tenant security deposits               5,068    (1,421)
      Decrease (increase) in prepaid expenses and
       other assets                            (116,528)    39,350
      Decrease in accounts payable               (3,440)   (48,530)
      Decrease in accrued expenses and other
       liabilities                              (80,601)   (27,598)

          Net cash provided by operating 
            activities                          480,628   655,424

Investing activities:
  Deposits to replacement reserve escrow        (12,000)   (12,000)
  Withdrawals from replacement reserve escrow     3,877     17,287
  Additions to fixed assets                    (200,787)  (151,649)
  Decrease in accounts payable related to fixed 
     asset additions                               (667)      -   

          Net cash used in investing
            activities                         (209,577)  (146,362)

Financing activities:
  Principal payments on mortgage notes payable  (96,658)   (89,182)
  Distributions                                (302,044)  (302,044)

          Net cash used in financing
            activities                         (398,702)  (391,226)

Net increase (decrease) in cash and cash equivalents
                                             (127,651)     117,836

Cash and cash equivalents, beginning of period 1,177,332 1,311,037

Cash and cash equivalents, end of period     $1,049,681 $1,428,873
               
</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, 1996
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 (consisting of only normal
recurring accruals) necessary to present
fairly the Partnership's consolidated
financial position as of June 30, 1997, its
results of operations for the three and six
months ended June 30, 1997 and 1996, and its
cash flows for the six months ended June 30,
1997 and 1996.  Certain prior period balances
have been reclassified to conform with current
period consolidated financial statement
presentation.

The results of operations for the three and
six months ended June 30, 1997 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:

June 30,December 31, 
<TABLE>
<CAPTION>
                                         1997           1996     

      <S>                             <C>           <C>
      Cash and money market accounts  $  553,276    $   285,964
      Commercial paper                   496,405        891,368
   
                                      $1,049,681    $ 1,177,332
</TABLE>
At June 30, 1997, commercial paper represents
corporate issues complying with Section 6.2(a)
of the Partnership Agreement purchased through
a corporate issuer maturing in the third
quarter of 1997.  At June 30, 1997, the
carrying value of the Partnership's investment
in commercial paper approximates fair value.












Continued
      KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                     

(3)   Changes in Partners' Equity

   A summary of changes in Partners' equity (deficit) for the six
   months ended June 30, 1997 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, 1996$ 4,072,663$(384,948)$(248,136)$3,439,579

     Net income      2,008            178        45       2,231

     Distributions   (271,840)    (24,163)   (6,041)  (302,044)
     
     Balance at
      June 30, 1997  $ 3,802,831$(408,933)$(254,132)$3,139,766
</TABLE>
(4)Related Party Transactions

Commencing with the date of acquisition of the
Partnership's properties, the Partnership
entered into agreements under which property
management fees are paid to an affiliate of
the General Partners for services as
management agent.  Such agreements provide for
management fees payable monthly at a rate of
4% of the gross receipts, net of leasing
commissions, from the commercial property
under management and 5% of gross receipts from
residential properties under management.  The
residential management agreements were sold to
BRI OP Limited Partnership, a subsidiary of
Berkshire Realty Company Inc., a publicly
traded real estate investment trust and an
affiliate of the General Partners, on February
28, 1997.  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 accounting, computer,
insurance, travel, legal and payroll; and with
the preparation and mailing of reports and
other communications to the Limited Partners.

Amounts accrued or paid to the General
Partners or their affiliates were as follows:
<TABLE>
<CAPTION>
                    For the Three Months For the Six Months
                       Ended June 30,       Ended June 30,   
                      1997     1996     1997      1996   

<S>                     <C>      <C>      <C>       <C>
Property management fees$ 54,348 $ 48,698 $104,436 $ 97,957
      
Expense reimbursements  41,454  34,690  79,015     70,789
Charged to operations$ 95,802 $ 83,388 $183,451 $ 168,746
</TABLE>
(5)     Subsequent Event

   Subsequent to the end of the second
   quarter, on July 30, 1997, the Partnership
   refinanced the Courtyards Village mortgage
   note.  The new $5,280,000 note bears
   interest at an annual rate of 7.88% with
   equal monthly installments of $38,302,
   consisting of principal and interest, and
   matures on June 1, 2007.  Net refinancing
   proceeds are expected to total
   approximately $1,860,000. 

  
<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. 

Subsequent to the end of the second quarter,
on July 30, 1997, the Partnership refinanced
the Courtyards Village mortgage note.  The new
$5,280,000 note bears interest at an annual
rate of 7.88% with equal monthly installments
of $38,302, consisting of principal and
interest, and matures on June 1, 2007. 
Refinancing proceeds of approximately
$1,860,000 from the refinancing will provide
additional liquidity to fund capital
improvements at the Partnership's properties,
Courtyards Village, Nora Corners and Windsor
Apartments.  Approximately $1,217,000 in fixed
asset expenditures are anticipated in 1997 in
order to improve the appearance of the
properties and allow them to remain
competitive in their respective markets. 
These improvements include sign replacements
at Windsor Apartments and interior
improvements and appliance replacements at
both Courtyards Village and Windsor
Apartments.  Improvements at Nora Corners
primarily consist of tenant build-outs and
upgrades to the exterior of the building.

Cash Flow

Shown below, as required by the Partnership
Agreement, is the calculation of Cash Flow of
the Partnership for the six months ended June
30, 1997.  The General Partners provide the
information below to meet requirements of the
Partnership Agreement.  However, Cash Flow
should not be considered by the reader as a
substitute to net income (loss), as an
indicator of the Partnership's operating
performance or to cash flows as a measure of
liquidity. 
<TABLE>
<CAPTION>
                                            Rounded to $1,000

     <S>                                       <C> 
     Net loss for tax purposes                    $  (3,000) 

     Items not requiring or (requiring) the use of
      operating funds:
       Tax basis depreciation and amortization      682,000
       Principal payments on mortgage notes payable (97,000)
       Expenditures for capital improvements       (201,000)
       Additions to working capital reserves        (79,000)
       
     Cash Flow                                   $ 302,000

</TABLE>
                           Continued<
<PAGE>
      KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES
                                     


Operations

Cash Flow, as calculated by Section 8.2 (a) of
the Partnership Agreement, before additions to
capital reserves, decreased during the six
months ended June 30, 1997 as compared to the
same period in 1996 due primarily to increased
capital improvements at the Partnership's two
residential properties, Courtyards Village
("Courtyards") and Windsor Apartments
("Windsor") and to a decrease in net income. 
 
Overall, net income decreased for the three
and six months ended June 30, 1997 when
compared to the same periods in 1996 as the
increase in total expenses more than offset
the increase in total revenue.  While
occupancy remained relatively stable during
these periods, rental revenue increased as a
result of collections of late and relet fees
at Courtyards during the second quarter of
1997 and rental rate increases implemented at
Courtyards and Windsor in 1996 and 1997.

Total expenses increased for the three and six
months ended June 30, 1997 as compared to the
same periods in 1996 as maintenance, general
and administrative, and depreciation expenses
all rose.  Maintenance expense increased
primarily due to preventative pest control at
Windsor and landscaping at Courtyards during
the second quarter of 1997.  General and
administrative expense increased due to costs
incurred in connection with the operation of
the Partnership, including the preparation of
reports and other communications to investors. 
Also, the Partnership incurred legal costs
related to the unsolicited tender offers made
to purchase Partnership Units.  Depreciation
expense increased in conjunction with
increased capital improvements completed at
the Partnership's properties in recent years.

<PAGE>
<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.


<PAGE>


DATE: August 12, 1997