1. What are the current developments on the Munich real estate market?

2. What are the current rental prices in Munich?

3. What are the real estate prices for condominiums in Munich?

4. How high are the real estate prices for single and multi-family houses in Munich?

5. How high are the real estate prices in Munich by district?

6. What is the prognosis for the development of real estate prices in Munich?

7. Contact person - this is what your local expert says

The high demand for living space and the associated increase in real estate prices already suggest that Munich is growing. Almost 1.6 million people currently live in the city on the Isar. This corresponds to a population growth of +4.7 percent since 2014. In addition to the families and students mentioned at the beginning, skilled workers who work for international companies such as BMW, Allianz or Siemens are moving here. The enormous population growth is reflected in an extremely low vacancy rate. Just 0.2 percent of the available residential real estate is unused. With this value, Munich is once again far below the level of other sought-after residential locations such as Frankfurt am Main (0.3 percent), Stuttgart (0.5 percent) or Cologne (0.9 percent).

Of all major German cities, Munich has the highest average asking rent. This applies to both existing properties and new buildings. In the second quarter of 2020, tenants paid an average of EUR 18.33 per square meter of living space for an existing property, which is +2.1 percent more than in 2019. If the price changes are calculated over the past five years, the growth in this sub-market is even +18.64 percent. The rents in the new construction sector are also still on the upswing. After the price level here eased slightly in 2016, the bottom line has been that asking rents have risen again over the past four years. In the second quarter of 2020, tenants paid an average price per square meter of 20.62 euros for newly created living space. However, the current increase is the lowest year-on-year: The increase from 2019 to 2020 only corresponds to an increase of +0.24 percent. Over the past five-year period, the asking rent rose by +12.55 percent.

Not only the rent, but also the asking prices for condominiums are at a national record level in Munich. Compared to 2019, the purchase prices for both existing and newly built condominiums increased. If one looks at the development of the asking prices of existing properties and new buildings separately, it can be seen that the latter property type experienced a greater increase in value in the past year. A square meter in a new Munich building cost an average of 10,431 euros in the second quarter of 2020. This corresponds to a growth of +10.5 percent compared to the previous year. For an existing condominium, on the other hand, buyers paid an average price of 8,524 euros per square meter. The offer price thus rose by +7.84 percent. Calculated over the past five years, the increase in value for condominiums in Munich was +38.09 percent (new buildings) and +33.96 percent (existing properties).

The upward trend on the housing market in Munich has also been unbroken for years. Average asking prices of 1,512,456 euros were achieved in 2020 for a one- and two-family house. This represents an increase in the price level of plus 26 percent compared to 2015.

The market for multi-family houses and residential and commercial buildings in Munich has been characterized by extreme excess demand for years. The average offer price in the first half of 2019 was 7,468 euros per square meter. This puts Munich on a much higher level than any other major city in Germany. You can find detailed information on transaction figures, rents, prices and factors in our Residential and Commercial Buildings Market Report 2020.

Even if real estate prices in Munich are consistently high, there are sometimes significant price differences depending on the location and type of property. The most popular districts among buyers of condominiums are the old town, Altschwabing and Altbogenhausen. By contrast, Nymphenburg, Schwabing and Obermenzing are the preferred residential areas for home buyers. For more information, please contact our Ilkay Koenec real estate agents in Munich-Schwabing! In the following we will go into more detail on the price ranges in the districts of Munich in very good, good, medium and simple locations.

Districts in Munich that have a very good location include the centrally located old town, Lehel and parts of Schwabingen, Nymphenburg and Neuhausen. In addition, southern parts of Solln, Thalkirchen and Harlaching fall into this location category. One- and two-family houses in these districts reach a price range of 5 million to 20 million euros. The square meter prices for condominiums in these parts of the city range between 10,000 euros and 25,000 euros, well above the average property prices in Munich. In the residential and commercial building segment, prices are now between 6,500 and 13,000 euros in the best location.

The same applies to properties in good locations, which have the largest share of Munich's real estate market. In the districts of this location category, single and two-family houses achieve asking prices of 1.8 to 7 million euros. Condominiums are also at a high price level, with prices per square meter between 8,300 euros and 17,000 euros. Multi-family houses cost 6,000 to 8,000 euros per square meter. Districts in a good location include the central areas of Maxvorstadt, Au, Isarvorstadt and Haidhausen. This also includes the districts of Obermenzing, Laim, Hadern, Westpark, Pasing Obergiesing, Untergiesing and parts of Solln and Thalkirchen.

The eastern districts of Berg am Laim, Riem, Trudering and Ramersdorf are located in the middle. Moosach, Untermenzing and Allach also fall into this category. The local offer prices for single and two-family houses are between 850,000 euros and 3.5 million euros. The real estate prices for condominiums in these districts of Munich range from 6,500 euros to 9,500 euros and the purchase price of entire apartment buildings is between 4,750 and 6,250 euros per square meter.