München Buy & Rent – Munich is the most expensive city in Germany. Square metre prices are rising for tenants and buyers. Even for building land, plots, condominiums, single-family homes and apartment buildings, the prices are rising. But with increasing prices, profits are also increasing for investors. We take a close look at the Munich property market, financing, buying tips and tips for tenants. Right at the beginning we start with buyers and our view on the price development. After the overview you will find the purchase price for newly built condominiums in Munich. From 2009 to 2019 the price per square meter for an ETW (new building) has increased from 3,400 Euro / square meter to 8,100 Euro / square meter. An increase of 4,700 euros / square meter, a whole + 138.2% in only 10 years. Will the situation remain tense? Read our analysis with current facts and figures.
Munich counts itself to one of Germany’s economic capitals. It is also famous for its high quality of life and surrounding nature. The alps for skiing or hiking, as well as countless lakes for summer activities, are all nearby, not to mention the italian coast just to the south. Nowadays it is Germany’s third-largest city with some 1,5 million inhabitants. It has a very low unemployment rate, strong technology and science sector, as well as increasing popularity for startups, not to mention its everstrong automotive and aviation industries.
Munich Real Estate Market Explained
Munich’s real estate sector is characterized by strong demand and low supply. This is also unlikely to change, with little construction being done within city limits. Munich is also the most expensive city for real estate in Germany. The average prices for single- or double-family residences are around €1.3 mil. (almost twice as high as any other city in Germany) and for apartments around €450.000, also higher than in any other city in Germany.
Buy or Rent in Munich?
If you’re thinking about investing in Munich’s real estate, the question about rent or buy is probably in focus. The recommendation here is clear: Buy or, when possible, build. In recent years, the development has been towards low interest rate on mortgages. This means you’re likely to lose money renting, as opposed to buying, when looking at one property. Furthermore, with the inner city filling up, and with the market extremely tense, the best option is likely to invest in the outer parts of the city. Comparing the buying price and yearly rent in these parts shows that the ratio here is good. Most importantly though, the price is increasing, meaning that your investment will likely pay off. In these regions you’ll find prices like:
Buy: 5.600 €/m²
Rent: 16,34 €/m²
Prices Layout for Residentials
With the go-to being near the outer parts of the city, and with Munich being a family-friendly city, the prices for single- or double-family residences give a good indication of the market. These are, in €/m²
Very Good – €1.550.000-€16.000.000 (increasing)
Good – €1.300.000-€3.100.000 (increasing)
Mediocre – €700.000-€1.800.000 (increasing)
Simple – €500.000-€1.300.000 (steady)
Buy in Munich
First we take a detailed look at current statistics for buyers. Here you will find a lot of information, from the purchase price for a newly built condominium to tips for renting property. We will also take a look at two important issues: buying in Munich and the danger of a real estate bubble Munich.
Purchase price for newly built condominium
Purchase price development since 2010
Highest real estate loans in Munich
Munich real estate bubble?
Buy in Munich
Number of sales of luxury homes
Let the property
Munich’s city centre with its famous church.
Purchase price for newly built condominium
Purchase price for newly constructed condominiums in Munich from 2009 to 2019 (in euros per square meter). From 2009 to 2019, the price per square metre for an ETW (new building) rose from 3,400 euros / square metre to 8,100 euros / square metre. An increase of 4,700 euros / square metre, a whole + 138.2% in just 10 years. Will the situation remain tense? Read our analysis with current facts and figures.
Already 10 years ago Munich had a significantly higher price level for the purchase of real estate. The development continued. Here you can see a comparison of the purchase price of condominiums in Munich 10 years ago with the whole of Germany in the 1st quarter of 2010 and 2011 (in Euro per m²)
Munich
Munich, cut: 3.538 Euro / square meter
1st quarter 2010: 3,396 euros / square meter
Increase Q1 2011: 3,680 Euro / square meter
On average higher purchase price at the turn of the year 10 years ago:
The chart shows a ranking according to highest average mortgage loan in the 20 largest cities in Germany based on a current evaluation of the comparison platform Check24. Loans of 500,000 euros are compared here, for 101 square metres of living space.
The chart shows the risk of a real estate bubble by index value in selected major cities worldwide. The UBS Global Real Estate Bubble Index places the real estate market in a long-term perspective and aims to track the risk of real estate bubbles in global cities. The index examined 24 major cities. Munich ranks first in the survey.
Where is it worth buying a property (house, semi-detached house, condominium, etc.)? In comparison, one sees the potential that lies dormant above all in NRW and Hessen. This chart shows the cost advantages of home ownership compared to rents in German metropolitan areas in 2018.
Exclusive freehold flat, in the middle of the Viktualienmarkt.
Number of sales of luxury homes
How many luxury properties are sold and bought in Germany each year? These statistics show how manageable the market is. Here you can see the number of sales of luxury homes in selected cities in Germany.
Data show for visualization last survey in the 1st half of 2010 and 2011.
Are there enough apartments built?
You can live in your own property yourself or you can rent it out. With the current housing shortage, this is a good prerequisite for increasing rental income. Because as always, supply and demand. The chart shows the share of annual building completions in 2016-2018 in the annual demand in the period 2016-2020.
As with the purchase of real estate, Munich is also at the top of the German-wide comparison of average rents. The chart shows the average rent for an apartment with 3 to 4 rooms (81 to 105 sqm).
The chart shows requests and offers for rental apartments in the 14 largest cities in Germany. 150,000 advertisements for rental apartments and the corresponding contact enquiries were evaluated.
Number of residential buildings in Munich in the years from 1980 to 2018 (in 1,000). The changes at a glance. Residential buildings increase in the last 10 years (2008 – 2018):
+ 9,000 residential units (+ 6.7%)
Residential buildings increase in the last 38 years (1980 – 2018), since survey:
The chart shows the total ancillary housing costs per year for a three-person household (in euros). The average in Germany is EUR 1,900.84 per year. The cheapest cities for ancillary costs are:
Location is everything! Especially for entrepreneurs and companies. In all major cities the rents for commercial properties are rising, only in Berlin the costs for the monthly rent are getting cheaper, and that in the best location. This chart shows the indexed costs for commercial real estate in the largest cities in Germany (Hamburg, Cologne, Frankfurt, Munich and Berlin) in comparison. A joint index takes into account shop rents in prime locations, shop rents in secondary centres, office rents in city centres and the prices for commercial properties.
Finding the perfect office – How does Munich compare to other German cities? How many free spaces and practices are there in relation to Stuttgart, Hamburg, Berlin & Co. This chart shows the proportion of vacant office space as a proportion of total office space in selected German cities in 2018.
Where are office rents currently highest? Munich is at the top of the league, with current average office rents of 39.50 euros / m² and thus second place in the ranking of office rents in Germany. Here you can see the top rents for office space in German cities.
The romantic and typically European, Bavarian city centre.
Living, economy, city and inhabitants
City Map of Munich
Private households: Forecast until 2030 in Bavaria
Munich is family-friendly
Comparison: Munich, Hamburg, Cologne and Berlin
City map Munich
Private households: forecast until 2030
How is Munich developing as a city and in Bavaria as a federal state? Here you can see the number of private households in Germany by federal state in 2018 and forecast for 2030 (in 1,000). This is an optimal situation for landlords as the demand for living space increases.
Where do most of the inhabitants live? Here you see visualized, the 4 biggest cities in Germany. The graph shows the number of inhabitants in the German megacities on 31 December 2018, at the turn of the year 2018 / 2019.
New construction: Where are new apartments being built? Number of newly constructed residential buildings in Germany by federal state in 2017 and 2018 (in 1,000).
More statistics can be found at Statista
More statistics can be found at Statista
More statistics can be found at Statista
More statistics can be found at Statista
More statistics can be found at Statista
More statistics can be found at Statista
More statistics can be found at Statista
More statistics can be found at Statista
More statistics can be found at Statista
More statistics can be found at Statista
More statistics can be found at Statista
