Cost of apartments in Munich


Munich is the most expensive city to buy real estate in Germany. According to data for July 2019, the average cost of residential properties here is 9.1 thousand euros/m². The cost of apartments in Munich on the secondary market averages 8.1 thousand euros/m², new buildings – 9.6 thousand euros/m². Among all European cities in 2018, Munich ranked 6th in terms of housing costs.

Housing prices in Munich have been rising continuously for 15 years and have already doubled during this period. In 2018, the Swiss bank UBS compiled a rating of cities in the world in which a sharp decline in the real estate market is most likely, the so-called “burst of the price bubble.” Munich took second place in the ranking.

At the same time, most experts and investors agree that a fall in prices is not yet expected. Several factors contribute to the rise in housing costs in Munich. The Bavarian capital’s population has grown by about 6% annually for the past seven years, attracted by large numbers of jobs in industry, finance and information technology. The city is home to six of the largest German companies, including BMW, Siemens and Allianz.

The unemployment rate in the Bavarian capital is one of the lowest among the largest cities in Germany – 3.9%. According to Deutche Bank, as of 2019, demand for housing in Munich significantly exceeds supply. From 2009 to 2017, new real estate was built here for 100 thousand people, while the city’s population grew by 180 thousand people. Representatives of the city administration believe that at least in the next 10 years the existing demand will not be satisfied. Taking this into account, the growth in housing costs in Munich will continue in the future.

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Now you can buy an apartment in Munich with an area of ​​40 m² for 320 thousand euros, 80 m² – about 625 thousand euros, 100 m² – on average 830 thousand euros, 150 m² – about 1.48 million euros. The cost of an apartment in Munich can vary greatly depending on the condition of the house, the area and the surrounding area.

The most expensive apartments are sold in the respectable areas of Bogenhausen, Altstadt-Leel, Maxvorstadt, Glockenbach. The average cost of apartments here ranges from 10 to 12 thousand euros/m². Wealthy foreigners often purchase housing in Munich near the Ducal Park or the English Garden, one of the largest city parks in the world, larger in area than New York’s famous Central Park. Prices for a four-room penthouse in these areas can reach 4 million euros.

Despite the obviously high prices, you can find more affordable housing in Munich. In the former working-class neighborhoods of Sendling and Westend, prices are almost 40% lower than in the center, but the quality of houses, especially new buildings, is very high.

Giesing is home to students and young families. This is an area with good transport accessibility and developed infrastructure. You can buy an apartment here for 7 thousand euros/m².

The cost of budget apartments in Munich varies from 3.5-4.5 thousand euros/m². Such housing can be found in the cities of Germering, Kirchheim, Unterhaching, Grunwald located 15-20 minutes drive from the Bavarian capital.

You can learn more about the real estate market in Germany from our articles.



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