In terms of size and population, Munich is the third largest city in Germany after Berlin and Hamburg, but only a quarter of the total number of properties is owned by local residents, and less than one percent are available for purchase or rent. In this regard, buying real estate in Munich is actually not so simple, although if you take a closer look at its areas, the problem of choice can be solved easier and faster.
By 2021, property prices in Germany have reached their all-time highs, despite the financial and economic crisis caused by the Covid-19 pandemic. At the same time, apartments have become much more expensive compared to detached houses, and the greatest growth was shown by properties located in areas that are considered elite.
This prestigious and expensive area, dominated by villas built at the beginning of the last century, is the largest in Munich. However, it is very heterogeneous in terms of price range: if in Herzog-Park and Alt-Bogenhausen there are several objects for sale at once more than 10 million euros, then in the old part of Bogenhausen you can find much more budget options (7-7.5 thousand euros for 1 sq.m.).
The western part of this area is in high demand among the wealthiest segments of the population, whose representatives – first of all, large businessmen – are attracted by peace, quiet and good environmental conditions. The north-eastern part of Bogenhausen is dominated by modern residential complexes, interspersed with office buildings and green areas. Families with children, belonging to the “upper” middle class, and wealthy young people can afford housing here. However, even the most modest apartment is unlikely to cost less than 200 thousand euros.
This area of Munich (the oldest in the whole city) is highly regarded for its central location and the presence of a large number of historical attractions and cultural institutions. At the same time, there are banks, offices, restaurants and shopping streets with pedestrian areas, although such proximity does not in any way disturb the peace and quiet of the local residents.
There are very few residential properties in this area, since there is practically no construction going on in the center – mostly houses are attached to existing buildings. Average cost of 1 sq.m. secondary real estate varies between 8-9 thousand euros, while in luxury new buildings at a slight distance from the center it reaches 10 thousand. However, buying a property in Altstadt-Lehel seems to be a profitable investment due to high rental prices and the same demand.
To the south of the center of Munich is the small and densely populated district of Glockenbach, which is the undisputed record holder for housing prices. However, it recently became such thanks to exclusive apartments in which many famous personalities from the world of sports and show business prefer to live. In them, prices reach 20 thousand euros per 1 sq.m., while in the rest of the housing stock they do not exceed 11 thousand euros.
However, even the most expensive residential properties for sale in Glockenbach find new owners in less than six months. This is explained not only by the prestige of the area, but also by the possibility of renting out housing at truly exorbitant prices – an average of 25 euros per 1 sq.m. per month.
Another area of Munich with expensive residential real estate is Au-Haidhausen, which was previously industrial, almost like Schwabing (by the way, it is also changing and developing very quickly), but has gradually become one of the most modern in the city. It is now home to many fashionable boutiques and restaurants, and the French Quarter, located near Place de Paris, offers cafés and shops in the same style.
There is a shortage of new large apartments in Au-Haidhausen, as demand far exceeds supply from construction companies. This also affects the general level of prices, which start from 6 thousand euros per 1 sq.m., as well as rental housing – from 16 euros per 1 sq.m. per month, which is higher than the Munich average.
Another prestigious district of Munich is Neuhausen-Nymphenburg, which is the second most densely populated area in the city. At the same time, a significant part of it is occupied by a park and a botanical garden, in the vicinity of which, as well as around Nymphenburg Castle and along the canal, the most “status” real estate is located – for example, on Titianstrasse.
Mostly, housing in this area is purchased by representatives of the “upper” middle class, among whom there are many young families with a high level of income. Average prices are 6-6.5 thousand euros per 1 sq.m., but in the Schlossviertel quarter there are quite a lot of properties for sale, designed for a wider segment of the population. Its growth has been stable over the past decade.
This is the largest district of Munich, consisting of two completely different parts. In Rome, which is adjacent to the new exhibition complex, multi-apartment residential buildings predominate, including many new buildings, while Trudering, bordering the forest, is characterized by small cottages for one or two families.
In the southern part of Trudering there are luxury villas priced from 2 million euros, and about the same prices apply to luxury apartments in the northern quarter of Waldtrudering. Many famous politicians and businessmen live here, but recently – since new residential buildings began to be built due to the increasing need for housing – the density of buildings and the population has increased due to wealthy families with children.
For middle-income families, it makes sense to pay attention to quiet residential areas on the outskirts of Munich. These include Untermenzing, Pasing, Obermenzing, Obergiesing and Solln, where the cost of 1 sq.m. housing does not exceed 6 thousand euros. In addition to affordable prices, their main advantages include a good environmental situation and the presence of a large amount of green space, which in the era of Covid-19 attracts many investors.