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Real estate prices in Munich 2022 – current price developments in different residential areas
Development of the market and current real estate prices in the Munich area for apartments and houses
In the last two and a half years, the real estate market has changed significantly. Historically low mortgage interest rates led to a housing boom, but the interest rate turnaround in 2021/2022 brought about a significant reluctance among prospective buyers. The higher interest rates significantly increased the overall cost of acquiring a property, forcing many potential buyers to abandon their dream of homeownership. Real estate sellers had to adjust their price expectations to find buyers. Despite falling prices, demand remained subdued until financing conditions improved in recent months, leading to a slight market recovery.
Interest rate developments and their effects
The era of cheap money came to an end in 2022. On July 21, 2022, the European Central Bank (ECB) raised its key interest rate by 0.5 % for the first time in more than six years. Since then, there have been ten further increases, bringing the key interest rate to 4.5 % in September 2023. These increases led to a rise in mortgage rates, which had averaged 1.30 % in 2020 and 2021, rose to 2.57 % in 2022 and further to 4.06 % in 2023. Since December 2023, however, mortgage rates have fallen slightly again, reaching 3.88 % in March 2024.
Development of real estate prices and market changes
Since 2010, the real estate market was characterized by rising prices for years. With the interest rate turnaround, potential buyers became hesitant, leading to a decline in real estate prices. In Munich, for example, prices fell from 9,475 euros per square meter in 2022 to 7,600 euros per square meter in 2023. Please note that these are average values. An improved financing environment could provide new impetus in the coming months. Tax incentives and support programs, as well as slightly lower mortgage rates, could increase the attractiveness of residential property investments again. Munich remains expensive, but market conditions have changed.
Supply and demand for real estate
Until the trend reversal in 2022, the supply of residential properties continued to shrink, and the market was virtually empty in 2021. The increase in mortgage interest rates led to an almost complete standstill in sales of houses and condominiums in 2022. In 2023, the supply continued to increase, albeit at a slower pace. In Munich, the number of residential properties on offer stagnated between 2022 and 2023. Price corrections first appeared in the state capitals before spreading to other areas.
New Construction of Apartments – Current Market Development
Building permits in Bavaria declined significantly in the last quarter of 2022. In 2023, high mortgage rates, rising construction material costs, and strict bank lending criteria had a major impact on permit numbers. The so-called „construction backlog“—that is, the halting or postponement of projects that had already been approved—has been a cause for concern for months. Project costs became increasingly difficult to estimate, leading to a decline in construction activity. In 2023, permits were issued for the construction of approximately 49,200 apartments in new residential buildings in Bavaria, a decline of 24.7 % compared to 2022.
Market activity and price formation
The residential real estate market is currently characterized by a certain inertia. The price discovery phase is ongoing, and price corrections are common in sales negotiations. The energy efficiency of a property is becoming increasingly important. Properties with high energy standards are in demand and generally stable in price, while older properties and houses with poor energy ratings are less sought after due to rising energy and construction costs, and can only be sold with significant price reductions. Location remains an essential factor in purchasing decisions, but stricter energy efficiency requirements are leading buyers to often prioritize a property's energy status over a good location. These factors are impacting property prices in Munich.
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Real Estate Prices in Munich 2024 –
The most important numbers and facts
What are the current real estate prices in Munich? The average price per square meter is currently 8,900 euros. When it comes to residential properties, a distinction is generally made between houses, apartments, and land.
Apartment prices in the Munich real estate market
The price per square meter for existing apartments varies depending on the location:
Average residential areas 6,700 EUR/m²
Good residential areas 7,500 EUR/m²
Best regards: 9,000 euros per square meter
Purchase prices for land
Land prices range between €1,500 and €3,000 per square meter. These prices depend heavily on the location and the buildable area.
House prices (existing homes)
House prices in Munich are highly dependent on the type of house and its location:
Townhouses: from approx. 800,000 EUR
Eckhäuser: from approx. 950,000 EUR
Semi-detached houses: approx. 1 million EUR
Detached single-family homes: approx. 1.1 million EUR
For an accurate valuation of a house, an independent appraisal by a real estate agent or expert is advisable.
Would you like to know the value of your property? Free and without obligation.
Do you want to know the value of your property?
Of course, you can also contact us directly. We are very happy to provide you with well-founded valuations. Call us: Tel. 089 70065020.
Our property valuation for you
- A high-quality analysis of your property.
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Clear presentation of real estate prices
Here we have graphically displayed the real estate price development in Munich for apartments and houses. This allows you to see at a glance where prices currently stand and how they have developed from 2016 to the present day. The percentage increase refers to the year 2015. Using the real estate price index, you can see by what percentage the increase occurred. Each property is unique and differs in its construction year, location, and amenities. The layout of the property also contributes to its market value, which influences the average price per square meter. Properties in prime locations, in particular, can deviate significantly from the indicated values. Therefore, these price indications are not a basis for an exact calculation of the price per square meter, but they serve only as an initial guide.
Development of apartment prices in Munich
Development of apartment prices in Munich
The most affordable prices for real estate can be found in Neuperlach and Hasenbergl. Currently, you have to pay the most in the city districts of Lehel, Schwabing, Bogenhausen, and Nymphenburg. Due to the high square meter prices in Munich, asking rents are also at a high level. This affects both new buildings and existing properties.
Properties under hereditary building rights are not included in the listed average prices. Hereditary building rights involve being permitted to build or buy a property on someone else's land. The property owner leases the land and pays the landowner an annual rent, known as the ground rent, formerly called hereditary lease.
The marketing period varies depending on the property and is influenced by various factors. Generally, properties in the state capital are not on the market for long, and the marketing period is rather short compared to other regions in Bavaria or Germany. In the commuter belt, the marketing period may be slightly longer than directly in the state capital, depending on the location.
Munich is undoubtedly one of Germany's most popular and livable cities.
Munich rental prices
Munich is known for its high real estate prices, both for buying and renting. Here is a comprehensive overview of current rental prices in Munich, based on various factors such as location, condition, and amenities of the properties.
Factors influencing rent prices
The level of rental prices in Munich is determined by several factors:
The geographical location of the property is crucial. Central and well-connected locations are more expensive. Apartments in Munich that are in popular districts or close to public transport generally have higher rental prices.
Modern and well-equipped apartments cost more. High-quality furnishings, such as modern kitchens and bathrooms, as well as the good overall condition of the property, increase the rental price.
Newer buildings often have higher rental prices. This is because they are usually better insulated and equipped with modern technology, which can increase the average price per square meter.
Larger apartments and those with practical layouts are more expensive. More living space means more room and comfort, which is reflected in the rental prices.
Apartments on higher floors can be more expensive, especially if they offer a good view. A higher floor can also mean more quiet and less street noise.
Living quality categories
To better classify rental prices, we have defined three categories of living quality:
Average living value
Residential areas in a central location, standard amenities, good building condition, acceptable transport links. These apartments offer good value for money and are attractive to many tenants.
Good living value
Good location in quiet residential areas, good amenities and condition. These apartments are located in desirable residential neighborhoods and offer a higher quality of life.
Very good quality of life:
Very good residential area with prestige character, first-class fittings and building structure. These apartments are often luxuriously equipped and are located in the best areas of the city.
A good location, amenities, and quality of living make the property a sought-after object on the housing market.
Apartment rental prices in Munich 2023
Here are the average rental prices per square meter for condominiums in Munich, based on residential value:
Average living value 17.00 EUR/m²
Good living value 20.30 EUR/sq m
Very good quality of life: 27.50 EUR/m²
Rental prices in Munich vary greatly depending on the location and amenities of the property. While mid-range neighborhoods and standard amenities offer lower rental prices, prime locations with first-class amenities are significantly more expensive. Other factors such as living space, year of construction, and floor also play an important role in price formation. This overview should help you better understand rental prices in Munich and make an informed decision. Apartments in Munich are expensive, but with the right information, you can find the right property for your needs.
The rent brake in Munich - What landlords should know
In August 2015, Bavaria introduced the rent brake, which also applied in Munich. However, at the end of 2017, the Munich District Court declared it invalid due to a lack of justification for the tight housing market. After a revision by the Bavarian government, the rent brake has been back in effect since August 2019.
How does the rent brake work?
Answer: When re-renting an existing apartment, the rent may not exceed the local comparable rent by more than 10 percent. This comparable rent is determined by Munich's qualified rent index.
The rent brake does not apply when: * A new apartment is rented for the first time. * The apartment was modernized recently, and the modernization costs are passed on to the tenant. * The rent is increased by more than 10% compared to the previous rent of the same apartment. * The landlord can prove that the rent is still significantly below the comparable local rent.
Answer:
- New buildings When renting out a newly constructed apartment for the first time, there is no rent control.
- Modernization: Following extensive modernization measures, the rent may also exceed the limit. This applies if at least one-third of the costs for a comparable new build apartment has been invested, minus pure maintenance costs.
- File protection If the rent was already above the local comparable rent before re-renting, the landlord may maintain this price. The landlord must provide written proof of the previous rent.
What rent increases are allowed?
Answer:
During an ongoing tenancy, rent increases are only permitted up to the locally customary comparable rent. In Munich, there is a cap of 15 percent within three years. This cap also applies if the rent has not been increased for more than three years. Rent increases due to modernization measures are excluded from this cap.
Further regulations
Answer:
- Rent caps Rent adjustments are not permissible if there is an agreement that fixes the rent for a specific period.
- Staff rent or index rent Rent adjustments are also not allowed for existing agreements on seasonal or indexed rent.
Consultation and Support
For further questions or advice regarding rent control, please feel free to contact us.
Your real estate agent for Munich
Katerina and Thomas Rogers are personally at your side – from the initial consultation to the successful marketing of your property. With us, there are no shifting faces: we are here for you with full commitment and expertise. We always handle your wishes and concerns promptly, reliably, and individually. With customized strategies, we ensure that sellers and buyers find their way to each other optimally – so that everyone is completely happy and satisfied in the end. Our high standards for quality and service have been recognized multiple times, including by BELLEVUE as „Best Property Agent.“ These awards confirm our commitment: we place the utmost importance on diligence, responsibility, and every detail – so that you are completely happy with the entire process and outcome.
Real estate prices and their significance for buying and selling properties
When selling, it is important to know how the real estate market is developing. When buying a property, the price also plays a crucial role. Detailed information on price development and location is invaluable.
This page is regularly updated and tracks the development of prices in the individual districts of Munich. Would you like to know what price you can achieve when selling your house or apartment? We would be happy to provide you with a valuation of your property in Munich and the surrounding area. Do not hesitate to contact us.
Would you like to buy a property and know if the apartment price or house price is appropriate? Rogers Real Estate relies on many years of experience when appraising properties. Whether you are buying a condominium, a house, or a plot of land, market value is crucial.
Real estate agent Rogers provides personal and individual service.
Rogers Immobilien specializes in the sale of apartments and houses in Munich and surrounding areas. You benefit from sound and competent advice in the areas of property valuation and the planning of new living space concepts. With Rogers Immobilien in Munich, you have a professional and competent real estate agent in Munich by your side.
Rogers Immobilien offers comprehensive real estate services to every seller. Whether you are selling an apartment or a house in Munich, at Rogers Real Estate Agents, clients' wishes and concerns are always the top priority. Individual requests are taken into account, and your property will be sold in the best possible way. You are in the best hands with Rogers Real Estate Agents.
Are you looking to sell your property in Munich?
Apartment and house sales with Rogers Real Estate
Would you like to buy a property in Munich? We list our properties on online portals as well as on our homepage. Call us or contact us by email. We will gladly send you a detailed exposé of your desired property and arrange an individual viewing appointment with you. Rogers Immobilienvermittlung is your real estate agent for Munich. Contact the qualified real estate agents at Rogers Immobilien. We are personal, discreet, and reliable!
Your property is getting the appreciation it deserves!
Do you have questions about the value of your property? We would be happy to inform you about the price of your apartment, house, or land and answer any further questions you may have about selling. As real estate agents, we have been successfully active in the residential real estate market in Munich since 2004.
The Isartor gate in Munich is just one of many sights the Bavarian capital has to offer.
Special Buildings in Munich
The Residence It was the ducal palace of the Wittelsbachs and was repeatedly expanded and remodeled over several centuries. The Wittelsbach Treasury contains masterpieces and jewels from the early Middle Ages to the Baroque and Classicism periods. Today, the Munich Residenz is one of the most important museums for interior design in Europe.
It is a modern structure built according to plans by the Munich-based architectural firm Allmann Sattler Wappner. The building impresses with its open and light-filled construction. The two 14-meter-high entrance gates are the most spectacular feature. When open, they appear like outstretched arms, ready to welcome visitors. It's no wonder this architectural masterpiece is one of the most visited churches in Munich.
Munich and Nymphenburg Palace belong together inseparably. The palace is one of the most magnificent examples of secular Bavarian Rococo style. Not only the palace, but also a large landscape park with further buildings can be visited. The park is a popular spot for many Munich residents to relax and escape the everyday.
This futuristic building can take pride in being the most visited attraction in the city of Munich. Not only is the vehicle delivery center located here, but car exhibitions also take place. Visitors can enjoy the culinary skills of top chef Bobby Bräuer, who serves the finest French Michelin-starred cuisine in Dining Room presents.
Monument protection
The image of Munich also includes many listed buildings and ensembles. The state capital has been awarding the Munich Facade Prize since 1970, recognizing buildings that have been renovated according to their original appearance. This honors the commitment of owners who are dedicated to preserving the listed buildings.
Cultural Highlights
The selection of diverse cultural offerings, the density of museums, galleries, art events, and concerts contribute to a high quality of life in Munich. Here's a glimpse into the diversity of Munich's cultural life.
Numerous masterpieces by renowned artists from the 14th to 18th centuries are exhibited in the Alte Pinakothek. Those interested in 19th-century art will be in excellent hands at the Neue Pinakothek. The Pinakothek der Moderne houses four individual museums: the collection of art from the 20th and 21st centuries, the Neue Sammlung (Design), the Architekturmuseum (Architecture Museum), and the Staatliche Graphische Sammlung (State Collection of Prints and Drawings). Contemporary artists ensure a diverse range of special exhibitions, events, and lectures.
At Luisenstraße 33, the Lenbachhaus It offers its visitors works by German and international contemporary artists. The city gallery underwent extensive renovation and reconstruction over four years. The reopening took place in 2013.
The German Museum is the world's largest museum of technology and has more than 1.4 million visitors annually. Visitors can obtain comprehensive information on all major areas of technology and the natural sciences across an area of 55,000 square meters. The museum offers vivid, hands-on learning, especially for families with children. There is a huge children's area where little ones can discover and try out the world of technology. But it's not just children who get their money's worth at the Deutsches Museum. A perfect place for the whole family, not just for a rainy weekend.
Urban development of Munich
Historically speaking, urban planning experiments can be found in Munich. Many construction projects in Munich had a model character. The urban planning concepts were able to keep up at the international level and have often taken on a pioneering role. Munich still benefits from this today. A large number of the ideas and construction concepts were prompted by practical necessity. However, they were often also driven by the urge for representation, economic constraints, or population growth.
The first expansion of the city center was carried out along the trade routes. Even today, the division of the old town into four quarters can still be recognized: the Graggenauer Viertel with the Residence, the Angerviertel with St. James's Abbey, the Hackenviertel with Sendlinger Straße, and the Kreuzviertel. Famous architects, predominantly from Italy, were recruited for representative construction projects such as the Theatine Monastery and the Theatine Church. Munich was also very well known for facade frescoes (Lüftlmalerei) on the houses of the old town. The construction and design of the popular English Garden took place over many years. Work began before 1800 and lasted into the first half of the 19th century. This beautiful garden landscape holds an outstanding position by European standards.
The population reached 100,000 in 1852, which helped Munich achieve the status of a major city. The increase in population created a demand for modern public administration. Street systems were created for individual expansion areas. New residential areas emerged, for example in Haidhausen and at Gärtnerplatz. The New Town Hall and the new Bavarian National Museum on Prinzregentenstraße were built by prominent architects and celebrated as major prestige projects.
Contact your real estate agent for Munich
Are you thinking about selling your property in Munich? Simply contact us and schedule a non-binding consultation appointment with us. We would be delighted to introduce ourselves and present our comprehensive real estate service to you. Write to us by email or call us at phone. 089 70065020
We look forward to hearing from you
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