Munich exceeds the rent cap: 24.13 euros per square meter in the old town!

Munich exceeds the rent cap: 24.13 euros per square meter in the old town!

Rental prices in Munich continue to be on a steep upward trend. In the first quarter of 2025, the average price rose to around 19.6 euros per square meter, making the Bavarian capital the most expensive city in the Free State. These numbers come from Mercury, which also show that Munich is more than twice as expensive as the Germany-wide average of around 8.84 euros per square meter.

The most expensive districts in Munich are Altstadt-Lehel with a whopping 24.13 euros/m², followed by Ludwigsvorstadt-Isarvorstadt (23.55 euros/m²) and Au-Haidhausen (22.99 euros/m²). At the other end of the spectrum, the cheaper districts such as Aubing-Lochhausen-Langwied (17.64 euros/m²) or Allach-Untermenzing (18.45 euros/m²) impress with their comparatively affordable prices.

Rent index and current developments

According to stadt.muenchen.de The rent index in the Bavarian capital is recreated every two years, with the latest edition for 2025 being a completely new one. This change follows the city council's decision in 2011 to carry out the updates every two years. The basis for determining this data is privately financed apartments that have experienced changes in rental prices over a period of six years.

What's particularly interesting are the top prices, which are noticeably high in the quieter corners of the city. At Gärtnerplatz the prices are 24.56 euros/m², while around the Deutsches Museum even 24.37 euros/m² are due. Many Munich residents are concerned about rising rents, which pose a challenge to the affordability of housing.

View beyond the borders of Munich

In a larger context, the situation in Germany looks bleak. Loud FTD

The forecasts for 2025 indicate a further increase, although the rental price index could rise to 11.40 euros/m² in general terms. Finding affordable housing is becoming increasingly challenging for low-income households. Critical voices are calling for a larger number of construction projects and more subsidized housing to counteract the housing shortage.