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Munich: Real estate prices are exploding! This is how expensive housing will be in 2025
Neuperlach remains a comparatively favorable location in Munich, while property prices are rising across the city. Find out more about the current trends and challenges on the Munich real estate market.
Munich: Real estate prices are exploding! This is how expensive housing will be in 2025
Real estate prices in Munich remain high and not only cause astonishment, but also worry lines among would-be owners. According to a recent analysis by Mercury The Bavarian capital remains the most expensive city in Germany when it comes to the real estate market. The average price per square meter is currently an impressive 8,461 euros, which means that you can only purchase 43 square meters of living space for 360,000 euros. For comparison: In the rest of Germany you get an average of 117 square meters for the same amount.
It is particularly painful in the 22 districts of Munich, where prices exceed the 10,000 euro mark per square meter. The most expensive regions include Graggenau with 25 square meters for 360,000 euros, followed by Gärtnerplatz and Lehel with 27 and 28 square meters. In contrast, districts such as Neuperlach, Fürstenried-West and Aubing-Süd offer cheaper prospects, where you can get between 51 and 56 square meters for the same price.
Increasing demand and lack of supply
The Munich real estate market continues to be dynamic despite the high prices. Loud Domino construction Demand is constantly fueled by new offers and investments. But the completion of new apartments is not keeping up at the same pace. In the coming years, 73.8 new apartments per 1,000 inhabitants would have to be built every year, but in fact only 11.8 completions were registered last year. This puts further pressure on already strained prices.
The influence of the demographic shift is noticeable: Munich is losing the 30 to 50 year old age group, but is gaining young adults who find the city attractive. This change brings both challenges and opportunities.
Price trends in the real estate market
In detail, it can be seen that the price per square meter for detached single-family houses is around 11,950 euros, while terraced houses currently cost around 8,600 euros. The development of property prices over the last 15 years is an astonishing 135%, despite a period of consolidation in the recent past.
The high prices have an impact on the household budgets of Munich residents. On average, residents have to raise an annual household income of 14.7 to get a 117 m² property in the city. It can be a cause for concern when housing expenses have such a concentrated impact on your financial situation.
Despite the challenges, Munich still has a lot to offer. With a high proportion of academics, a strong Industry 4.0 and equally solid future prospects, the city is well positioned to remain attractive to property buyers and investors in the coming years. What happens next? That remains to be seen - but one thing is certain: the real estate market in Munich remains an exciting endeavor.