Real estate markets in the Munich metropolitan region

John von Freyend Real EstateReal estate markets in the Munich metropolitan region

Category: Real estate markets in the Munich metropolitan region

Munich market house purchase
CategoriesReal estate markets in the Munich metropolitan region Munich Research

The right time to sell your house in Munich is now

The current developments on the real estate market show a clear picture: The time to buy a home is now. According to a new analysis by the German Economic Institute (IW) The purchase prices for real estate are rising again. In the fourth quarter 2023 The prices for apartments rose on average 0,8 percent and for houses around 0,6 percent compared to the previous quarter. Although the prices are still a little cheaper than last year, the trend clearly points to a recovery in the market. The price decline phase appears to be over, said IW economists Pekka Sagner and Michael Voigtländer.

The reason for this upward trend is this, that this time there is no oversupply of apartments, as has been the case at the end of past real estate cycles. Nationwide there is still a shortage of around 700.000 Apartments, especially in big cities. Despite the real estate boom, too little was built, and new construction has fallen by around half due to rising construction costs and interest rates.

The lack of living space leads to rising rents, the last one by just under 9 percent in new contracts have increased. At the same time, demand from property buyers is slowly returning, as many have gotten used to the higher building interest rates or their income has increased. This makes higher rates affordable again. This means one thing above all for prospective buyers: You have to act quickly.

The situation on the Munich real estate market is particularly surprising, where the prices for the most traded property are, the condominium in stock, since 18 steadily decrease for months. Despite increasing rental demand in a city, which annually up to 20.000 new residents recorded, the prices for this property category fall on average 13 percent. One reason for this is that current loan interest rates, the up to 4,5 percent and deter many potential buyers, to decide to purchase.

Despite these developments, the question remains, whether now is the right time, to buy a property. The average square meter prices for existing condominiums have been up since mid 2022 at about 13 percent decreased. This could be an attractive opportunity for potential buyers, especially in Munich, where the price per square meter is up to mid 2022 at average 9.475 Euro was and now up 8.290 Euro has fallen.

Given these developments, the question arises: To buy or not to buy? For those, who have the financial means, now could be the right time, to make a decision. The South Real Estate Association (IVD) assumes that, that the interest per year 2024 are expected to remain stable, What potential buyers should consider. In comparison, the square meter cost per year 1992 approximately 3.000 Euro, However, the effective annual interest rate for construction loans at that time was 9,71 percent.


CategoriesReal estate markets in the Munich metropolitan region

Tapping into real estate trends: Analyze market data using relevant graphics

The real estate market is constantly evolving, which is why it is essential for professionals in the industry, Stay up to date with the latest trends and insights. In a rapidly changing market, access to accurate and relevant data is critical to making informed decisions. But how can you effectively analyze and understand market data given the vast amount of information available? This is where graphics come into play. In this blog post, we will dive into and explore the world of real estate market data research graphics, how they can help you, to take advantage of the latest trends and gain valuable insights. the times are over, where you had to sift through endless spreadsheets and try, decipher complex statistics. With the power of visual representation, you can now analyze market data more intuitively and efficiently.Graphics have long been recognized as a powerful tool for conveying information. From eye-catching charts and graphs to interactive maps and infographics, these visual representations provide a clear and concise overview of complex data sets. By harnessing the power of graphics, real estate professionals can easily uncover patterns, Identify outliers and recognize emerging trends.Introduce yourself, You could quickly identify the neighborhoods with the highest rates of appreciation or pinpoint the areas, in which demand is increasing sharply. With the right graphics, you can visualize market data like this, that you can more easily identify opportunities and make data-driven decisions. No matter, whether you are a real estate agent, who wants to identify target markets, or an investor, who is looking for the next hot market, analyzing market data using relevant graphs is a crucial factor. In the coming sections, we will explore different types of graphs, which can be used for analyzing real estate market data. We will discuss the benefits of each type and provide examples, how they can be applied to real-world scenarios. So buckle up and get ready, Using the power of graphics for real estate market data research – your key, to stay ahead in the ever-evolving world of real estate.

The power of graphics when analyzing real estate market data

To stay ahead of the competition in today's fast-paced real estate market, requires access to accurate and relevant data. However, with the vast amount of information available, analyzing and understanding market data can be a daunting task. This is where graphics come into play. By using visual representations such as diagrams, Graphics and infographics allow real estate professionals to effectively analyze market data and gain valuable insights. Graphics have long been considered a powerful tool for conveying information. They provide a clear and concise overview of complex data sets and make it easier to identify patterns, Outliers and emerging trends. Instead of searching through endless spreadsheets and trying, decipher complex statistics, Professionals can now rely on visually appealing graphics, to quickly understand the market landscape.A type of graph, which is commonly used when analyzing real estate market data, is the line chart. Line charts are ideal, to track trends over time. For example, if you graph average home prices in a particular area over several years, you can easily recognize, whether prices rise or fall. This information is invaluable to both buyers and sellers, because they help them, to make informed decisions about it, when they enter or exit the market. Another useful graphic is the bar chart. Bar charts are great for comparing different categories or variables within a data set. For example, if you want to compare average rental prices in different parts of a city, A bar chart can visually represent this information in an easy-to-understand format. By analyzing the heights of each bar you can quickly identify, which neighborhoods experience higher or lower rental prices. In addition to line charts and bar charts, pie charts are also often used when analyzing real estate market data. Pie charts are ideal for showing proportions or percentages within a data set. For example, if you are distributing property types (with. B. Single-family homes, Condominiums, Apartments) want to understand in a particular area, A pie chart can provide a visual representation of the breakdown. This information can be valuable to investors, who want to identify market trends and target specific property types. Infographics are another powerful tool for presenting real estate market data. Infographics combine different graphics, Texts and images, to provide a comprehensive overview of complex information. They are visually appealing and can effectively convey key insights in a concise and engaging way. For example, an infographic could present the top neighborhoods with the highest appreciation rates, along with additional data such as average property prices and rental yields. To summarize, that analyzing real estate market data using relevant graphics is essential, to stay ahead in today's competitive market. Graphics provide a visual representation of complex data sets, making it easier to identify trends, patterns and opportunities. No matter, whether you are a real estate agent, who wants to identify target markets, or an investor, who is looking for the next hot market, Harnessing the power of graphics in market data analysis is a critical factor. By using line graphs, Bar charts, You can gain valuable insights from pie charts and infographics, that will help you, to make informed decisions and benefit from the latest trends in the ever-evolving world of real estate.

Use of infographics for concise data presentation

In today's fast-paced world, attention spans are shorter than ever. It is crucial when presenting real estate market data, Capture your audience's attention quickly and succinctly. This is where infographics shine. Infographics combine visual elements like diagrams, Graphics, Icons and images with minimal text, to present complex information in an easy-to-understand format. They are visually appealing and captivate the viewer, by breaking down information into bite-sized pieces.One of the main benefits of using infographics to present data is their ability, simplify complex concepts. By condensing large amounts of information into visually appealing graphics, infographics make things easier for the viewer, Understand important findings at a glance. This is particularly important in the real estate industry, where market data can be overwhelming and difficult to interpret. Another advantage of infographics is their versatility. They can be used in different formats, for example for printing materials, Websites, Social media posts and presentations. This flexibility allows real estate professionals, reach a wider audience and communicate their message effectively across different platforms. Additionally, infographics are highly shareable. In today's digital age, social media platforms play a significant role in disseminating information. Infographics are more likely to be shared and go viral than long text-based articles or reports. By creating visually appealing infographics, that highlight important market trends or insights, Real estate professionals can increase their online visibility and attract potential customers or investors. When designing an infographic for data presentation, it is important, to keep the design clean and uncluttered. Use colors strategically, to highlight and ensure important information, that the text is concise and easy to read. The visual hierarchy should direct the viewer's attention through the infographic and lead him from one important point to another. In summary, it can be said, that infographics are a powerful tool for presenting real estate market data in a concise and engaging way. By condensing complex information into visually appealing graphics, infographics make it easier for viewers, quickly understand important findings. Their versatility and shareability further increase their effectiveness in reaching a wider audience. Real estate professionals, that leverage the power of infographics in data presentation, will stand out from the competition and communicate their message effectively in today's fast-paced digital world.

Conclusion: Harness the power of graphics for data research in the real estate market

To stay ahead in today's competitive real estate market, is access to accurate data and ability, to analyze them effectively, necessary. Graphics play a crucial role in this process, by providing visual representations, that simplify complex information.By using line graphs, Bar charts, Pie charts and infographics can provide real estate professionals with valuable insight into market trends, -patterns and opportunities to win. These graphs enable intuitive and efficient analysis of market data and enable professionals, to make informed decisions.The power of graphics lies in their ability, Present data clearly and concisely. Instead of searching through spreadsheets and trying, decipher complex statistics, Professionals can rely on visually appealing graphics, to quickly understand the market landscape. Whether it's tracking trends over time with line charts or comparing variables with bar charts, graphs provide a visual overview, which simplifies the analysis process. Infographics go one step further, by condensing large amounts of information into visually appealing designs. By combining diagrams, Graphics, Using icons and images with minimal text, infographics present complex concepts in an easy-to-understand format. They captivate viewers and provide important insights at a glance.Real estate professionals, that utilize the power of graphics in market data research, gain a competitive advantage. You can spot emerging trends, Identify opportunities and make data-driven decisions with confidence. No matter, whether you are a real estate agent, who wants to identify target markets, or an investor, who is looking for the next hot market, Analyzing market data using relevant graphics is essential. In summary:, that you should not underestimate the power of graphics when analyzing real estate market data. Make use of line charts, Bar charts, Pie charts and infographics, to gain valuable insights, that will help you, to confidently navigate the ever-evolving world of real estate. Stay up to date, by leveraging real estate trends by analyzing market data using relevant graphics
CategoriesReal estate markets in the Munich metropolitan region Munich

New opportunities on the Munich real estate market: Falling prices present attractive opportunities for buyers

The real estate market in Munich, which was once known for its rising prices, experiences a pleasant change. Current data from the real estate umbrella association IVD Süd shows a significant decline in property prices in the Bavarian capital. This development opens up new opportunities for potential buyers and creates a dynamic environment on the Munich real estate market.

A paradigm shift in the market

For decades, prices for Munich real estate have doubled every seven years, driven by the low key interest rate. But with the challenges of the pandemic and interest rate increases by central banks, market events began to change. since autumn 2022 we are experiencing a paradigm shift: The prices for apartments and houses in Munich are falling, and in all positions and qualities. This creates a new reality in the city's real estate market.

Opportunities for buyers and investors

Falling prices present an excellent opportunity for buyers, to acquire attractive properties. The current price reductions of 5 until 5,4 percent for existing properties and even 6,9 percent of new apartments make purchasing real estate in Munich more affordable than ever. Potential investors can now invest in high-quality real estate at a lower price and at the same time benefit from Munich's attractive location and infrastructure.

Adaptation and optimism

Sellers and market participants are adapting to these new market conditions. Adjusting the price expectations is crucial, to meet current requirements. This opens up new opportunities for the real estate market: innovative concepts, Energy-saving new buildings and future-oriented renovations are becoming more important and create a dynamic offer for buyers.

Outlook for a promising future

The coming months promise a positive outlook for the Munich real estate market. The falling prices and the adaptability of market participants create a dynamic and opportunity-rich atmosphere. Buyers can look forward to attractive offers, while sellers have the opportunity, convince through innovative approaches and creative solutions.

The Munich real estate market is flexible and future-oriented. Current developments not only offer room for optimism, but also for new opportunities and exciting investments in the future of this vibrant city.

residential building munich
CategoriesLaw & regulations Munich

Ban on conversion into condominiums in Munich & region decided

The Free State of Bavaria leads to 01.06.2023 a conversion ban for rental apartments. It applies to 50 Municipalities whose housing market is classified as tight. In addition to the state capital Munich, the following cities fall: Dachau, Fürstenfeldbruck, Germering, Puchheim and Grafing, as well as the municipalities like Eching, Unterfoehring, Her, Höhenkirchen-Siegertsbrunn, Unterhaching, Kirchseeon, Markt Schwaben and Münsing.

Houses with up to 10 residential units.

The prohibition on conversion is initially limited to 31.12.2025.

control real estate
CategoriesReal estate markets in the Munich metropolitan region

What taxes are incurred when selling a property

There is no tax per se when selling a property, be it an apartment or a house, if the property used exclusively became. If the property was used for residential purposes in the year of sale and the two preceding calendar years (§ 23 Income Tax Act) this also applies (3 year period).

This information does not constitute tax advice and cannot replace it. Please contact a tax advisor to assess your circumstances.

Definition own residential purposes: The property itself must. be occupied by the family. From a tax point of view, your own children belong to the family as long as you receive child benefit. If use by other relatives has taken place, does not count as part of your own residential purposes.

Should the Property sold by a company become, It must be checked whether it is a partnership such as. a GmbH & Co. KG (fiscal transparency) or a corporation (e.g. GmbH) takes place.

In addition, the so-called. 3-Object boundary relevant.

If the property is inherited, From a tax point of view, you follow in the footsteps of the testator and take over theirs “speculation period”.

Die speculation period (§ 23 Income Tax Act) amounts to 10 Years. After this period, a profit from the sale is tax-free.

real estate market munich
CategoriesReal estate markets in the Munich metropolitan region Research

2023/03: Munich real estate market – current rental prices and purchase prices and its consequences

In the residential segment, Munich is the most expensive real estate market in Germany, be it the rental market or the investment market.

Current figures for 4. quarter 2022:

  • new building, Average: 21,37 USD/m² (Q4:2022: 20,74 corresponds to EUR/m²: ca. +3%)
  • old building, Average: 17,77 USD/m² (Q4:2022: 17,74 corresponds to EUR/m²: ca. +0,2%)

The growth momentum continues, especially in new buildings. There are various reasons for this:

  • New buildings are not bound by the rent index.
  • New buildings usually have. about the best energetic standards.
  • Existing tenants often remain in their apartments, since they are from a lower (old) benefit rental level, this prevents you from changing and getting to the current rent level with a new contract.

Munich real estate market: buying and selling

The historically sharp rise in interest rates in a very short time is leaving a strong mark on the Munich real estate market. In recent years, sellers have been able to determine the transaction, the market has increasingly turned into a buyer's market.

In the market for new construction real estate the price of average 9.840 USD/m² (Q3/ 2022) on 9.410 USD/m² (Q4/2022) dropped.

The situation is similar with existing properties. Here the average price fell from 7.790 USD/m² (Q3/2022) on 7.730 USD/m² (Q4/2022) please.

Outlook real estate market Munich

  • In particular, developments in the financing market will have a significant impact on future developments.
  • Living space in the Munich metropolitan region will be subject to strong demand due to demographic developments and net migration
  • Due to interest rate developments, buyers are pushing into rental markets, which additionally fuels the demand for housing for rent.
  • Many construction developments were stopped or canceled last year. We expect that to be the end 2023 / Beginning 2024 Due to the lack of completion of these projects, the demand for living space is extremely increased and it may lead to further state / municipal interventions.
CategoriesReal estate markets in the Munich metropolitan region

apartment rents are rising, property prices fall: Which strategy do I implement??

About 10 For years, prices only knew one way, up. Triggered by the war in Ukraine and its consequences for inflation, central banks around the world have massively increased interest rates – there is no end in sight to further increases in key interest rates. What does this mean for real estate investors?

We advise you on the question of whether a sale makes sense as an owner or in the case of an investor, how and whether real estate investments are to be valued – We are looking forward to your message!

CategoriesMunich

PALFINGER AG develops office- and administration building in Poing

The north-east of Munich is and remains one of the most exciting areas in the Bavarian capital. Many location advantages lead to optimal conditions for living and business:

  • Course of the A9
  • Extension of the A94
  • Proximity to the airport
  • Extension of the S-Bahn (Neufahrn curve, Erdinger ring closure, S-Bahn expansion, Walpertskirchener Spange)

Dies hat u.a. also PALFINGER AG, a listed technology- and mechanical engineering companies. Hydraulic crane supplier- and lifting solutions, an office convinces of this- and administration building with boarding house in Poing. The building is to be built on the former Océ car park on Gruber Strasse in Poing.

real estate neuburg danube
CategoriesNeuburg/Donau

A portrait of the real estate market in Neuburg an der Donau

In our series “Real estate markets in the Munich metropolitan region” we present today the former residential city Neuburg on the Danube in front.

Neuburg an der Donau is a large district town with the administrative seat of the district of Neuburg-Schrobenhausen. As the name suggests, the city lies directly on the Danube, North-east of Augsburg and west of Ingolstadt. 1505 As a result of the Landshut War of Succession, the Wittelsbach Duchy of Palatinate-Neuburg came into being with Neuburg as the residence city. Today the city has around 30.000 resident (the district scarce 100,000 resident), the castle from that time has been preserved with its beautiful old town.

Districts in Neuburg an der Donau

Neuburg is divided into the following municipalities, some of which have a village character:

  • Altmannstetten (Dorf)
  • elimination (wasteland)
  • Bergen (Pfarrdorf)
  • Bittenbrunn (Pfarrdorf)
  • Bruck (Dorf)
  • citizen vague (Weiler)
  • Eulahof (wasteland)
  • Feldkirchen (Dorf)
  • Forsthof (forest house)
  • Gietlhausen (Dorf)
  • Gnadenfeld (wasteland)
  • Grünau (Schloss)
  • Hardt (Dorf)
  • Heinrichsheim (Dorf)
  • Hessellohe (Dorf)
  • Joshofen (Pfarrdorf)
  • Laisacker (Kirchdorf)
  • Marienheim (Pfarrdorf)
  • Maxweiler (Dorf)
  • Neuburg a.d.Donau (main place)
  • Ried (Pfarrdorf)
  • Rödenhof (Dorf)
  • Rohrenfeld (Gut)
  • Rothheim (wasteland)
  • seesand (Kirchdorf)
  • Zell (Pfarrdorf)
  • Ziegelau (wasteland)
Developments in the Neuburg an der Donau real estate market in the supra-regional environment

The proximity to the A9 via the Manching driveway (Direction Munich and Nuremberg), the federal road 16 (B16) but in particular the proximity to Ingolstadt is formative for Neuburg. The largest national employer is the automobile manufacturer Audi, which brings a lot of economic power to Neuburg, be it directly or indirectly via suppliers such as the seat manufacturer Faurecia, who is based in Neuburg. The air force base in Neuburg-Grünau, consisting of an airport and barracks, also makes a positive contribution. But local companies such as. Saint-Gobain Oberland (Glass products) or the Neuburger Milchwerke are larger, resident employers.

The districts in the east, such as Heinrichsheim, have benefited from the location in the direction of Ingolstadt for many decades.

Economically relevant key data for the real estate market in Neuburg an der Donau
The purchasing power 2021 with approx, 106 is above the national average (100), however below the Bavarian value of approx, 108 and Ingolstadt with approx. 109. Furthermore, the Neuburg knows a positive population development, until 2036 with approx. 104.000 forecast for the district. This is one of the most important key figures, especially for the housing market.

Munich airport real estate
CategoriesFreising

Basic resolution on the approval process for the concert arena at Munich Airport

The Olympic Hall with its capacity of over 15.000 Places will probably soon have competition. The city council in Freising makes a decision in principle for the approval process for the new MUCcc building, an event/concert arena near Munich Airport 20.000 can accommodate visitors. The JV partners behind the project are KGAL, based in Grünwald, and entrepreneur Lorenz Schmid from Freising. The costs are estimated at approx. EUR 300 Mio. scheduled.