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.