Real estate prices vary significantly across Munich's districts, reveals a recent study, uncovering considerable price disparities.
Munich, the cultural hub and economic powerhouse of Germany, continues to be one of the most sought-after cities for real estate, despite some recent fluctuations in the market.
The city's residential sector is thriving, with steady price growth and high rental levels, particularly in premium properties. According to the latest reports, existing and new residential properties in Munich are expected to see an increase of around 15% over the next four years, with premium properties commanding prices of up to €20,000 per square meter.
Munich's rental market also reflects its premium status, with an average net rent of approximately €22.82 per square meter. While rental price increases have slowed, they remain positive, with a year-on-year nominal rise of about 3.4% and a quarter-on-quarter increase of 0.3% in Q2 2025.
The residential sector in Munich continues to attract strong international and domestic investment due to housing shortages, limited new completions, and robust rental demand. Multifamily housing is prominent, and premiums are maintained due to Munich’s economic strength and appeal.
However, there are significant differences between the various districts in Munich when it comes to real estate prices. Prime central districts such as Altstadt-Lehel, Maxvorstadt, Schwabing, and Ludwigsvorstadt-Isarvorstadt typically command the highest prices and rents due to their proximity to amenities, cultural sites, and central business areas. Outlying districts, like Neuperlach and Pasing, generally offer more affordable rents and prices but with lower demand and slower price growth.
Recent data shows that Neuhausen has the top property rent of 40.50 euros per square meter, while Riem is the cheapest district for tenants, with an average square meter rent of 18.80 euros for existing properties. The Old Town and Isarvorstadt have average square meter rents of 28.30 euros and 26.30 euros, respectively.
Interestingly, there has been a slight decrease in prices recently in Perlach, with the square meter price being 6,900 euros (existing) and 9,600 euros (new building) in the previous year. This decrease, however, does not seem to have significantly impacted the overall trend of rising prices in Munich.
Despite these trends, the Munich real estate market remains fragile, according to Thomas Aigner, CEO of Aigner Immobilien. Buyers have become more critical, and uncertainties and hesitation among them are still noticeable. However, the location and quality of the property play a greater role in the purchase price than in boom times a few years ago.
To stay informed about all important stories from the Isar metropolis, users can sign up for the Munich Newsletter. The real estate agency Aigner Immobilien has also recently released a market report on the Munich real estate market. The report provides a comprehensive overview of the current market trends and insights into the future direction of the market.
In conclusion, while there are slight fluctuations in the Munich real estate market, it remains a premium market with significant demand and rising prices and rents, albeit with some regional variation within the city reflecting local desirability and supply constraints.
Investors seeking opportunities in the finance sector may find appealing returns in Munich's housing market, particularly in the real-estate sector, given the steady growth and high rental levels, even in premium properties. The residential sector, attracting strong investments due to housing shortages and robust rental demand, is expected to increase by approximately 15% over the next four years, with prime properties commanding prices of up to €20,000 per square meter.
