Financial expert reveals: Why luxury real estate in Munich remains unaffordable

Financial expert reveals: Why luxury real estate in Munich remains unaffordable

According to a report by www.tz.de, Bavaria will be in the midst of a real estate crisis in 2023. The whole of Bavaria is suffering from the effects, but one market segment remains unaffected by the falling prices: the super-premium sector. In this segment, purchase prices for luxury properties remain high, especially in and around Munich.

According to an analysis by the Immowelt portal, almost a third of the most expensive properties in Germany, both houses and apartments, were traded in Bavaria. An outstanding example is a villa in Stephanskirchen near Rosenheim, which is for sale for 29.5 million euros. Other luxury properties in Grünwald, Bogenhausen and Munich are also being traded at record prices.

Experts such as Christian Ehbauer from the Upmarket Properties agency explain this phenomenon by saying that super-premium properties operate outside the traditional market. The potential buyers are so wealthy that they can pay for their properties in cash, which means that sellers don't feel pressure to sell and don't have to give discounts. These luxury items are rarely sold, usually in special cases such as inheritance or divorce.

This development has only a small impact on the overall market, as the market share of such super luxury properties is at most one percent. Nevertheless, it shows that in the midst of a real estate crisis, certain market segments can continue to thrive. This illustrates the comparison between traditional real estate markets and niche markets in times of economic challenges.