Munich real estate market: luxury prices despite falling overall trends!

Munich real estate market: luxury prices despite falling overall trends!

The real estate market in Munich remains a highly explosive topic. Luxury home prices rose to record highs in 2024, even as overall prices fell slightly, according to a new real estate market report released today. The study provides particularly insightful insights into the “Munich in Extremes” section, which highlights the exclusive sales of single-family homes and condominiums. Augsburger Allgemeine reports on a remarkable sale: a single-family home in Herzogpark, Bogenhausen, changed hands for 47.2 million euros, one of the highest sums ever paid for a property in Munich.

Herzogpark is known for its impressive villas that promise an exclusive quality of life. A villa with 18 rooms and 812 square meters is currently for sale for just under 25 million euros. Another villa with park views and an area of ​​336 square meters is offered for 10.5 million euros. In addition to the luxurious single-family homes, there is also an expensive semi-detached house that was sold for around seven million euros, which corresponds to a price per square meter of 31,250 euros.

Market development and price analysis

The urban real estate market analysis records all purchase contracts in Munich and is considered an important document on market development. Despite the decline in average prices compared to the previous year, living in the Bavarian capital remains expensive. The prices for residential building land and new condominiums have fallen by around seven percent, while resold condominiums are around two percent cheaper. This shows a clear trend that - as the analysis of Glaser real estate advice explained – is strongly influenced by demand and the influx into the city.

Property prices vary considerably depending on location, year of construction, condition, amenities, energy efficiency and listed building status. On average, apartments in Munich currently cost around 8,000 euros per square meter. For detached single-family homes the price is around 11,950 euros, while terraced houses are around 8,600 euros and multi-family houses are around 6,350 euros per square meter.

Price trends and regional differences

According to the data collected so far, apartment prices in Munich have fallen by around 11 percent since the beginning of 2023, from an average price of 9,000 euros to 8,000 euros per square meter. However, the price trend shows that prices are rising again last year, with an increase of 1.5 percent for apartments and 0.3 percent for houses in May 2025 compared to the previous quarter. In a long-term 15-year comparison, prices have risen by an impressive 135 percent overall, despite the current price dip.

Although prices in the Munich urban areas have fallen slightly, districts such as Munich, Amberg-Sulzbach, Passau, Landshut and Ingolstadt have shown an increase of more than twelve percent. Meanwhile, buyers in Garmisch-Partenkirchen, Neu-Ulm, Berchtesgadener Land and Bamberg are seeing falling prices.

Real estate prices in Munich remain a hotly debated topic, both for buyers and investors, and reflect the changing trends of the market.