Real estate prices in Munich are falling by almost seven percent while rents are rising - analysis and forecast

Real estate prices in Munich are falling by almost seven percent while rents are rising - analysis and forecast

According to a report by www.tz.de, Property prices in Munich have been skyrocketing for years, but since last year they have fallen by almost seven percent. But rents are rising. According to data from real estate banks, the decline in house and apartment prices continues, but rents continue to rise. In Munich, residential buildings and condominiums cost 6.8 percent less to buy than in the third quarter of 2022, but rents were 5.2 percent more expensive.

Impact on the real estate market in Munich

The current data suggests that the real estate market in Munich is on the move. The sharp decline in property prices of almost seven percent compared to last year shows that supply is exceeding the market, leading to a fall in prices. At the same time, demand for rental properties is increasing, leading to a 5.2 percent increase in rental prices. This trend could indicate that investors are increasingly focusing on rental properties instead of investing in purchasing real estate. This shift could impact the supply and prices of rental housing as demand increases while the availability of properties for sale increases.

Conclusion

The current developments on the Munich real estate market indicate a change in investment strategy. A significant drop in the price of properties for sale and a simultaneous increase in the price of rental properties could have a decisive impact on the market in the coming years. It is important to monitor these developments closely in order to make informed investment decisions.