Keyword: rental prices Title: Current market analysis: Rental prices in Munich continue to soar

Keyword: rental prices Title: Current market analysis: Rental prices in Munich continue to soar

Rental prices in Munich continue to rise, and a current market analysis gives little reason to hope for improvement. Stephan Kippes, head of the IVD market research institute, recently presented the current market report for Bavaria and expressed skepticism that the tense situation on the rental market would improve in the coming years.

The analysis showed that the high demand in large and medium-sized cities continues to increase, which is leading to increased pressure on rental prices. This trend is particularly noticeable in Munich. Compared to autumn 2023, rents across Bavaria continued to rise in spring 2024, albeit at somewhat weaker rates. In Munich there was a wide range of price increases, with new apartments recording the highest increase.

The range of rental prices in Munich is divided into various categories, with new apartments recording the strongest increase of 4.9 percent, followed by existing apartments, semi-detached houses and mid-terrace houses. The evaluation of the IVD market analysis for Bavaria shows that rental prices are increasing overall, with Munich continuing to occupy a leading position.

Expert Kippes attributes the tense situation on the Munich rental market to, among other things, the massive decline in construction activity. High financing and construction costs are placing a heavy burden on property developers, while demand is declining. The high population growth in Munich is expected to further exacerbate the problem. The increase in rents for existing apartments is also reflected in other major Bavarian cities, with Passau, Rosenheim and Bayreuth extending beyond Munich.