Rents in Bavaria continue to rise: Munich at record levels

Rents in Bavaria continue to rise: Munich at record levels

Rental prices in Bavaria, especially in Munich, are rising continuously, with rents in the state capital reaching almost 20 euros per square meter. According to an exclusive analysis by the company Empirica, the average rent in Munich currently amounts to 19.39 euros per square meter. These prices are significantly higher than rents in other German cities such as Frankfurt, Berlin and Stuttgart. Even in smaller districts around Munich, rents are similar to those in other expensive cities.

Rental prices have risen significantly in recent years, not only in Munich but also in the surrounding area. Cities such as Fürstenfeldbruck, Dachau and Aichach-Friedberg have recorded huge rent increases of up to 68 percent in the last ten years. Increasing price pressure is causing more and more people to move to the suburbs, which further increases the demand for housing in these areas.

Lower Bavaria is also affected by strong rent increases, with regions such as the Freyung-Grafenau, Hof and Dingolfing-Landau districts recording increases of up to 87 percent. Despite these increases, rents in these areas are comparatively affordable at seven to nine euros per square meter. This leads to former residents of Munich moving to more remote areas and thus driving up the price increase.

Experts such as Roman Heidrich from JLL emphasize that the shortage of living space in Germany is largely due to the lack of new apartments. In order to stabilize rental prices, an increase in the attractiveness of new residential construction is considered necessary. A possible solution could be to reduce the VAT for new rental residential buildings from 19 to seven percent, which would make new construction significantly cheaper. Despite such proposals, tensions in the housing market remain as political and economic challenges prevent rapid relief.