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Rent alarm in Munich: 10,000 new apartments needed every year
Rent explosion in Munich: Real estate expert shocked by the unimaginable situation in the city. Find out more about the drastic situation and rising rents.
Rent alarm in Munich: 10,000 new apartments needed every year
The situation on the Munich real estate market continues to deteriorate, and experts are warning of an unprecedented explosion in rental prices. By 2040, the population in Munich could increase by up to 1.8 million people, which brings with it an enormous need for living space. Over half of the residents already live in one-person households, which further exacerbates the housing shortage. The current annual completion of around 6,500 apartments is far from enough to cover demand.
The South Real Estate Association (IVD) warns of a drastic decline in construction activity due to sharp increases in material and construction costs. This means that rents are continually rising, especially in new buildings, where the price per square meter is now an average of 23.50 euros. The rental prices for semi-detached houses are particularly shocking, with an average rent of 3,850 euros. Experts describe this development as “actually unimaginable”.
Rising rental prices are forcing many tenants to look for cheaper living space or even move away from Munich. Cities like Augsburg are mentioned as escape points where rents are still affordable compared to Munich. However, the increasing demand for rental apartments is also leading to price increases in other Bavarian cities, although not to the same extent as in Munich. Overall, rental properties rose in price across Bavaria by 1.1 percent in a six-month comparison.