Munich remains Europe's real estate leader: prices are rising steeply!

Munich remains Europe's real estate leader: prices are rising steeply!

Munich remains the uncrowned capital of real estate prices in Germany and all of Europe. With an impressive average price of 9,965 euros per square meter for apartments and 9,411 euros for houses, the Bavarian metropolis leads the ranking of the most expensive cities. This is shown by a current analysis based, among other things, on data from the Remax residential property price report, which looks at European markets, including Germany, Austria and Spain, to name just a few. Picture reports that the city of Vienna takes second place in the euro ranking, with prices of 6,762 euros per square meter for apartments and 6,778 euros for houses.

Hamburg real estate prices are in third place. On average, apartments here cost 6,124 euros per square meter, while the prices for houses are 6,038 euros. Berlin follows in fourth place with 6,278 euros per square meter for apartments and 5,354 euros per square meter for houses. Madrid and Linz share fifth place, with prices per square meter for houses in Madrid at 5,221 euros and for Linz at 4,796 euros.

Market development in Germany

Although real estate prices in Germany recorded a slight decline in 2024 - apartments fell by 5% and houses by 1% - there is an encouraging trend: the selling times for real estate have shortened by an average of 48 days. There are also signs of a recovery in the market in the last quarter of 2024. Hamburg in particular is characterized by rising prices per square meter, which indicates growing demand.

The market for condominiums showed almost stable development, with an increase of 0.3% in the period from April to May 2024. In the so-called “Big Seven” cities, which also includes Munich, four cities experienced price increases for condominiums of between 0.2% and 0.5%. However, the trends vary: in Berlin, Frankfurt and Hamburg there were also slight declines of -0.1% to -0.2%.

Price developments in detail

The purchase prices for single-family homes rose by 0.1% to 0.4% in Frankfurt, Cologne, Munich and Stuttgart, while prices are stagnating in Hamburg and declines are recorded in Berlin and Düsseldorf. Nevertheless, the overall trend in the German residential real estate market is rather positive, which is also reflected in a 1.9% increase in asking prices for condominiums nationwide. However, the actual purchase prices actually fell by -0.1%.

However, experts warn of possible market corrections as real estate prices have experienced repeated price corrections in recent years. Additionally, the supply of new properties remains limited due to geographic and regulatory restrictions, further fueling high demand. ISB Munich Real Estate highlights that the stability and forecasts for 2024 suggest that price increases could potentially occur again.

Overall, it remains to be seen how real estate prices will develop over the course of the year and what role national and global economic conditions will play in this.