Munich remains the real estate king: prices go beyond all limits!

Munich remains the real estate king: prices go beyond all limits!

Real estate prices in Bavaria and especially in Munich are reaching record highs. An analysis by “von Poll Immobilien GmbH” shows that 14 of the 20 most expensive real estate regions in Germany are in Bavaria. The situation is particularly striking in Munich, where, according to current data, average values ​​for property prices and rents have risen to historic highs. With average prices per square meter of 8,028 euros for apartments, Munich clearly leads the ranking. For comparison: Stuttgart, the lowest-rated city in the ranking, is significantly behind at 4,756 euros per square meter. Munich is also ahead when it comes to rents, beating the market at 19.62 euros per square meter.

The Munich district follows in second place with 7,424 euros per square meter and 16.90 euros for rents. Other districts in Bavaria that are in the upper echelons of the most expensive regions also deserve special mention:

• Miesbach: 7.301 €/m²
• Starnberg: 6.975 €/m²
• Ebersberg: 6.357 €/m²
• Garmisch-Partenkirchen: 6.206 €/m²

North Frisia is only in seventh place with 6,153 euros per square meter, the first district outside of Bavaria.

Reasons for the high demand

The reasons for these high prices are varied. Munich is not only home to seven DAX companies, but also offers a high level of leisure time, good schools and an excellent infrastructure. Despite regional price corrections in the last two years, which pose challenges for many property owners due to increased renovation costs, the market appears to be stabilizing slightly again or even increasing. Current data shows a price increase of 1.5% for apartments compared to the previous quarter, while terraced houses rose by 0.3% and apartment buildings by 2.1%.

The market analysis also shows a dramatic east-west divide in real estate prices in Germany, with prices in the western federal states continuing to be significantly higher than in many eastern federal states. The ongoing housing shortage in Bavaria remains a growing political issue, forcing numerous parties involved to take action.

Price development and forecasts

Current statistics show that the price per square meter for apartments in Munich has fallen by around 11% since the beginning of 2023 and is currently around 8,000 euros. However, over 15 years, this is an increase of 135%. In the area of ​​single-family houses, an average price of 11,950 euros per square meter is estimated, while terraced houses are around 8,600 euros and multi-family houses are around 6,350 euros. These figures were supported by evaluations of notarized purchase contracts from the Upper Bavarian Appraisal Committee, updated by the vdp real estate price index.

Developments on the real estate market are complex and are influenced by various factors, including location, year of construction, condition and equipment of the properties as well as their energy efficiency. For those interested, the online tool “GLASER ProValue” is available, which enables a free and easy assessment of property valuations.

In summary, the analysis reports tz.de that real estate prices in Bavaria, especially in Munich, are not only very high, but also present in a dynamic but challenging situation. The information complements the forecasts and analyzes from glaser-immobilienberatung.de, who have examined market developments in detail.