Munich: Real estate prices are skyrocketing – Bavaria leads the ranking!

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There is a lot of focus on Bavaria's real estate market: dramatic price analyzes show Munich as the most expensive region in Germany.

Munich: Real estate prices are skyrocketing – Bavaria leads the ranking!

The analysis of real estate prices in Germany reveals alarming figures. According to a study by “von Poll Immobilien GmbH”, 14 of the 20 most expensive real estate regions in Germany are located in Bavaria. Munich in particular stands out: the city has the highest prices per square meter at over 8,000 euros, the average purchase price is exactly 8,028 euros per square meter. For comparison: Stuttgart, the 20th most expensive region, has prices per square meter of 4,756 euros. In Munich, rental prices are also at the top at 19.62 euros per square meter.

In the Munich district, which takes second place, the price per square meter is 7,424 euros, while rents are 16.90 euros. Other Bavarian districts can also be found in the upper echelons of the price list. The Miesbach district follows with 7,301 euros per square meter and the Starnberg district with 6,975 euros. The Ebersberg district (€6,357/m²) and Garmisch-Partenkirchen (€6,206/m²) are also among the most expensive regions.

Price list of the most expensive regions

Place region Price (€ per m²) Rent (€ per m²)
1 Munich, Bavaria 8,028 19.62
2 Munich district, Bavaria 7,424 16.90
3 Miesbach district, Bavaria 7,301 13.81
4 Starnberg district, Bavaria 6,975 15.91
5 Ebersberg district, Bavaria 6,357 April 15th
6 Garmisch-Partenkirchen district, Bavaria 6,206 13.08

There are many reasons for the high prices in Munich: enormous demand, the presence of DAX companies, high leisure value and good schools and infrastructure. Nevertheless, there is a dramatic east-west divide in real estate prices in Germany, which makes the housing shortage, particularly in Bavaria, a political alarm signal. The price correction of 2022 and 2023 now seems to be fading into the background, while prices have been stabilizing or rising slightly for about a year.

Current developments on the housing market

Real estate prices in Munich show remarkable dynamics. In May 2025, the average price per square meter for apartments was around 8,000 euros. Detached single-family homes cost an average of 11,950 euros per square meter. Terraced houses and apartment buildings cost around 8,600 euros and 6,350 euros per square meter respectively. This data comes from an evaluation of notarized purchase contracts and was updated by the Upper Bavarian Advisory Committee.

Despite a decline in housing prices of around 11% since the beginning of 2023, the current price trend shows a positive development. Compared to the previous quarter (May 2025), prices for apartments rose by 1.5%, for houses by 0.3% and for apartment buildings even by 2.1%. However, in a 15-year comparison, Munich is still up 135%.

In view of these developments, the situation on the Munich housing market remains tense, with continued high demand and rising prices. These trends illustrate the challenges that politicians face in order to prevent a housing shortage in Bavaria. Further information can be found in the detailed reports from tz.de and glaser-immobilienberatung.de read up.