Landshut real estate market at a glance

From insider tip to real estate hotspot

The city of Landshut – located just 70 kilometers northeast of Munich – looks back on a rather exciting recent history. In the early to mid-1990s, Bavaria's historic capital experienced a real estate boom. Investors hoped for significant growth rates thanks to its proximity to the then-new Munich Airport in the Erdinger Moos.

The hoped-for population increases initially failed to materialize, and property prices subsequently corrected downwards. Since the mid-2000s, the tide has turned. The "airport effect" arrived in Landshut about 15 years late, and the city has enjoyed steady population growth ever since.

Landshut also benefits from a whole host of other locational advantages. Landshut is very well connected to private transport via several federal highways and the A92, and public transport connections are also excellent. With BMW AG and its suppliers, Landshut has a solid employer base.

The historic flair of Landshut's old town offers a high quality of life. Life here is tranquil, almost like a family, close to Munich, yet far from the daily hustle and bustle of a city of millions. Perfectly fitting for this is the fact that every four years, Landshut hosts the world's largest medieval festival: the "Landshut Wedding."

Market Development

The real estate market in the Lower Bavarian capital is prospering. The city of Landshut has undergone a remarkable transformation, both in the eyes of investors and in the perception of homeowners. While Landshut was still considered part of the "Munich commuter belt" at the end of the 1990s, it now presents itself as a genuine alternative.

This is not only due to the fact that Munich Airport is faster from Landshut than from the state capital, but above all to the city's outstanding residential quality. Landshut offers a large, medieval, livable old town and large, high-quality residential areas at prices that are still quite attractive by regional standards.

It is also noteworthy that purchase prices and rental prices for properties have increased roughly in parallel in recent years. This testifies to a stable real estate market.

The Most Desired Locations

The question of the best locations in the Landshut urban area can certainly become a question of faith. Even though there are already numerous good locations, there are essentially three philosophies.

First, there are the venerable mountain locations: Hofberg, Annaberg, Alter Moniberg, Englberg, and, in the second row, Birkenberg, Achdorfer Berg, and Klausenberg. We are seeing a renaissance here. Even if the mountain locations seem too strenuous or too steep for some property buyers, living in Landshut's mountainous area carries a clear prestige factor.

Second, there is Landshut's Old Town. This is currently experiencing a significant influx of residents – simply because it's convenient to live there. This is helped by the fact that the city of Landshut has designated the Nikola district and some parts of the old town as redevelopment areas with corresponding tax advantages.

Landshut's western district, Mitterwöhr, and Münchnerau are equally in demand. There have been significant price increases here in recent years, due to the scarcity of supply, the constantly improving infrastructure, and the perceived convenience of the "non-mountain location" along the Isar River.

The Landshut Area

The area surrounding the city of Landshut separates the wheat from the chaff. Altdorf, Eugenbach, and Ergolding remain in demand, although the restriction for Ergolding is: "Only traffic-calmed areas, please!"

The southern district is also enjoying growing demand. In the north, the ecological model community of Furth near Landshut, along with the neighboring communities of Arth and Pfettrach, is considered particularly popular.

Other classics are the communities along the old B11 road towards Munich. For example, Tiefenbach, Ast, Vilsheim, Viecht, Weixerau, and Buch am Erlbach are considered comfortable residential areas.

Of course, the Landshut area also has more challenging locations. Locations that could be affected by a possible third runway at Munich Airport are currently less in demand, as are locations along the route of the B15neu, which is currently under construction. The immediate vicinity of the Isar II nuclear power plant is also not among the favorites – even though it is scheduled to be shut down by 2022 at the latest. Those thinking long-term should definitely consider this. Is that the case? Once the Isar II nuclear power plant is history, a real estate investment there could well be worthwhile from today's perspective.

Outlook

The real estate market in and around the Lower Bavarian capital of Landshut has developed brilliantly in recent years. We continue to expect healthy growth in rents and property purchase prices. There are ample prospects. In our view, the classic locations in the Landshut city area and the surrounding area represent particularly worthwhile investments.

Even if comparatively moderate purchase prices are attractive, you are well advised to avoid less attractive urban locations (e.g., "North of Wolfgang," the industrial area/Porscheviertel, etc.) and the aforementioned problems in the surrounding areas. Overall, real estate investments in and around Landshut, selected with expertise and care, should develop excellently in the long term.

Are you looking to sell your property in Landshut and the surrounding area, or would you like to find out about its current market value?

We are happy to assist you with our experienced real estate agents.