Munich is a particularly attractive place to live, thanks to its many local recreation areas, its excellent infrastructure and rich cultural life. Demand for property at the centre of the city and in the catchment areas of its greater metropolitan area remains high. For several years now, Bavaria’s state capital has ranked among the most liveable cities in the world. “The ongoing excess demand has caused prices to rise steadily in 2018,” said Florian Freytag-Gross, Managing Director of Engel & Völkers Munich. 80 percent of buyers are German nationals. The remaining 20 percent come from the UK, Eastern Europe, the United Arab Emirates and China.
The very good and most desirable locations for freehold apartments in Munich include the classic districts of Altstadt, Schwabing, Lehel and Bogenhausen, all close to the park known as the Englischer Garten. In 2018, the top price reached here was 20,000 euros per square metre (2017: 17,000 euros). Compared with other cities across Germany, Munich is the clear frontrunner with an average price per square metre of 7,630 euros (average price per square metre in Germany 2,993 euros). In the market segment for detached properties, houses in the most exclusive locations of Schwabing, Bogenhausen and Harlaching are selling for as much as 20 million euros.
Munich’s property market has recorded constant growth for the past 15 years. Thanks to its geographical location in the centre of Europe and its many international companies, the city is a constant magnet for skilled professionals both from Germany and abroad. “Living space continues to be scarce and demand high. New development projects are highly sought after and fetch top prices. Existing properties also command high prices and are steadily increasing in value in all locations,” said Florian Freytag-Gross.
Further information about property prices in German cities can be found in the “Engel & Völkers Market Report on Residential Property in Germany 2018/2019” (in German).