One of Germany's most important metropolises, Munich, is one of the most sought-after megacities nationwide. The state capital of Bavaria is one of the most important economic centers in the state. Numerous large corporations are based here and a lot of investments are made every year. So it's no wonder that the price level is set high compared to other federal states. Anyone who wants to buy or rent an apartment in Munich is guaranteed to face a challenge and have to contend with a flood of competitors. The demand for real estate in the city and the district is still quite high. You can find out in the article what the current price landscape looks like, whether rental properties in Munich make sense and what market trends could influence this. We will also tell you whether it is worth buying property in Munich.
Rental properties in Munich: demand is increasing
The problematic housing situation in Munich has long been known: Since the city has established itself as one of the most important economic centers over the last 30 years, it has a great appeal. Families with children in particular have a difficult time in the big city. In order to fulfill their dream of a house or apartment with a contemporary layout and bright and spacious rooms, they usually have to do without the large garden or separate children's rooms. Singles also have to be willing to compromise. In half of the apartments in Munich only one person lives. Most of the time these are skilled workers who moved a few years ago in search of better jobs. For each small apartment with a living space of around 50 square meters, a balcony and a fitted kitchen, more than 100 applications are sent on the first day. Immigration together with rising prices are leading to a rent spiral that is currently unsustainable and continues to spiral upwards. Landlords, on the other hand, have the advantage of being able to choose the best candidate for their condominium. Here, for example, several criteria are taken into account. Anyone who can prove a fixed income, has a positive Schufa report and fits into the household has a good chance of getting a residential property.
Buying real estate in Munich: The investment pays off
The rent control actually only works to a limited extent: mainly because it does not apply to renovated buildings and new buildings. So anyone who invests in a rental property now can be confident that their investment will pay off. On the one hand, because the market is showing a positive trend, but on the other hand, because the high rents are encouraging more and more people to buy their own residential property. The low interest rates are another important argument in favor of buying. The more demand for properties increases, the more their purchase price increases. Investors can therefore make a profit in a foreseeable future. With one exception: If the rental property is sold again in a few years, this usually results in a loss. Buying and selling also creates other costs that need to be covered in the short term.
The price level in Munich is currently linked to several factors. The location and condition play a crucial role. In the meantime, buyers are also willing to compromise in this regard. As a result, rental prices are expected to continue to rise by 5 to 15% annually. It should be mentioned that the residential market in Munich and its clear price dynamics are rather location-specific. Since rental properties in Munich are traditionally scarce, the situation is getting worse. The house becomes more expensive the fastest. Finding a property is not an easy task. Single-family homes in centrally located districts such as Altstadt and Maxvorstad, as well as in popular surrounding districts such as Ludwigvorstadt, cost 5-10% more this year. The condominium follows with 3%. Terraced houses, which used to be unpopular, are now the only option that many people can afford.
Buy an apartment in Munich: The condominium as an investment property
A condominium is proving to be a very desirable alternative to a house. It comes into consideration not only as an own property, but also as a return property. The new, modern apartments meet the latest building requirements and are not subject to rent controls. That's why more and more real estate entrepreneurs are opting for residential buildings with apartments. For example, a former Osram site in Munich, where a new residential complex is currently being built, is particularly sought after. His address: Isarauen, Hellabruner Straße 1 Munich. There are 2 to 5 room apartments in more than 8 buildings. Nothing is spared for the comfort of its future residents: stylish floor coverings and wall designs create a contemporary and at the same time homely ambience. You can get more information about the project from living-isar de. The new construction project is definitive proof that even with a very limited housing supply, it is still possible to find offers that are really worthwhile. Good news for everyone who wants to buy an apartment in Munich.
