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Strong demand is causing real estate prices in Munich to skyrocket

2021-11-03T07:37:42.736Z


Real estate prices in Germany continue to rise - so also in Munich. A market report provides information on which prices apply in the districts.


Real estate prices in Germany continue to rise - so also in Munich.

A market report provides information on which prices apply in the districts.

The Bavarian capital of Munich is not only known for its many sights, such as the Frauenkirche or the English Garden and its picturesque old town - it is also one of the most important business locations and one of the most important transport hubs in Germany. This also makes the Munich metropolitan region one of the most sought-after residential areas. Real estate * does not stay on the market for long, as the recently published market report for residential real estate in Munich and the surrounding districts by VON POLL IMMOBILIEN shows. The price development [1] in the current premium and trend locations in the analyzed period from 2012 to 2021 is also pointing upwards.

“The Munich metropolitan region is an attractive business location. But residents also appreciate the quality of life, the economic growth and the cultural history of the city.

Interest in living space in this coveted region will not decrease in the future either, but will continue to increase

. This development is having an increasing impact on the time it takes to market real estate, ”says Daniel Ritter, managing partner at VON POLL IMMOBILIEN.

Overall, the average marketing time [2] for residential real estate in Munich has been reduced by around half in both the house and the apartment segment.

In both segments, the offer duration between the fourth quarter of 2018 and the second quarter of 2020 remained stable at 90 to 120 days.

In the second quarter of 2021, single- and two-family houses only stayed on the market for around 57 days, while the average for condominiums was 63 days.

A similar development can also be seen in the number of offers [2].

Between the fourth quarter of 2018 and the fourth quarter of 2020, between 675 and 956 single and two-family houses per quarter and between 4,092 and 4,828 condominiums per quarter were for sale, in the second quarter of 2021 there were only 393 houses and 3,644 apartments.

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Purchase prices for residential real estate are rising continuously

In 2020, a total of 1,221 houses were sold in Munich.

This corresponds to an increase of 4.3 percent compared to the previous year.

The average purchase price paid for a one- and two-family house has also risen.

Prospective buyers currently have to reckon with around 1,470,106 euros for a house - 4.3 percent more than in 2019.

This means that Munich leads the average price comparison of the top 8 German cities in the residential segment and is also the only city to exceed the million mark. In 2020, there were a total of 9,846 transactions in the residential segment, a decrease of 5.1 percent compared to the previous year. The average purchase price for a condominium climbed 8.4 percent to 579,931 euros. Compared to 2012, a strong upward trend can be observed here -

the average price rose by 100.9 percent overall

.

A similar development can be seen in square meter prices for house purchases. Interested parties currently pay an average of € 9,824 / m2 for a new apartment - this corresponds to a price increase of 81.1 percent compared to 2012. The increase is even more pronounced for existing apartments. At € 8,151 / m2 in 2020, the average prices in this segment climbed by 105.2 percent in the same period. In the residential segment, too, Munich leads both the square meter price ranking and the average price comparison of the top 8 cities.

"Even if the transaction volume is slightly weaker compared to 2019, demand and price development remain at a high level," says Volker Stich, branch manager of the VON POLL IMMOBILIEN shops in Munich and Munich-Bogenhausen.

And further: “

Munich is still one of the most popular locations in the country

.

The ideal combination of tradition and modernity attracts a large number of different buyer groups.

Due to the positive population forecast, it can be assumed that the demand for residential property will continue to rise. "

Current premium and trend locations

Munich city center and its surroundings are among the most sought-after locations. Bounded by the Altstadtring, the

Lehel district

- with Marienplatz as the focal point - forms the center of Munich. Here buyers can expect residential buildings that were built in the neo-baroque style as well as in the neo-renaissance style. The historical structure gives the Lehel a unique charm and at the same time makes it one of the most beautiful areas of the city. For a condominium in this premium location, buyers have to reckon with square meter prices of up to 18,000 euros, with collector's properties as much as 22,000 euros / m2.

In addition to the premium locations in the center of the city, the former student and artists' quarter Glockenbach is also one of the trend locations in Munich,

” reports the expert Volker Stich.

And he continues: “The region offers a large number of cafés, restaurants and bars and thus attracts a young, dynamic audience.

The elaborately refurbished old buildings in the district are extremely popular with prospective buyers. ”Condominiums here cost an average of € 13,000 / m2, in individual cases prices per square meter of up to € 17,000 are possible.

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To the north of the old town,

Maxvorstadt

has developed

into a top location in recent years. Because of the university located there, things are very lively in the district - the strong demand for living space also has an impact on property prices here. Apartments with square meter prices in the four-digit range can rarely be found in this trendy district. Rather, prospective buyers pay between € 12,000 / m2 and € 16,000 / m2 for one of the coveted new build properties.

The

Berg am Laim

district in the east also

has a lot to offer. “Potential buyers particularly appreciate the proximity to the center and the excellent transport links. In addition, Berg am Laim is one of the few districts of Munich where you can live both close to the center and comparatively cheaply, ”explains Walter Zangl, branch manager at VON POLL IMMOBILIEN in Munich-East. One of the most popular residential areas here is the cockchafer settlement. A condominium in Berg am Laim currently costs between € 7,000 / m2 for an old building and € 10,000 / m2 for a new building, depending on the age and location. For one of the coveted single-family houses in the eastern part of the district, buyers can expect up to 2.2 million euros.

* Merkur.de is an offer from IPPEN.MEDIA.

[1] The data basis of the analysis is based on the current figures of the expert committee for property values, i.e. the number of transactions actually carried out on the residential property market for the years 2012 to 2021 and Empirica Regio.

[2] The information on the marketing time of real estate as well as the number of offers are based on the evaluations by GeoMap.

Source: merkur

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