Corona price driver: Munich rents continue to rise - home office is becoming increasingly important

The pandemic did not, as hoped, lead to an easing of the pressure on the Munich rental market.

On the contrary: what is most in demand now is living space with a balcony or garden - and space for the home office.

Munich - If you want to live in Munich, you need money above all - and more of it than ever. The situation on the already tense housing market is worsening. And gets a whole new dynamic in times of pandemics. Living space with a garden or balcony and space for a workplace have been much more in demand since the beginning of the Corona crisis. This is shown by the freshly printed rental market report published by the Immobilienverband Deutschland (IVD) on Monday. Accordingly, rents in Bavaria and Munich rose significantly in the past six months. For apartments as well as for houses. “The hopes that the pandemic would relieve the pressure on the rental housing market, which are sometimes growing, have not been fulfilled in the slightest,” explains Professor Stephan Kippes, head of the IVD market research institute.

Corona price driver: Munich rents continue to rise - home office is becoming increasingly important

At the beginning of the year the situation was different.

At that time, the broker association was able to observe the first effects of the Corona crisis.

It turned out that the rise in rental prices had been slowed down over the lockdown winter.

But the stagnation did not last.

"Since late spring, with lower incidence values, an increasing vaccination rate in the population and a positive labor market trend, the rental market has again gained momentum and price dynamics," explains Kippes.

Munich rental market: serious discrepancy between supply and demand

The discrepancy between supply and demand is serious. The latter has changed in Munich in the course of the pandemic: "Apartments are increasingly being examined for their home office suitability." Those who earn enough can now afford an additional study. Cheaper alternative: The home workplace is set up in a niche. Fresh air has also become more important: “There is also greater demand for apartments with balconies, terraces or a part of the garden.” Houses and green spaces have been very popular with people since the first Corona lockdown. According to the IVD, the changed priorities lead to more frequent changes of residence and the fluctuation among tenants is higher. All of this has its price, of course: rents in Munich have increased significantly and faster in the past six months.

Rents in Munich: houses also affected - expensive trend

Above all, the price screw is being turned in the case of houses that can be rented.

Compared to the spring, house rents went up by 3.5 to 4.1 percent.

It's not that bad with the apartments: in old buildings, tenants pay 2.2 percent more, in existing apartments 3.1 percent and in new buildings an even 2 percent.

All figures apply to so-called new contract rents.

A trend that tenants have to pay dearly.

In Munich and almost all major cities in Bavaria.

The only exception is Ingolstadt, where living has become cheaper.

According to the IVD, the reasons for this are the diesel crisis and structural change in the automotive industry.

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