Price for 40 square meter apartment causes astonishment in Munich district: "Absolute madness"

No normal wage earner can afford that anymore: A one-room apartment in Munich Haidhausen is currently for sale for over one million euros.

There is hardly any sign of relaxation in the real estate market.

Munich - They are luxurious apartments: "Johannisplatz will define exclusivity in Haidhausen for a long time", is how Legat Living advertises four condominiums on Johannisplatz for sale in an online real estate portal.

The architecture is "representative and discreetly historicizing", the focus is on "bright and modern living" and the furnishings are of high quality.

Munich real estate market: "The prices are absolutely amazing"

But: That is also the price.

A city apartment with around 40 square meters of living space and a terrace costs 1,095,000 euros, and a three-room apartment with around 75 square meters costs 2,095,000 euros.

For the 132 square meter four-room apartment with a view over Johannisplatz you have to shell out 4.3 million euros.

The move-in date is expected to be in the summer of 2024.

"The prices are absolutely amazing," says Jörg Spengler, chairman of the Au-Haidhausen district committee.

“The people in the neighborhood don't benefit from it at all.

Unfortunately, this is the trend with many new buildings. "

Munich: Expert predicts further increases in prices for the real estate market

The apartments on Johannisplatz in Munich's Haidhausen district * will be in a prominent location opposite the church and right next to the Johannis Café, a cult pub. Now a house with super-expensive apartments - and with it gentrification that will further change the district? “The more you pay, the higher the demands, of course,” says Rudolf Stürzer from Haus und Grund Munich. He sees the development differently. On the one hand, owners naturally benefit when prices rise. “But it is regrettable that almost no one can now afford property to provide for retirement. That's a big problem. ”In Germany, the ownership rate is already very low. Stürzer does not expect the situation to change anytime soon:“Prices won't fall in the next ten to twenty years,” he predicts.

That is also the assessment of Stephan Kippes from the Real Estate Association Germany.

“The prices have risen consistently over the past ten years,” he explains.

And: “Corona has not stopped that.” The prices for the apartments on Johannisplatz “tend to be in the top price segment”, but it has become more expensive everywhere on the property market

Munich: Purchase prices are rising even faster than rents

According to IVD statistics, newly built condominiums in Munich * with a size of 80 square meters with very good living quality and in a very good location cost an average of 17,100 euros per square meter. In spring, the price per square meter was still 15,300 euros. The IVD rated the districts of Nymphenburg, Alt-Schwabing, Herzogpark, Bogenhausen, Haidhausen, Altstadt-Lehel and Ludwigsvorstadt-Isarvorstadt as very good locations. But the purchase prices have also risen for medium and good housing values. They have increased even more than rents in recent years. “The prices for building land and building materials are rising, and the capacities of construction companies are scarce,” explains Kippes. "It all plays together."

Added to this is the move to Munich and the low interest rates, adds Rudolf Stürzer.

And: “The consumption of living space per capita is increasing every year.

The home office boosts demand even further. ”