A luxury home: the cost of real estate in Munich continues to rise

Created: 08/04/2022, 13:45

By: Martina Williams

Expensive pleasure: Real estate has become virtually unaffordable for average earners in Munich.

© imago classic

The real estate madness in Munich continues: If you want to buy an apartment, you have to pay 15,000 euros per square meter - investors earn a lot of money.

Munich – Munich is an expensive place.

An analysis by the IVD Institute shows how much the prices for condominiums have risen in the past ten years.

Bogenhausen, Haidhausen, Lehel – condominiums are particularly expensive here.

But supposedly cheaper districts like Milbertshofen or Feldmoching are also increasing.

In a ten-year comparison, the Munich IVD Institute compared the costs of spring 2012 with those of spring 2022: This shows the price jump in the quarters.

Increase in Munich real estate prices per district in 10 years

Only in Harlaching and Solln did prices rise below 100 percent.

© IVD Institute

Own an apartment: 15,000 euros for one square meter in Munich

For example, the price per square meter in the Isarvorstadt was 5,500 euros in 2012; today it is 15,000 euros – that is an increase of almost 200 percent!

"Regardless of the continuously rising prices, demand will remain high in spring 2022," says Prof. Stephan Kippes, head of the IVD market research institute at the presentation of the new report for properties to be bought in spring 2022.

What does the expert advise Munich residents who now want to buy an apartment or house?

"Basically, one should consider that the real estate market is largely at its peak in terms of price," says Kippes.

"In this respect, you shouldn't buy at any price just because interest rates have risen a bit or because you want to invest money because the bank is threatening penalty interest - but wait if necessary."

Building is also becoming more expensive: costs for single-family homes have risen by more than 300 percent in 10 years

More facts from the new IVD report on properties to buy: The price spiral continues in Munich.

But the increases in the real estate market are more subdued.

In spring, inflation was 4.7 percent, in autumn 2021 it was still 8.7 percent.

In a ten-year comparison, the building land prices for detached single-family houses have risen sharply - by plus 310 percent.

The number of apartments released for construction in 2021 is expected to decrease by 24 percent compared to the previous year.

Building permits 2021: 7760 (preliminary calculation).

In Munich, costs are rising much faster than income

In March, inflation was 7.3 percent.

As a result, the price per square meter in Munich rose to an average of 9,500 euros.

Adjusted for inflation, the price is “only” 7950 euros.

The average income in Munich increased by 77 percent between 1995 and 2021.

The purchase prices for single-family houses, on the other hand, rose by 249 percent.

There is a new record for real estate sales: the sales volume across Bavaria was 72 billion euros in 2021.

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