Real estate prices and location analysis Munich

Location analysis Investment market Munich

Real estate prices Munich 2020


Munich is associated with the Oktoberfest, Italian flair in coffee houses and beer gardens in the countryside, and investors can also discover interesting objects. If you look closely at investment properties, you will still find treasures that are worth buying, despite high square meters of prices.

Real estate prices Munich

Although Munich was voted “the most liveable city in the world” by a British magazine in 2018, it also made headlines with the highest rates of price growth in the real estate market. The Bavarian capital has been designated as the city most threatened by a real estate bubble in the world. Today, houses and land in Munich cost far more than double the level of 10 years ago. These prices result from a gross disproportion between supply and demand, as well as a stagnating housing construction in the past. Since 2017, the built and approved apartments in Munich have even been falling. At the same time, rents have increased by more than 40 percent on average over the past decade, mainly in terms of new rentals.

The city on the Isar River is not only a popular place to live because of its short distance from the Alps, but above all economically strong. The largest employers in the capital of the Free State of Bavaria are BMW, TU Munich, Stadtwerke München, MAN and Siemens. Other DAX companies based in Munich are attracting highly qualified personnel. As a result, the Bavarian metropolis has an uninterrupted influx of housing seekers, students and consumers. The vacancy rate for apartments in Munich has been only 0.2 percent for the past five years. For office space, the vacancy rate is only 2.4 percent, so that there is also an overhang of demand for commercial space.

Return on investment properties Munich

As a result of price developments, yields on residential, hotel, medical, office and commercial real estate have fallen in recent years. They are well below 4 percent for commercial properties and rarely exceed 2 percent for residential properties. Investors can also save tax on real estate.

In Munich, real estate prices vary considerably depending on the district, location and property. Extraordinarily price-intensive, because coveted, are properties in the following urban areas: luxury villas in Nymphenburg, apartments and student apartments in the Maxvorstadt, condominiums in Schwabing and Bodenhausen or shopping centers and apartments in Altstadt-Lehel. More affordable offers can be found in the surrounding area of Munich. There, the square meter price is in the reasonable range in relation to inner city locations. Good locations are Gräfelfing, Ottobrunn, Grünwald or Vatrstetten.

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E1 International Investment Holding GmbH has been active in the real estate business since 2007. The previous transaction volume is over EUR 2.4 billion with over 4,700 real estate transactions. E1 Holding is your answer to the real estate business. Get amazing investment deals when you buy a property and benefit from the sale.
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Ancillary costs of the real estate acquisition Munich

When buying real estate, additional additional costs have to be financed by the investor, in Bavaria these are particularly favorable. They amount to a total of 9.07 percent of the purchase price. This includes 1.5 per cent for the notary, 0.5 per cent for the land register entry, 3.5 per cent property transfer tax and 3.57 per cent cost for the broker. The latter correspond to the brokerage commission shared between buyer and seller.

Influence of Covid-19 on market development in Munich

Everyday life in Munich was severely affected by the Corona virus. The economic and financial consequences will not pass without a trace on the Munich real estate market. Nevertheless, there are no safe investment alternatives to real estate and the financing conditions are still excellent, so that after a short break further price increases for Munich properties are to be expected. Not every price is paid anymore, construction projects as well as the purchase of commercial real estate could be postponed for the time being. However, there can be no question of a nationwide real estate crisis in Munich.

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Real estate forecast Munich 2030

Munich is again likely to be by far the most expensive real estate location in Germany by far in 2030, with experts predicting prices per square metre will rise by 60 percent. The supply of suitable properties remains scarce. Immigration, rising birth rates and falling household sizes are price-driven. Property brokers, however, expect the rate of price uplift to slow down in principle. However, investors should not speculate on falling prices. More than ever, careful research and inspection of the objects is essential to avoid uneconomic investments. Long-term oriented investors will also find profitable investment properties in Munich and the surrounding area under these conditions.

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Purchase of Real Estate Munich

Purchase criteria Real Estate Munich

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Real estate prices analysis for 80 locations throughout Germany

Location analysis

E1 Holding offers location analysis for real estate for almost 100 cities nationwide in all federal states. Our well-trained experts for real estate and investments as well as off-market real estate in various locations and sizes take a professional and authentic look at the real estate market at the respective location. In doing so, we determine realistic and continuously updated real estate prices depending on the market situation as well as a corresponding real estate forecast. We are constantly expanding the list of alphabetically ordered locations and intensively expanding the data base for more and more cities. In addition to investors and investors with budgets of all sizes, our nationwide location analyses are also valuable for housebuilders when deciding on a location. Click here


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