Munich Property Prices 2026: Market Trends

Munich's property market entered 2026 in a state of cautious recalibration after several years of sharp price growth followed by a correction driven by rising interest rates. Average purchase prices for existing apartments across the city now sit at approximately EUR 7,800 per square metre, down from the 2022 peak of around EUR 9,200 but still among the highest in Germany. New-build prices remain elevated, with premium developments in Schwabing and Bogenhausen regularly exceeding EUR 12,000 per square metre.

The rental market tells a different story. Demand has remained stubbornly high, fuelled by continued in-migration from other German cities and EU member states, a strong local labour market anchored by BMW, Siemens, MAN and a growing technology sector. Average asking rents for a two-bedroom apartment in established inner-city neighbourhoods now range from EUR 1,800 to EUR 2,400 per month, with the Maxvorstadt and Glockenbachviertel commanding the highest premiums. The city's 2026 Mietspiegel (rent index) showed a 4.2 per cent rise in benchmark rents, the first increase in two years.

Supply remains the structural problem. Munich's geography, bounded by the Alps to the south and constrained planning rules in many quarters, makes it difficult to build at the scale the market requires. The city council approved a significant upzoning of several brownfield sites along the northern ring road in late 2025, and new residential towers near the Olympiapark are expected to deliver around 2,400 units by 2028. Whether that will meaningfully ease pressure on a market with a vacancy rate below 0.5 per cent remains to be seen.

For buyers, the current environment offers a window that was unavailable during the zero-rate era. Mortgage rates have stabilised in the 3.5 to 4 per cent range, and motivated sellers, particularly those who purchased near the peak, have become more willing to negotiate. Investors with a long horizon continue to regard Munich as one of the safest bets in European residential real estate, citing its economic diversification, world-class universities and consistently high quality of life.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.