Giesing Tops Munich’s Rental Yield Rankings for Investors

Investors looking to maximise rental returns in Munich’s heated property market should look to Giesing, which has quietly emerged as the city’s top performer for rental yields this summer, according to fresh data released this week by ImmoScout24.

In a period marked by rising mortgage costs and tighter lending rules across Germany, attractive rental yields are high on every landlord’s wish list. Property prices remain stubbornly high in the Altstadt and Lehel, pushing would-be investors further afield in search of better returns. Giesing, just south-east of the city centre and straddling the lines of both Untergiesing and Obergiesing, is now drawing the sharpest attention not only from buy-to-let investors but also savvy first-time buyers priced out of more central locations.

Local Draws: Community, Connectivity, and Affordable Prices

Maximilianstraße and Sendlinger Tor continue to command Munich’s highest property prices, but over the last year, the bulk of new property transactions by investors have shifted to Giesing. The transformation is visible along Tegernseer Landstraße, where new apartment blocks sit next to long-established Turkish bakeries and craft beer bars like Giesinger Bräu. The area’s popularity with students attending Hochschule München and young professionals commuting via the U2 and S3 lines has been a key factor in strong rental demand.

Major employers, including the BSH Hausgeräte headquarters on Hochstraße and the rapidly expanding student housing developments adjacent to the Grünwalder Stadion, are helping fuel the shift. The recent overhaul of Perlacher Forst’s transport links and the launch of the municipal StartWohnen initiative have also nudged investor interest further east, but it’s Giesing’s mix of comparatively lower purchase prices and steady tenant demand that currently leads the pack.

Yield Numbers Outpace City Centre

According to ImmoScout24’s mid-2026 market report, average gross yields for new rental apartments in Giesing hit 4.45% in June, up from 3.8% a year ago. Median purchase prices for a two-bedroom flat hover around €485,000, but typical net monthly rents have held above €1,800 for newly renovated apartments near Silberhornstraße. By contrast, yields in Ludwigsvorstadt and Maxvorstadt remain well below 3.1% as purchase prices continue to outpace rent increases. Data from the Stadtsparkasse München indicates that the number of buy-to-let mortgages approved in Giesing has jumped over 20% in the first half of 2026, particularly as investors who purchased off-plan units in major developments such as Karl-Spengler-Platz are now seeing robust returns.

Despite higher transaction taxes and new energy-efficiency regulations that recently came into force, the calculation for most small-scale investors appears to favour Giesing over the city centre or pricier quarters like Bogenhausen. With projected rental growth of at least 3.5% annually – and major infrastructure projects including new tram connections set for completion by late 2027 – analysts suggest yields could hold steady, if not edge higher, into next year.

Prospective buyers should closely monitor listings via local agencies such as RE/MAX München-Giesing and take note of state-subsidised housing projects released through the Landeshauptstadt München portal, where pre-market offers sometimes yield above-average rates. Experts suggest targeting newly renovated units in smaller apartment blocks between St.-Martins-Platz and Grünwalder Straße, where tenant turnover remains low and refurbishment costs can be contained. As competition for high-yield properties heats up, those prepared to act quickly – and with nerves for renovation – are likely to be rewarded.