Munich Outer Districts Fall Behind Berlin on Rent Growth

Munich tenants in districts beyond the Mittlerer Ring now pay an average €18.40 per square metre, a level 19 per cent below comparable Berlin suburbs according to data compiled this week.

The gap has widened since the European Central Bank left its main refinancing rate unchanged at 2.15 per cent in June. Households weighing a move from rental contracts to ownership face different entry costs depending on whether they stay inside Bavaria or look toward the capital.

Local price patterns in named districts

In Pasing, west of the city centre, two-bedroom flats on Landsberger Strasse list at €1,650 monthly. Further east, units near Trudering station average €1,520. Both figures sit below the €1,920 recorded for similar properties in Berlin’s Marzahn-Hellersdorf borough. The Munich Housing Office, which administers the city’s social housing quota, added 1,240 new units in these two districts during the first half of 2026.

Buyers encounter a different arithmetic. A 75-square-metre apartment on Pasing’s Planegger Strasse carries an asking price of €485,000. The same size unit in Berlin’s equivalent outer ring sells for €395,000. Local mortgage brokers report that buyers need a 28 per cent deposit in Munich versus 23 per cent in Berlin to keep monthly outgoings under 35 per cent of net income.

Evidence from recent market reports

The Bavarian Real Estate Institute’s 10 July 2026 release placed Munich’s price-to-rent ratio at 27.8, compared with 21.4 in Berlin. The same report showed annual rent growth of 4.1 per cent across Munich’s outer postcodes against 11.8 per cent in Berlin’s outer ring. These numbers come from 4,800 verified listings processed between January and May.

Prospective buyers should review current listings on Immobilienscout24 for properties inside the 45-minute S-Bahn catchment and contact the Munich Tenants Association before signing any new lease that runs past September.