Feel free to contact us with any questions you may have regarding the sale of your property.
Tel.: +49 89 340 823-540 | verkauf@mrlodge.de
Jacqueline Sauren
Office Management Real Estate Sales
Find out on this page how real estate prices in Munich are changing, which districts are currently the most sought-after in Munich, how Mr. Lodge determines real estate values in the current market situation, what rents and purchase prices can be achieved and why we can competently support you in this endeavor.
Munich has grown strongly in recent years. As the third largest metropolis in Germany, the city of 1.6 million people is currently in high demand as a place to work and live.
There are virtually no vacancies in Munich and the real estate market is characterized by high demand.
Property owners looking to sell are benefiting from the high price level, although purchase prices have fallen recently.
Anyone selling a property in Munich needs an experienced market professional to determine the fair market price. After square meter prices have only risen over a long period of time, special care is required when prices fall.
The experienced real estate agents at Mr. Lodge first develop a sensible, individual sales strategy. When determining the right property price, they also take into account what buyers in Munich can currently afford and in which target group the property on offer has the best chances of selling.
Real estate prices in Munich have been at record levels for years. If you look at the purchase prices for condominiums, they have been at an absolute high since 2012. At that time, a square meter of living space could change hands for 3,428 euros. At the beginning of 2022, the average price was 9,187 euros. That corresponds to almost a tripling of the selling price.
This unmediated price increase reached a temporary peak at the end of 2022. Since then, prices per square meter in Munich have been falling.
Even in the fourth quarter of 2023, there was still no sign of a bottoming out. The price declines are likely to continue in 2024.
Development of asking prices for condominiums in Munich from 2012 to the 1st quarter of 2023 (in euros per square meter)
Source: Statista
Anyone looking to sell a house or apartment in Munich will benefit from the development of Munich's real estate prices. The districts that are most popular are certainly those around the city center or Munich's old town. There you will find nightlife of all kinds and culinary offerings for every taste. The city of Munich is alive and always in tune with the times, which is most noticeable in the neighborhoods near the old town. Nevertheless, all of Munich's districts have something special: Although places like Germering, Unterhaching and Unterföhring are generally not as popular with students, families or older generations like to live in these somewhat quieter areas.
Of course, demand shows in the price of square meter: the trendier the district, the higher the purchase price. Since Munich real estate prices have been at record levels since 1950 and the city is one of the most expensive cities in Germany , properties in all districts will attract enthusiasts and buyers.
Going by the rental prices for apartments in 2023, these 5 districts are at the top: Altstadt-Lehel, Maxvorstadt, Ludwigsvorstadt-Isarvorstadt, Schwabing and Schwabing-West, Au-Haidhausen. All these districts will require net rents of €22 to € 25 per square meter of living space.
Rental prices for apartments in Munich in 2023 broken down by district (in euros per square meter)
Source: Statista
Since construction interest rates have risen, many people interested in real estate find it harder to afford to buy their own home or condominium.
Financial strength is declining and so are inquiries, although demand remains strong.
Therefore, the diligence of a long-standing, experienced market expert like Mr. Lodge is necessary to determine a sales price in line with the market.
It is currently not possible to make a reliable forecast about the long-term trend on the real estate market. Prices are likely to continue to fall due to faltering inquiries from less financially strong interested parties, while the supply in Munich is increasing. This will also increase competition for properties on the market.
At the same time, however, there is a possibility that the current situation with inflation and interest rates will ease again. Irrespective of market developments, the current situation is a good time for all property owners who want to sell their property, whether owner-occupied or rented, as there is still good scope for profit-taking.
With Mr. Lodge as a partner at your side, nothing stands in the way of the successful sale of your property. For more than 30 years we have been real estate agents in Munich and the surrounding area and we know the market.
When it comes to selling your property, we act routinely and proceed as follows:
First, the property is inspected. The best way to analyze the advantages and weaknesses of a property is on site. The next step is the property valuation. We determine the achievable sales price and discuss which measures could be taken to increase the revenue. You as the owner may carry out minimal modernizations that can positively influence the value. For a perfect presentation we offer home staging. This involves furnishing the empty property in a homely manner so that interested parties can experience the full potential of their future home. Studies show that this method achieves considerably better sales revenues.
As a next step, we sift through and thoroughly check the documents provided. We advise you as the owner which documents are necessary for a successful sale and obtain them on your behalf, if requested. Our commissioning is transparent and our payment is based on a performance-related commission.
Then we start to create an exposé of your property. For this purpose, our in-house team of photographers will take pictures and videos of your apartment or house. Subsequently, we create an appealing exposé, which summarizes the core data of the property and the mentioned pictures. We publish this on our homepage and on the well-known internet portals.
In the next step we think about the target group of your sale: Is it rather the young couple with children, the student, whose parents finance the apartment for their child or is it rather older people, who could be prospective buyers of the property?
Depending on the target group, we develop a suitable marketing strategy as a team. The reason being: not every channel is suitable for all interested parties. While young people are always on the move and use platforms such as TikTok or Instagram on a daily basis, this is quite different for older people. Prospective real estate buyers of a certain age use real estate portals or advertisements in established print media to find the house or apartment of their dreams. There are countless possibilities and it is vital to maximize their potential.
The next item on our agenda is marketing. We strive to match real estate buyers with properties. In order to find ideal prospective buyers for your property, we proactively compose mailings. This way, we can directly approach our extensive pool of interested parties. The chances of finding the right buyer for your house or condominium like this are quite good. In addition, we present your property on our homepage and place the advertisement on all common Internet portals. Print media and displays in our shop windows in Munich and Rottach-Egern are used as further means to generate attention. We approach potential buyers in a targeted manner and proactively search for additional interested parties. During this process you are continuously informed about the status of the marketing. We also discuss the progress of negotiations and the next steps in the sales process with you as the owner and then implement them.
Subsequently, we will arrange viewing appointments on your behalf with those who are seriously interested in buying. Of course, tenants and you as the property owner will be involved in this process. We always work hand in hand.
Furthermore, we are a competent partner when it comes to sales negotiations. We determine the conditions under which the property will ultimately change hands. We also support potential buyers in taking out mortgages.
Finally, the notarial purchase contract according to our specifications is drawn up by a notary. We discuss this in advance with you as the owner and accompany you to the notary appointment, where the sale of the property is sealed by the signature of all parties.
As a local real estate agent, we know the Munich real estate market like the back of our hand. We have a large network and therefore know all the properties on offer in the Isar metropolis. We know what type of property and which districts are currently in demand, and we provide professional support in price negotiations with prospective buyers.
With years of expertise, a very professional and multilingual team, we have a wealth of experience - also with international buyers. We understand the market and can achieve the optimal selling price for you. In doing so, we take over all tasks for you to ensure the success of your real estate sale.
Feel free to contact us with any questions you may have regarding the sale of your property.
Tel.: +49 89 340 823-540 | verkauf@mrlodge.de
Jacqueline Sauren
Office Management Real Estate Sales