Munich's residential real estate market
The market for residential real estate in Munich will be dynamic in 2025. A significant increase in supply meets increased willingness to buy, while higher financing requirements are influencing purchasing decisions. In this environment, location, features and realistic price expectations are becoming increasingly important.
The most important points at a glance:
- Purchase market: Significant increase in supply coupled with high demand; prices largely stable, slightly declining in individual segments. Over 65% of buyers were owner-occupiers or buying for relatives.
- Rental market (furnished): Inconsistent demand in the 4th quarter, rising supply of 1- and 2-bedroom apartments; high-quality furnishings continue to gain in importance.
- Building permits: Almost halved in the city of Munich (-48%), some strong growth in the surrounding areas - particularly in Rosenheim, Ebersberg and Miesbach.
- Interest rates & financing: Mortgage interest rates remain a key factor; interest rates increased slightly at the end of the year.
- General conditions: Robust labor market, rising population and high start-up momentum are supporting demand, while regulation and low new construction activity are limiting supply.
Rental market for furnished apartments
Demand for furnished apartments and houses developed differently in the 4th quarter. Subdued demand in November contrasted with increased demand in December. The trend in January was similar to the previous year.
As in previous quarters, apartments and 2-room apartments were by far the most sought-after categories.
The most sought-after price range for 1-bedroom apartments is €1,100 to €1,500 and for 2-bedroom apartments €1,700 to €2,300 (each including all utilities, electricity and internet). Houses were predominantly rented for €3,500 to €5,000 (plus utility costs). More luxurious properties and villas achieved rents of up to €15,000. The trend is towards increasingly well-equipped properties.
In 2025 as a whole, Mr. Lodge assisted over 11,000 prospective tenants (-3.5%) and successfully brokered over 2,100 furnished apartments and houses. There were 13% fewer new apartments on offer, reflecting the tightening housing market.
For 2026, we expect demand to be slightly higher than in the previous year.
Purchase market apartments and houses
The entire year and the 4th quarter were characterized by a large and significantly increased supply on the Munich market. On the other hand, events were characterized by a high willingness to buy throughout the year. The right location, furnishings and an attractive purchase price were key factors in the willingness to buy. For Mr. Lodge, turnover in the sales area increased by 42%. The 4th quarter was also very dynamic. Over 65% of buyers were owner-occupiers or buying for relatives.
The fall report of the Munich appraisal committee reports a stagnation to slight decline in prices for condominiums, semi-detached houses and terraced houses for the 1st to 3rd quarter (Q4 is not yet available). In the market for detached, semi-detached and terraced houses as well as small condominium complexes, 11% more transactions were registered. Prices for individual residential building plots fell by 16% compared to the standard land values as at 01.01.2024.
| REAL ESTATE TYPE (in average, good residential areas) | APPROXIMATE PRICE |
| Semi-detached house | €1,105,000 |
| Terraced corner houses | €1,025,000 |
| Mid-terraced houses | €880,000 |
Immoscout is reporting rising prices for the first time since 2020 in all top 8 cities at the end of the year, with moderate growth of 0.8% for Munich. Demand would shift back to the cities.
Tightening of the rent freeze and further regulations:
The German government's planned tightening of tenancy law and further regulation of the rent freeze will not support investment in rental apartments and the purchase of real estate for retirement.
Offer real estate for sale
Supply of properties for sale declines
Compared to the previous quarter and the previous year, the increase in supply and the supply of apartments, houses and land for sale in Munich and almost all districts has decreased. In the districts of Dachau, Ebersberg and Miesbach, the supply of apartments is down on the previous year.
| RESIDENTS | 13.01.2025 | 12.01.2026 | Change in % |
| München | 3094 | 3648 | 17,9% |
| Landkreis München | 542 | 656 | 21,0% |
| Fürstenfeldbruck district | 305 | 360 | 15.0% |
| Dachau district | 178 | 163 | -8.4% |
| LK Ebersberg | 261 | 213 | -18.4% |
| LK Starnberg | 188 | 213 | 13.3% |
| LK Bad Tölz / Wolfratshausen | 139 | 170 | 22.3% |
| LK Miesbach | 243 | 227 | -6.6% |
| HÄUSER | 13.01.2025 | 12.01.2026 | Change in % |
| München | 776 | 921 | 18,7% |
| Landkreis München | 538 | 619 | 15,1% |
| Fürstenfeldbruck district | 376 | 518 | 23.7% |
| Dachau district | 318 | 348 | 9.4% |
| LK Ebersberg | 242 | 330 | 36.4% |
| LK Starnberg | 338 | 466 | 37.9% |
| LK Bad Tölz / Wolfratshausen | 180 | 196 | 8.9% |
| LK Miesbach | 252 | 289 | 14.7% |
| GRUNDSTÜCKE | 13.01.2025 | 12.01.2026 | Change in % |
| Munich | 270 | 279 | 3.3% |
| Munich district | 206 | 222 | 7.8% |
| Fürstenfeldbruck district | 149 | 130 | -12.7% |
| Dachau district | 93 | 117 | 25.8% |
| LK Ebersberg | 75 | 71 | -5.3% |
| LK Starnberg | 157 | 185 | 17.8% |
| LK Bad Tölz / Wolfratshausen | 51 | 55 | 7.8% |
| LK Miesbach | 88 | 103 | 17.0% |
BUILDING PERMITS
In the city of Munich, building permits for apartments have almost halved. As of November 30, only 4,537 apartments were approved, which corresponds to a decline of 48% compared to the previous year. There was a very positive trend in some districts. Ebersberg +69%, Miesbach and Rosenheim with +84% each. The district of Rosenheim stands out in particular with 1,115 approved apartments.
| CONSTRUCTION APPROVAL APARTMENTS | 01.01.-31.12.2024 | 01.01.-31.12.2025 | Change in % |
| München | 9357 | 4820 | -48% |
| Munich district | 1496 | 1649 | 10% |
| Bad Tölz district | 254 | 252 | -1% |
| Dachau district | 418 | 473 | 13% |
| LK Ebersberg | 231 | 390 | 69% |
| LK Freising | 569 | 646 | 14% |
| LK Erding | 798 | 523 | -34% |
| LK Fürstenfeldbruck | 307 | 508 | 65% |
| LK Miesbach | 170 | 313 | 84% |
| LK Starnberg | 406 | 330 | -19% |
| LK Rosenheim | 697 | 1115 | 84% |
| 14613 | 11019 | -25% |
POPULATION DEVELOPMENT
The population increased by a total of 9,542 people (1,613,399 main residents (1,603,857 at the beginning of the year)) over the course of the year to the end of November. The number of households increased by 5,340 (868,674 compared to 863,334). For 2025, the city of Munich reported a birth surplus of +2,860 and an inflow balance of +4,825. Overall, however, the inflow decreased significantly and the outflow increased.
LABOR MARKET CITY OF MUNICH
Labor market more robust than in other regions:
The Federal Employment Agency reports almost unchanged unemployment (rate 5%) in the Munich agency district in December 2025. Compared to the previous year, however, it has risen significantly by 9.4%. Registered jobs are 10.8% below the previous year. The number of employees subject to social insurance contributions rose to 1,242,026 (+0.5%). The agency comments: Although the slight increase in unemployment in December is within the usual seasonal range, the number of unemployed is still higher than it has been for many years, while at the same time there are fewer vacancies available. The number of vacancies on Stepstone (09.01.2026) is at the same level as last year.
INFLATION
The inflation rate in Germany is expected to be +1.8% in December 2025. It is measured as the change in the consumer price index (CPI) compared to the same month of the previous year. According to the Federal Statistical Office (Destatis), consumer prices will remain unchanged compared to November 2025 (0.0%) based on the results available to date. The annual average inflation rate for 2025 is expected to be +2.2%. The inflation rate excluding food and energy, often referred to as core inflation, is expected to be +2.4% in December 2025.
INTEREST RATE DEVELOPMENT
The development of mortgage interest rates remains a key factor in purchasing decisions on the real estate market. Current assessments from the financing sector indicate that the scope for further falls in interest rates is limited and the risk of rising financing costs is increasing. "Construction financing has hardly any room to fall and is tending to become more expensive. In view of the forecasts, we advise against speculating on falling interest rates - the risk of rising costs currently clearly outweighs this. If you can buy and have found the right property, you should establish the facts now. Professional advice will help you to realistically calculate your budget and optimally incorporate funding opportunities into the financing. Good advice will be a key factor in 2026," predicts Miriam Mohr, Chief Sales Officer of the Interhyp Group, in December 2025.
| Maturity | Oct'12 | Oct'16 | May'19 | July'21 | July'22 | May'23 | Aug'24 | May'25 | Jan'26 |
| 5 Jahre | 1,7% | 0,7% | 0,7% | 0,6% | 2,7% | 3,7% | 3,1% | 3,0% | 3,2% |
| 10 Jahre | 2,4% | 0,9% | 0,8% | 0,6% | 2,9% | 3,3% | 3,0% | 2,8% | 3,3% |
| 15 Jahre | 2,9% | 1,3% | 1,2% | 0,9% | 3,1% | 3,6% | 3,3% | 3,0% | 3,7% |
| 20 Jahre | 1,5% | 1,1% | 3,4% | 3,8% | 3,4% | 3,2% | 3,9% |
OUTLOOK
We expect the Munich residential real estate market to develop positively in 2026, provided that the German government does not hamper investment by introducing new regulations and tightening rental law. Limited new construction activity, economic strength and continued immigration are generally supporting demand. Sound market analysis and professional advice are becoming increasingly important.
