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
Real estate sellers throughout Germany are facing major challenges. This is also the case here in Munich. We have summarized the most important issues below:
- 1. Ideal moment for the sale
- 2. Development of real estate prices
- 3. Which Munich districts are currently most lucrative?
- 4. Sales process at Mr. Lodge
- 5. Why sell your real estate with the help of Mr. Lodge?
Not for nothing is Munich considered the heart of Bavaria: The city captivates with its beautiful old town: The Munich City Hall with Marienplatz, the Frauenkirche and the Odeonsplatz with the Theatinerkirche give the metropolis on the Isar its very special charm. Here, tradition and modernity meet. Whether it's the Feldherrenhalle, the Residenz, the Siegestor or Nymphenburg Palace, this city breathes history. Culturally, the Bavarian capital impresses as well: The Bavarian State Opera, the German Theater, the Philharmonic Hall and the Pinakothek museums of the city are a delight for culture lovers from all over the world. In addition, the various city districts captivate with their very own attitude to life. Whether Bogenhausen, Schwabing or Ludwigsvorstadt-Isarvorstadt, each quarter has its own distinctive character.
In addition, the city is constantly growing. In the last 20 years Munich has gained over 250,000 new residents. As the third-largest metropolis in Germany, the city of 1.6 million people is currently as much in demand as ever as a place to work and live. Munich's vacancy rate even undercuts cities such as Stuttgart and Cologne. In terms of housing, there are virtually no vacancies in Munich. Property owners who are in the process of selling their properties are benefiting from the positive market situation: sales prices have been at record levels for ages. The current price level is respectable, but there is a slight downward trend: property prices are falling. How the situation will develop in the future is uncertain; a valid forecast for the future is difficult.
Here you can find out when the ideal time for a sale is, which districts are the most sought-after in Munich at the moment, how a property sale at Mr. Lodge works, which purchase prices can be achieved and why we can competently support you in this endeavor.
The ideal moment for selling real estate
The question of the right time to sell real estate is as old as mankind itself: Of course, house or apartment owners in the metropolis of Munich want to sell their beloved home at the best possible price.
If unforeseen life circumstances force a sudden sale, real estate owners naturally want to find a time that promises a favorable price. In this respect, conditions are ideal in Munich and the surrounding area: There has been a huge demand for real estate since 1950. Both the purchase market and the rental market are benefiting from this development. No wonder, after all, the city scores not only in terms of beauty, but many international companies choose Munich and the surrounding area as their German headquarters. After Berlin and Hamburg, Munich is Germany's most popular research and business location and is also highly regarded internationally.
Development of Munich’s real estate prices
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. However, this unmediated price increase seems to have come to an end: In the third quarter of 2022, the square meter of residential bliss was now 8,976 euros.
Development of asking prices for condominiums in Munich from 2012 to Q3 2022 (in euros per square meter)
Source: Statista
This graph shows that Munich real estate prices are currently falling. Those who are still in the decision-making process of keeping or selling their real estate should act fast. So far, the price decrease per square meter is not yet serious; should the current development continue, however, there may be considerable financial losses. This is a call to action for real estate owners: Seize the opportunity. At the moment, rising interest rates, persistent inflation and falling sales prices are joining hands.
Which Munich districts are the most lucrative?
Anyone looking to sell a house or apartment in Munich will benefit from Munich's real estate prices. The districts that enjoy the greatest popularity 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 has been one of the most expensive cities in Germany for ages in terms of rents and real estate prices, properties in all districts will attract enthusiasts and buyers.
Going by the rental prices for apartments in 2021, however, 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 over €22 per square meter of living space.
Rental prices for apartments in Munich in 2021 broken down by district (in euros per square meter)
Source: Statista
In general, real estate in Munich costs around 8,000 to 12,000 euros per square meter. Of course, there are considerable differences here depending on the location. For existing buildings, the price per square meter fell from 7,786 euros to 7,425 euros in the fourth quarter of 2022. This makes for a price drop of 4.7 percent per square meter for property owners. When comparing sales prices within Germany, Munich prices are still record prices. In comparison, the second most expensive metropolis in the Republic, Frankfurt am Main, comes in at just 5,578 euros per square meter.
Since construction interest rates have risen, many people interested in real estate find it harder to afford to buy their own home or condominium. For this reason, demand is falling, as the financial strength of some interested parties is no longer sufficient. This has an impact on real estate prices. Perhaps the falling prices per square meter are a consequence of this development?
It is difficult to predict which way this trend will develop in the long term. Of course, prices could continue to fall due to falling demand from interested parties with little financial strength. But it is also conceivable that the current situation will ease again with inflation and interest rates. No one can predict the future, but one thing is certain: the present is a good time for all those real estate owners who want to part with their property, whether owner-occupied or rented. So far, the losses have been moderate.
Real estate sale process with Mr. Lodge
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 acting as real estate agents in Munichand the surrounding area and we know the market.
When it comes to selling your property, we act according to a set pattern:
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. Either you as the owner carry out minimal modernizations that can positively influence the value or we carry out home staging to achieve this goal. This involves furnishing the empty property in a homely manner so that interested parties can get an idea of how it will look when occupied. 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.
When it comes to selling real estate, why should you cooperate with Mr. Lodge?
Given the current decline in real estate prices in Munich (as of the 1st quarter of 2023), selling a property is an obvious choice for all those owners who have long been contemplating doing so.
The cooperation with Mr. Lodge has many advantages for you as a seller of real estate: 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 know all the pitfalls when negotiating prices with prospective buyers.
As we have been active as real estate agents on the Munich market for more than 30 years, our extensive experience and negotiating skills help us to influence the sales price in your favor, even with international buyers. For this reason, real estate sales with a broker at your side usually achieve higher sales prices. During the sales process, you will find that hiring a real estate agent relieves you of a great deal of work: they take care of all the work for you. Everything that is difficult for real estate owners is their day-to-day business: they are familiar with all the necessary documentsand steps and therefore carry them out professionally and efficiently. Armed with this expertise, we succeed. This will save you time and money and avoid unnecessary stress.
