Offer prices Munich - current trends and tips for real estate buyers and sellers

1. what is meant by offer price?

---

The asking price is the price at which a property is offered on the market - i.e. the seller's "asking price" in the exposé. It is important to note that this price does not automatically correspond to the subsequent sales price. Rather, it serves as a starting point for negotiations. If it is set in line with the market , it will arouse interest among buyers; however, if it is unrealistically high, the property may remain on the market for longer than desired.

"An asking price in line with the market is the key to a successful sale in Munich - a price that is set too high scares off prospective buyers, while one that is too low gives away cash," - emphasizes Norbert Verbücheln, Managing Director of Mr. Lodge.

As an experienced real estate agent with over 30 years of market knowledge in Munich, Mr. Lodge knows that the right asking price requires a well-founded valuation. This involves determining the current market value (market value), which serves as a guide for setting the price. It is customary to set the offer price slightly above the estimated market value - often around 5-10% higher. This leaves room for negotiation without deterring potential buyers. At the same time, owners should bear in mind that buyers usually want to negotiate a discount.

2. real estate market Munich: Overview of asking prices (2025)

---

Munich's real estate market is changing in 2025. After years of rapid price increases - from an average of around € 4,000 per m² in 2012 to around € 9,500 per m² at the peak in early 2022 - a noticeable price correction followed in 2022/2023. Higher interest rates and economic uncertainties caused asking prices to fall by around 10-20% by the end of 2023. However, there have been signs of stabilization since the end of 2024. In the first quarter of 2025, average asking prices for apartments in Munich will be around € 8,200-8,300 per m² again. Although this is still slightly lower than at the peak, it is still a very high level - almost twice as high as in the mid-2010s.

Why are real estate prices in Munich so high in the first place? The main reasons are the persistently strong demand and limited supply. Munich is extremely sought-after as a business metropolis and a place to live. Many people move to the city every year, while building land is in short supply. Particularly in central locations, demand significantly exceeds the available supply. This shortage leads to permanently high prices. At the same time, real estate in Munich is considered a stable investment, which also attracts buyers - including investors.

"After a phase of uncertainty, the Munich real estate market is regaining momentum and stability," explains Norbert Verbücheln. Prospective buyers are benefiting from the slightly lower prices and greater choice, while sellers can still achieve very good prices. Overall, there are many signs of a gradual market recovery.

Tip: As a buyer, it is worth taking advantage of the current market situation. The supply of properties has grown significantly recently and financing is once again cheaper than it was in 2022. If you take action now, you can buy in Munich under more relaxed conditions before demand picks up again.

3. asking prices per property type (apartment vs. house)

---

Not every property in Munich is at the same price level. Condominiums and houses sometimes have different asking prices per square meter. Current market data shows an average price of around €9,000 per m² for condominiums, while houses average around €8,400 per m². How does this difference come about?

One reason is the location and size of typical properties: Apartments are often located in desirable inner-city locations or well-connected neighborhoods, where prices per m² are higher. Houses (e.g. detached houses or terraced houses) are increasingly found in the outer city districts or in the surrounding countryside, which can lead to somewhat more moderate prices per square meter. In addition, houses are larger on average; the absolute purchase price of a house is therefore often higher than that of an apartment, even if the price per m² appears statistically lower. For example, a house with 150 m² of living space at ~€8,400/m² means a total price of over €1.25 million.

Of course, there are also exceptions in Munich: Exclusive city villas or large penthouse apartments in top locations go well beyond the average prices mentioned and often fetch five-figure sums per square meter. Overall, however, asking prices should always be considered in the context of the type of property - a comparison of apartments with houses is misleading if the location and features are very different.

4. factors that influence the offer price

---

Every property is unique. Accordingly, asking prices depend on a variety of factors that should be taken into account when determining a price:

• Location: The location is probably the most important value factor. Central or particularly sought-after districts (e.g. Altstadt-Lehel, Schwabing, Maxvorstadt) achieve higher prices, while outlying districts such as Aubing, Moosach or surrounding communities can be cheaper. The micro-location - such as a quiet residential area, proximity to parks or public transportation - also plays a role. Even within a neighborhood, there can be differences depending on the street or surroundings.
• Size and layout: The living space and number of rooms naturally have a significant influence on the price. However, very small apartments (e.g. 1-bedroom apartments) often fetch a higher price per m² than medium-sized ones, as they are more attractive to investors and more affordable in absolute terms. Unusual floor plans can also reduce the price, while a good room layout increases the value.
• Condition and fittings: The year of construction and condition of the property are key factors. Newly renovated or as-new properties with modern fixtures and fittings (e.g. high-quality kitchen, fine floor coverings, smart home technology) justify higher asking prices. Conversely, renovation backlogs, old boilers or basic standards depress buyers' willingness to pay. Features such as a balcony/terrace, garden use, elevator, parking space/garage or basement space also have an impact - in Munich, for example, an underground parking space or a second bathroom are coveted extras.
• Market situation: In addition to property-specific features, macroeconomic factors also influence the asking price. When demand is high and supply is scarce - as is usual in Munich - higher prices can be achieved. In a market phase with rising interest rates or economic uncertainty, on the other hand, the willingness to pay falls somewhat. Currently, interest rates for real estate loans remain moderate at ~3 %, which is supporting demand. At the same time, the limited supply of new builds in Munich is restricting the supply of residential space, particularly in central locations. These general conditions ensure that prices tend to remain stable.
• Special factors: Each property can have additional value-determining features. These include, for example, listed buildings (can be attractive, but come with conditions), leaseholds on land, orientation (south-facing balcony) or future developments in the neighborhood (planned infrastructure, construction projects). Such factors must be assessed individually and can influence the offer price upwards or downwards.

5. tips for sellers and prospective buyers

---

Whether you are an owner who wants to sell successfully in Munich or a prospective buyer looking for your new home - the following tips will help you to deal with asking prices correctly:

Tips for sellers:

• Realistic pricing: Determine the value of your property professionally and set the asking price in line with the market. An inflated price will deter buyers and unnecessarily prolong the marketing period. Norbert Verbücheln advises: "Owners should neither set the price too high nor too low. Knowledge of the market is crucial in order to achieve the optimum asking price." You are welcome to use online price calculators or a personal valuation by experts as a guide.
• Strategy & negotiation: Plan your pricing strategy in advance. A small negotiation buffer (approx. 5-10%) is usual, but also calculate your pain threshold. Remain flexible and willing to listen to inquiries - serious potential buyers often have their own ideas. A fair, well-communicated asking price creates trust and is more likely to lead to successful negotiations than a fantasy price.
• Presentation of the property: An attractive first impression justifies the asking price. Make sure you have proper documentation (floor plan, energy certificate) and attractive photos. If necessary, home staging can help to emphasize the potential of your apartment or house. Buyers are more willing to accept a higher asking price if the property is well maintained and presented to a high standard.
• Be patient, but watch the market: Not every sale is instant. Give your offer some time, but respond to market feedback. If there is no interest, it may make sense to adjust the price before the offer looks "old". Follow the general market development in Munich at the same time - if prices increase, this can strengthen your negotiating position; if demand decreases, even more realism is required.

Tips for prospective buyers:

• Market knowledge and budget planning: Find out about the usual local prices in your desired neighborhood and define a clear budget. In Munich, asking prices currently vary greatly depending on location and property - from moderate prices on the outskirts to top prices in central locations. You should also factor in additional purchase costs (notary, land transfer tax, estate agent's commission) to ensure you have the right financial framework.
• Prepare financing: Since attractive properties in Munich are in high demand, it is advantageous to have a financing commitment from your bank before you submit an offer. This will allow you to strike more quickly if a suitable offer appears. The current interest rates of around 3% are still relatively low by historical standards - this enables many buyers to buy their own home despite high prices.
• Compare and remain realistic: Take a look at comparable real estate offers to get a feel for reasonable asking prices. However, you should not speculate that every seller will drastically lower the price in the end - especially in Munich, good properties are often highly competitive. If the asking price seems fair and the property meets your expectations, don't hesitate too long.
• Negotiation strategy: Despite the competition, it is worth negotiating objectively. Check the property carefully (location, condition, any defects) and use these points to negotiate an appropriate price reduction if necessary. A well-founded bid below the asking price can be successful, but remain respectful - overly aggressive "bargain hunting" is often counterproductive in Munich.
• Professional support: Consider having a real estate expert like Mr. Lodge at your side, especially if you are new to the Munich market. An experienced estate agent can give you access to suitable offers, support you in price negotiations and assess whether an asking price is reasonable or whether there is room for maneuver.

Note: As a seller, pay attention to the price thresholds that buyers are looking for. An advertisement for €299,000, for example, will attract significantly more attention than one for €305,000, as many potential buyers set round budget limits. If your offer is just above a common limit, you will miss out on potential buyers who pre-list it on portals. Even a clever choice of price can increase the reach of your ad and make it more attractive psychologically.

6 Conclusion: Use expert advice from Mr. Lodge

---

The development of asking prices in Munich shows: Even at a high level, there is movement on the market. For sellers, this means that they can continue to achieve very good prices - provided the property is correctly valued and positioned. Prospective buyers, on the other hand, can take advantage of the opportunity to buy in a stabilized market situation before prices possibly rise again. In both cases, sound market knowledge pays off. Professional valuation and advice are essential in this challenging market in order to be successful.

Mr. Lodge, a competent partner in real estate sales with over 30 years of experience, will be happy to assist you. The team keeps a close eye on market trends and knows the special features of each district. Norbert Verbücheln, Managing Director of Mr. Lodge, emphasizes: "If you are interested in specific districts and price trends, we will be happy to advise you in detail and individually." Use this expertise to prepare your property purchase or sale in Munich in the best possible way - so you can achieve your goal at a market-driven asking price.

FAQ 7.

---

Knowing the market value of a property in Munich creates security and orientation - for both sellers and buyers. It reflects the realistic market price that can be achieved under normal conditions and is based on a variety of factors ranging from location to fixtures and fittings. As a sought-after location, Munich is characterized by particularly high property values, which is why a realistic valuation is all the more important.

It is crucial for owners to have the market value determined professionally before setting the sales price. This ensures that they neither sell below value nor scare off potential buyers with an inflated price. In turn, prospective buyers can use the market value as a guide to make a fair offer and adjust their financing accordingly.

In conclusion, real estate valuation is a matter of trust. If necessary, consult an expert such as Mr. Lodge to accurately determine the market value of your property. With this knowledge, you are ideally equipped to operate successfully on the Munich real estate market. After all, a well-founded valuation is the foundation for every good decision regarding your property.