Property Investment in Munich
1,612,429 residents · €8,200/m² average · ~3.2% gross yield. Every figure verified against primary sources (July 2026).
Schedule Free ConsultationIllustrative estimate at a 3.8% assumed interest rate (10y fixed, June 2026 market range 3.6–3.9%) plus 2% initial amortisation. Actual terms depend on the property, your profile and the lender. Not financial advice.
The Munich market
Munich is Germany's most expensive and most supply-constrained housing market: the CBRE-empirica market-active vacancy rate of 0.1% is the lowest in the country and new construction persistently lags population growth (city forecast: ~1.83 million residents by 2045). The Mietpreisbremse applies under Bavaria's new Mieterschutzverordnung (in force 1 Jan 2026 until 31 Dec 2029, covering 285 municipalities): re-let rents capped at 10% above the local comparative rent, Kappungsgrenze lowered to 15% in three years, and buyers of converted condos face a 10-year block on Eigenbedarf termination (https://www.bayern.de/neufassung-der-mieterschutzverordnung-mietpreisbremse-gilt-ab-januar-2026-in-285-staedten-und-gemeinden-ausweitung-vor-allem-im-grossraum-muenchen-und-im-oberland-justizminister-eisenreich-me/). Investors must also check the 36 Erhaltungssatzung (Milieuschutz) areas covering roughly 204,000 flats, where condo conversion, luxury modernisation and demolition need municipal permits and the city holds pre-emption rights (https://stadt.muenchen.de/infos/erhaltungssatzung-muenchen.html). A structural advantage: Bavaria's Grunderwerbsteuer of 3.5% is the lowest transfer tax in Germany, versus up to 6.5% elsewhere. Demand is underpinned by an exceptionally deep employer base — BMW, Siemens, Allianz and Munich Re HQs plus major Google, Apple and Microsoft engineering hubs and two elite universities — which keeps rental demand high but compresses gross yields to roughly 3%.
Neighbourhoods we track
Schwabing-West — Classic Altbau boulevards around Elisabethplatz and Hohenzollernstraße; Munich's archetypal upscale-bohemian quarter with a perennially liquid resale market. (≈€8,111–€13,127/m²)
Ludwigsvorstadt-Isarvorstadt (incl. Glockenbachviertel) — Trendy inner-city district around Gärtnerplatz and the Glockenbach scene quarters; nightlife, creative industries and the strongest rental demand in the city. (≈€8,469–€14,628/m²)
Maxvorstadt — Museum and university quarter (LMU, TUM, Pinakotheken); dense Altbau stock and small units in constant student and academic demand; district avg €11,231/m².
Au-Haidhausen — Village-like 'Franzosenviertel' east of the Isar with cobbled squares and a gastro scene; Milieuschutz (Erhaltungssatzung) areas are widespread here; district avg €9,995/m².
Sendling — Formerly working-class quarter around the Großmarkthalle, now a gentrifying mid-price entry point close to the Isar and Theresienwiese; district avg €8,258/m².
Obergiesing — Munich's classic up-and-coming district on the east-bank terraces; still one of the cheaper inner districts and a favourite for yield-oriented buyers; district avg €7,636/m².