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.