Authored by the expert who managed and guided the team behind the Germany Property Pack
Yes, the analysis of Bavaria's property market is included in our pack
Where are the best places to invest in Bavaria right now? Is Munich still the top pick, or are cities like Nuremberg, Augsburg, and Regensburg gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the region. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Bavaria and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Regensburg is booming with its growing student population and university expansion driving the property market
Regensburg's property market is booming thanks to its growing student population and the expansion of the University of Regensburg.
With 20,702 students enrolled as of 2024, the university has seen a steady rise in numbers, creating a buzz in the housing market. This influx of students has sparked a race to provide more student housing, with private providers stepping up to meet the demand.
Since 2010, over 45,000 student beds have been completed, and there's more to come. By the end of 2022, an additional 21,800 beds are expected, pushing the provision rate for student accommodation from 11.9% to 14%. This shows a strong effort to cater to the housing needs of the student community.
Regensburg isn't just about students; the city's population has grown by almost 13% in the last decade. A big chunk of this growth comes from young professionals, who are drawn to the city's vibrant job market. With 780 employees per 1,000 inhabitants, Regensburg boasts a high employment density, which in turn fuels the real estate demand.
These young professionals are not only boosting the economy but also adding to the city's dynamic atmosphere. The combination of a thriving student population and a bustling job market makes Regensburg an attractive place for property investment.
As the university continues to expand and the city grows, the property market is expected to keep thriving. This makes Regensburg a hotspot for those looking to invest in real estate, with the promise of a lively community and a strong economic foundation.
Sources: University of Regensburg Statistics, Student Housing Demand, Regensburg Economic Development
2) Kempten is gaining interest for its affordable homes and scenic beauty in the Allgäu region
Kempten is becoming a sought-after market for its affordable housing and beautiful surroundings in the Allgäu region.
In the Allgäu region, including Kempten, there's a noticeable rise in housing demand. Despite high construction and financing costs, the need for new homes is growing, leading to higher rents. This trend shows that Kempten is part of a larger movement of increasing property sales and values, driven by its scenic charm and quality of life.
Kempten's population has been on the rise, growing from 61,505 in 2001 to 65,050 in 2022. This steady increase means more people are looking for homes, and affordable options are available through Sozialbau Kempten GmbH. They offer various rental choices, including student housing with single-occupancy apartments and shared flats.
Articles like "Come to Kempten, a charming town surrounded by nature" highlight the town's appeal. Kempten's scenic beauty and quality of life are major draws for potential homebuyers. The town's attractions, such as the Art Nouveau fountain and the Church of St. Magnus, are often featured in tourism pieces, showing efforts to enhance living standards and attract new residents.
For those considering a move, Kempten offers a blend of affordability and natural beauty. The town's amenities and attractions make it an appealing choice for homebuyers seeking a high quality of life in a picturesque setting.
With its growing population and rising demand for housing, Kempten is becoming a hotspot in the real estate market. The combination of affordable housing and scenic surroundings makes it a compelling option for those looking to buy property in the country.
Sources: DZ HYP Residential Market Report, City Population, HS Kempten, Germany Travel
We made this infographic to show you how property prices in Germany compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) Freising is booming with its proximity to Munich Airport, attracting frequent travelers and airline employees
The district of Freising is a hot market because of its proximity to Munich Airport, making it a prime spot for frequent travelers and airline employees.
In 2023, Munich Airport experienced a 12.2% increase in passenger volume, reaching 41.6 million passengers. This surge in travel demand makes Freising an attractive option for those who need to be close to the airport.
Aircraft movements at Munich Airport also rose by 8.3% in 2023, highlighting the airport's growing importance. This trend suggests a rising potential for property demand in areas like Freising.
While specific property data for Freising isn't available, the general trend in Bavaria shows that property prices are expected to rise by 3% to 6% in 2025 due to high demand and limited supply.
Freising's appeal is likely boosted by its demographic composition, with many residents working in aviation-related industries. This makes it a logical choice for those employed at or near the airport.
The development of transportation infrastructure connecting Freising to Munich and the airport further enhances its attractiveness, potentially leading to new residential projects and investments in the area.
Source: Munich Airport
4) Würzburg is gaining interest with its vibrant cultural scene and university expansion, attracting students and young professionals
Würzburg's real estate market is buzzing, thanks to its vibrant cultural scene and expanding university.
The University of Würzburg is growing fast, with 27,149 students enrolled as of February 2024. This surge in student numbers means more people are looking for places to live, driving up demand for housing.
Renting in Würzburg is getting pricier, with average rents starting at €750 per month and some places going for as much as €6,000. This trend shows a competitive market, and experts predict rents will rise by five percent over the next couple of years.
Würzburg isn't just about academics; it's a cultural hotspot too. The city's lively arts and events scene draws in both tourists and new residents, making it a magnet for students and young professionals.
With its mix of education and culture, Würzburg offers a unique lifestyle that appeals to many. The combination of a growing university and a bustling cultural life makes it a prime spot for those looking to invest in property.
Sources: DZ HYP Residential Market Report 2024-2025, University of Würzburg Statistics, Würzburg Rental Market
5) Augsburg is booming with rising property values due to its strategic location between Munich and Stuttgart, ideal for commuters
Augsburg is seeing a surge in property values thanks to its strategic spot between Munich and Stuttgart.
Many people working in these bustling cities are choosing Augsburg for its smaller-town charm and affordability. This trend is making Augsburg a hot spot for commuters who want the best of both worlds.
Even though property prices dipped in 2023, Augsburg's future looks bright. Its prime location for commuters traveling between Munich and Stuttgart is a big draw, with many people making the daily trek.
Recent upgrades to the Munich–Augsburg railway are a game-changer. This line is a major route, with about 300 trains, including the speedy Intercity-Express (ICE), zipping through daily. These improvements are making commuting a breeze, boosting Augsburg's attractiveness.
With these developments, Augsburg is becoming a commuter-friendly city, offering a convenient lifestyle for those working in Munich or Stuttgart.
Sources: BNP Paribas Real Estate, Technical University of Munich, Wikipedia
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6) Bamberg is thriving with its UNESCO status boosting tourism and short-term rental opportunities
Bamberg's real estate market is booming thanks to its UNESCO World Heritage status.
This prestigious title, awarded in 1993, has turned Bamberg into a tourist hotspot, drawing visitors eager to explore its well-preserved medieval architecture and rich cultural heritage. The Old Town, with its medieval churches and over 1,300 listed buildings, is a particular attraction.
With more tourists flocking to the city, short-term rental opportunities have surged. Platforms like Airbnb report occupancy rates often exceeding 60%, as tourists are captivated by the unique experiences Bamberg properties offer. This has led to higher average rental yields, especially in the historic areas.
During peak tourist seasons, the demand for accommodation spikes, driven by Bamberg's vibrant attractions like its famous beer heritage and the Mile of Antiques. This demand makes Bamberg properties more appealing for both short-term rentals and long-term investments.
The local government actively promotes cultural events and festivals, further boosting visitor numbers and supporting the real estate market. These initiatives ensure that Bamberg remains a lively and attractive destination.
For potential property buyers, Bamberg offers a unique blend of cultural richness and investment potential, making it a compelling choice in the real estate market.
Sources: Bamberg Tourismusverband Franken, World Heritage - Bamberg, Airbnb Occupancy Rate Calculation
7) Erlangen is gaining attention for its tech and medical industries, driving high property appreciation potential
Erlangen is a hot spot for property investment thanks to its booming tech and medical industries.
With its ambition to become the "medical capital of Germany," Erlangen is attracting major players like Siemens Healthineers GmbH, a global leader in medical technology. This influx of industry giants is not just a badge of honor; it's a magnet for job seekers and investors alike.
The job market here is buzzing, especially in tech and healthcare. Imagine this: one in five of the 115,000 employed residents works in healthcare. This isn't just a trend; it's a wave that's expected to keep rolling, pushing up the demand for housing.
Adding to the allure, Erlangen hosts Medical Valley EMN, a top-tier international medical tech cluster. This isn't just a fancy name; it's a hub where innovation meets opportunity, offering a launchpad for medical start-ups. Such infrastructure is a goldmine for property appreciation.
Think of Medical Valley EMN as a bustling marketplace for ideas, where science, research, and industry come together. This synergy creates an optimal environment for start-ups, further fueling the city's growth and desirability.
So, if you're considering buying property, Erlangen's mix of industry, innovation, and job growth makes it a compelling choice. The city's infrastructure and economic landscape are setting the stage for continued property value increases.
Sources: Erlangen.de, Numbeo
8) Fürth is gaining popularity with first-time buyers for its lower property prices compared to Nuremberg
The town of Fürth is becoming a hotspot for first-time homebuyers due to its affordable property prices compared to nearby Nuremberg.
In 2023 and 2024, Fürth's property market stood out with lower prices than Nuremberg, a trend seen across several German cities. While Nuremberg saw a 6% drop in property prices in late 2022, cities like Hamburg and Munich didn't experience such significant declines.
Real estate agencies, including Immowelt, highlight Fürth's appeal for first-time buyers, thanks to its affordability in a challenging market. In many German cities, families need a hefty income to buy a home, but Fürth offers a more budget-friendly option.
Fürth's lower average cost per square meter, though not precisely quantified, is more affordable than in major cities like Hamburg and Munich, where prices are steep. This makes Fürth a practical choice for those entering the property market.
Beyond affordability, Fürth offers attractive rental yields, drawing in both homebuyers and investors. A 3-room apartment in Villa Aurora, for instance, can generate a notable rental income, showcasing its investment potential.
Fürth's combination of lower property prices and promising rental returns makes it a compelling choice for those looking to invest or settle down. Its growing popularity is a testament to its appeal in the current real estate landscape.
Sources: IAmExpat, Neubaukompass
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Germany. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Ingolstadt is booming with strong rental demand driven by major employers like Audi
Ingolstadt is buzzing in the real estate market thanks to its strong rental demand.
With major employers like Audi in town, job opportunities are plentiful, drawing people from all over. This influx of workers means more folks are looking for places to live, boosting the rental market. In 2023 and 2024, Ingolstadt's unemployment rate was just 2.9%, much lower than the national average, showing a robust job market.
Most of these jobs are in the automotive sector, with companies like Audi and Continental leading the charge. When people have stable jobs, they tend to rent homes, which keeps the rental demand high. Low vacancy rates in Ingolstadt highlight this demand, as there aren't many empty rental properties available.
The average rent in Ingolstadt has climbed, indicating that people are willing to pay more to live in this economically stable city. This is largely due to the job opportunities and security provided by these major employers. Economic stability is a key factor in why people choose to rent here.
Ingolstadt's real estate market is thriving, with rental properties being snapped up quickly. The presence of big companies ensures a steady stream of potential renters, keeping vacancy rates low. People are drawn to the city's vibrant job market, making it a hot spot for real estate investment.
Sources: Tranio, International Social Housing
10) Landshut is attracting interest with high rental yields due to a growing population and limited housing supply
Landshut is catching eyes for its impressive rental yields.
In Germany, rental yields in prime spots have jumped from just under 3% to over 4% recently. While we don't have exact numbers for Landshut, this trend hints that Landshut's rental yields might be climbing too. The city's appeal is growing, and it's not just about the numbers.
Landshut's population has been on the rise, growing from 59,066 in 1990 to 67,880 in 2022. This steady increase means more people are looking for homes, pushing up demand and, in turn, rental prices and yields. It's a simple case of supply and demand, and right now, demand is winning.
Germany is facing a national shortage of affordable rental homes, and Landshut is no exception. This scarcity means rental properties in Landshut are becoming more valuable. With limited housing options, landlords can command higher rents, boosting yields.
For those considering investing in property, Landshut offers a promising opportunity. The combination of a growing population and limited housing supply is a recipe for potentially lucrative rental returns. It's a market where the basics of real estate—location, demand, and scarcity—are all in play.
As the city continues to grow, so does its potential for investors. With more people moving in and fewer homes available, Landshut's rental market is poised for growth. It's a dynamic environment that savvy investors might want to keep an eye on.
Sources: DZ HYP Residential Market Report, City Population, NLIHC
11) Passau is gaining interest for its affordable property prices and rising rental yields
Passau is catching the eye of investors thanks to its affordable property prices.
In the heart of Passau, you can snag a 1-bedroom apartment for just €567.37, while outside the center, it's even cheaper at €415.00. These prices are a steal compared to other German cities, making Passau a smart choice for those wanting to invest without overspending.
Investors are also buzzing about the potential for increasing rental yields in Passau. While exact figures for the city aren't available, the upward trend in rental yields across Germany hints that Passau could see similar growth, offering a promising opportunity for those looking to earn rental income.
The short-term rental market in Passau is thriving, with Airbnb listings typically booked for 204 nights a year and a median occupancy rate of 56%. This shows a strong demand for short-term rentals, and with an average daily rate of €67, investors can tap into the bustling tourism scene.
Passau's charm and affordability are drawing more visitors, boosting the short-term rental market. The city's picturesque landscapes and rich history make it a magnet for tourists, further enhancing its appeal for property investors.
With its combination of low property prices and potential rental income, Passau is becoming a go-to spot for savvy investors looking to capitalize on the city's growing popularity.
Sources: Numbeo, Global Property Guide, Airbtics
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12) Rosenheim is gaining interest for its scenic Alpine location and robust local economy driving property demand
Rosenheim is seeing a surge in property demand due to its stunning location near the Alps.
Imagine waking up to breathtaking mountain views and having endless outdoor adventures at your doorstep. That's what living in Rosenheim offers, and it's a big reason why people are flocking here. The city's charm is not just in its scenery but also in its vibrant local economy.
Rosenheim is perfectly positioned between Munich, Salzburg, and Innsbruck, making it a strategic spot for businesses. This location advantage means more job opportunities and economic growth, which naturally attracts more people looking to settle down.
Another big draw is Rosenheim's excellent connectivity. The city sits at the crossroads of major rail lines, making it super easy to get around. This accessibility is a huge plus for both residents and businesses, adding to the city's appeal.
With all these factors combined, it's no wonder that Rosenheim is becoming a hot spot for property investment. The mix of natural beauty, economic strength, and connectivity makes it a prime location for buying property.
Whether you're looking for a place to live or invest, Rosenheim offers a unique blend of lifestyle and opportunity that's hard to resist.
Sources: Germany Travel, Wikipedia, Rosenheim.de
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.