Is buying a property in Haidhausen a good investment?

Last updated on December 29, 2023

Yes, the analysis of Munich's property market is included in our pack

If you've appreciated the cultural scene and riverside beauty of Haidhausen, you may have thought about investing in property in this Munich district.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Germany, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Haidhausen?

Haidhausen, often referred to as the "French Quarter" of Munich has become an increasingly attractive location for property buyers, blending a unique charm and a strategic location that differentiates it from other real estate markets in the city.

What sets Haidhausen apart is its blend of bohemian flair and upscale living, offering a quieter, more residential feel compared to the bustling center of Munich.

This area, with its quaint streets lined with cafes, boutiques, and art galleries, exudes a village-like atmosphere within the larger urban landscape of Munich.

The popularity of Haidhausen as a residential area began to surge in the late 20th century. Initially, it was a working-class neighborhood, but it has transformed significantly over the years.

The renovation of many of its historic buildings in the 1980s and 1990s, coupled with the development of new, modern housing, has made it a sought-after location. This blend of old-world charm and contemporary living appeals to a broad spectrum of property buyers.

In terms of how it compares to other areas in Munich, Haidhausen offers a more relaxed lifestyle. While districts like Schwabing or Maxvorstadt are known for their vibrant nightlife and cultural scenes, Haidhausen attracts those who prefer a quieter, more laid-back environment.

It's particularly popular among young professionals, families, and expatriates who appreciate the area's cultural diversity, excellent connectivity to the rest of the city, and the relatively spacious living accommodations.

However, this popularity and the area's desirability have led to a steady increase in property prices. This makes Haidhausen less accessible for budget-conscious buyers, contrasting with more affordable areas in Munich.

Additionally, its rising popularity might not necessarily translate into a long-term hype. Property markets are subject to fluctuations, and while Haidhausen currently enjoys a high level of interest, external factors like economic conditions and urban development plans elsewhere in Munich could impact its appeal in the future.

While Haidhausen is attractive for many, it's not without its weaknesses. The high property prices can be a deterrent, and for those seeking a bustling nightlife or a more central urban experience, Haidhausen might feel too removed, despite its good public transport links.

The area also faces challenges like limited parking spaces and, in some parts, a scarcity of green spaces compared to other districts in Munich.

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Why is Haidhausen a nice place to live?

Haidhausen is often considered a gem for those seeking a balanced urban lifestyle, combining the charm of a quaint neighborhood with the conveniences of city living.

The lifestyle and culture in Haidhausen are marked by a relaxed and community-oriented atmosphere. It's a place where the hustle of the city seems to slow down, allowing residents to enjoy leisurely strolls along its tree-lined streets, visits to cozy cafes, and browsing through unique boutiques.

This area is known for its beautiful architecture, with many historic buildings lending an air of old-world charm.

The expat community in Haidhausen is thriving, thanks in part to the area's diverse and welcoming vibe. It's common to hear different languages spoken in its streets, and there are numerous international restaurants and shops catering to a variety of tastes and backgrounds.

This cultural diversity makes it an attractive place for expatriates who are looking for a sense of community in a foreign city.

Living in Haidhausen does come with a cost. The area is considered one of the more upscale neighborhoods in Munich, and the cost of living reflects this.

Rent and property prices tend to be higher than in other parts of the city, which might be a consideration for some. Many find that the quality of life and the amenities offered justify the expense.

Safety is one of Haidhausen's strong suits. It is generally considered a very safe area with low crime rates, which adds to its appeal for families and those who prioritize security in their living environment.

In terms of amenities and facilities, Haidhausen is well-equipped. For educational needs, there are several schools, including the Gisela Gymnasium.

Healthcare is readily accessible with facilities like the Klinikum rechts der Isar, a major hospital associated with the Technical University of Munich. For shopping and entertainment, the neighborhood is dotted with various independent shops, and the nearby Ostbahnhof offers larger retail options.

The infrastructure in Haidhausen is robust, with well-maintained roads, reliable utilities, and excellent internet connectivity. These aspects contribute significantly to the high standard of living in the area.

Accessibility is another strong point for Haidhausen. It's well-connected to other parts of Munich, making it easy for residents to commute for work or leisure.

The neighborhood is served by several U-Bahn and S-Bahn stations, like Rosenheimer Platz and Ostbahnhof, ensuring quick access to the city center and other districts.

The Munich East station (Ostbahnhof) is a major transport hub, providing both local and long-distance connections, including trains to the Munich Airport.

Public transportation options in Haidhausen are plentiful. The area is well-served by a network of buses, trams, and the aforementioned underground (U-Bahn) and city rail (S-Bahn) services.

This makes getting around not only easy but also a viable alternative to driving, considering the challenge of finding parking in this densely populated area.

All in all, Haidhausen offers a blend of cultural richness, safety, and accessibility, combined with high-quality amenities and infrastructure, making it a highly desirable place to live for those who can afford it.

Its balance of a peaceful, community-oriented lifestyle with the convenience of urban living makes it a unique and appealing choice in Munich.

How much does it cost to buy real estate in Haidhausen?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Germany.

Buying a property in Haidhausen is a decision that involves considering various factors, including the type of property, current market trends, and future predictions.

In Haidhausen, the residential properties primarily consist of apartments, including both old-building apartments (Altbau) with historical charm and modern, newly constructed or renovated units. Houses and luxury villas are less common but can be found in the adjacent areas.

The demand for properties in Haidhausen is particularly high for apartments, especially those that blend historical features with modern amenities.

This is due to the area's appealing blend of a vibrant cultural scene and a peaceful residential atmosphere, making it popular among young professionals, families, and expatriates.

The charm of old buildings, coupled with the convenience of modern living, makes these types of properties highly sought after.

The property market in Haidhausen is characterized by a mix of resale properties and new developments. While there's a significant number of older buildings, recent years have seen the development of new residential projects, adding a touch of modernity to the area's historic feel.

These new developments often command a higher price due to their modern features and amenities.

Speaking of prices, the cost of buying property in Haidhausen varies widely. The prices per square meter for properties in Haidhausen were among the highest in Munich.

For a standard apartment, prices could range significantly, often depending on factors like the age of the building, its condition, and the exact location within the neighborhood.

You could expect a wide range in prices, with more luxurious or newly renovated properties at the higher end of this spectrum.

Over recent years, property values in Haidhausen have shown an upward trend. This is largely due to the neighborhood's increasing popularity, its central location, and the overall high demand for properties in Munich.

As with any real estate market, these values are subject to fluctuations based on broader economic conditions and local developments.

Looking to the future, there are several factors to consider regarding potential developments or city planning changes that might affect property values in Haidhausen.

The area's ongoing popularity, the limited availability of new land for development, and the general trend towards urban living suggest that property values are likely to remain high or even increase.

However, any specific upcoming developments or city planning changes would need to be monitored as they can have a significant impact on local real estate markets.

In terms of predictions for the real estate market in Haidhausen in the coming years, it's reasonable to expect that the area will continue to be in high demand, particularly if the current trends in lifestyle preferences and urban living continue.

Factors like Haidhausen's desirable location, the blend of cultural and historical charm with modern amenities, and the overall quality of life in the area are likely to continue driving interest in the neighborhood.

Finally, specific factors indicating a potential increase in property value in Haidhausen include the ongoing urbanization and gentrification of the area, the limited availability of new properties, and the general desirability of living in central Munich locations.

However, it's important to remember that the real estate market can be unpredictable and influenced by a multitude of factors, both local and global.

Where is the best area to buy a property in Haidhausen?

When considering the best area to buy a property in Haidhausen, it's essential to understand the diverse nature of this neighborhood.

Haidhausen is quite varied in its offerings, with different parts of the area differing significantly in terms of atmosphere, property types, and prices.

One of the most sought-after parts of Haidhausen is the area around Pariser Platz and Bordeauxplatz. These areas are known for their beautiful Altbau (old building) apartments, which often feature high ceilings and charming period details.

The atmosphere here is quintessentially Haidhausen – quiet, quaint, and with a strong sense of community. Properties in these areas tend to be at the higher end of the price spectrum, reflecting their desirability and the architectural beauty of the buildings.

Another notable area within Haidhausen is around the Wiener Platz. This area is bustling with activity, hosting a popular market and numerous cafes and restaurants.

The properties here are a mix of old and new, with many apartments offering modern amenities. The lively atmosphere makes it a great spot for those who enjoy having amenities and social opportunities right on their doorstep.

However, this also means that property prices can be quite high, as demand is consistently strong.

For buyers looking for up-and-coming areas within Haidhausen, the regions near Ostbahnhof (East Station) are worth considering. This area is undergoing gradual transformation, with new developments and renovations bringing modern flair to the traditional neighborhood.

The proximity to Ostbahnhof also means excellent transport connections, adding to the area's appeal. While currently, these areas might offer more attractive prices, the ongoing development suggests that property values are likely to increase over time.

On the contrary, areas closer to the outer edges of Haidhausen, near the railway lines or busy thoroughfares, might be less advisable for property buyers seeking a quieter residential experience. These areas can be noisier and lack the intimate, village-like atmosphere found in the heart of Haidhausen.

While properties in these areas might be more affordable, they don't quite offer the same charm or community feel that Haidhausen is famed for.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Germany.

Area	Characteristics	Property Types	Price Range
Pariser Platz and Bordeauxplatz	Quiet, quaint, strong community feel, beautiful old buildings	Altbau apartments	Higher end
Wiener Platz	Lively, bustling with activity, popular market, cafes and restaurants	Mix of old and new apartments	High
Near Ostbahnhof	Transforming area, modern developments, excellent transport connections	New developments and renovated buildings	More affordable, potential for future value increase
Outer edges, near railway lines/busy thoroughfares	Noisier, lacks the intimate atmosphere of central Haidhausen	Varied, potentially less expensive options	More affordable

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Is there a strong rental demand in Haidhausen?

In Haidhausen, there's a strong and steady demand for rental properties, shaped largely by the area's charm, central location, and the lifestyle it offers.

The rental market in Haidhausen caters more to long-term rentals than short-term. This is due to a combination of local regulations that restrict short-term lettings and a steady influx of residents seeking a more permanent place in the city.

The target demographic for rental properties in Haidhausen is quite diverse. It includes young professionals, often working in the tech or finance sectors, who are attracted to the area's vibrant yet laid-back lifestyle.

Expatriates form a significant portion of the potential tenants, drawn to Haidhausen's multicultural atmosphere and its excellent connectivity to other parts of Munich.

Families are also a key demographic, appreciating the area's safety, the proximity of good schools, and the family-friendly amenities.

When it comes to the profiles of potential tenants, they are typically looking for modern comforts blended with the historical charm that Haidhausen is known for. Properties that balance these elements—like renovated Altbau apartments—are particularly in demand.

These tenants often seek apartments with one or two bedrooms, equipped with modern amenities like fitted kitchens, high-speed internet, and energy-efficient features.

In terms of specific areas within Haidhausen, the neighborhoods around Pariser Platz, Bordeauxplatz, and Wiener Platz are particularly popular. These areas offer a quintessential Haidhausen living experience, combining urban convenience with a sense of community. The proximity to local markets, cafes, and parks in these areas adds to their appeal.

To reduce vacancy and attract tenants, amenities that align with the lifestyle expectations of the target demographics are crucial.

This includes proximity to public transportation, especially given Haidhausen's well-connected nature. Features like balconies, access to green spaces, or being pet-friendly can also be significant draws.

For families, proximity to schools and parks is a key factor. For young professionals and expatriates, easy access to nightlife, cultural venues, and shopping areas is often important.

Regarding the potential returns on investment for properties in Haidhausen, they can be quite promising. Due to the high demand and the area's desirability, landlords can expect a steady rental income.

While specific numbers vary, the return on investment in Haidhausen is generally considered to be higher than in many other parts of Munich, reflecting both the high rental demand and the premium that tenants are willing to pay for a desirable location and high-quality living space.

Lastly, the type of properties that are seeing increasing demand and could potentially offer better yields are those that combine historical charm with modern amenities.

Apartments in Altbau buildings that have been thoughtfully renovated to offer contemporary comforts while retaining their unique character are particularly sought after.

Such properties not only attract a wide range of tenants but also tend to retain their value well, making them a potentially lucrative investment for the future.

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Is it easy to buy a property as foreigner in Haidhausen?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Germany.

Buying a property in Haidhausen, Munich as a foreigner is relatively straightforward, thanks to Germany's open approach to foreign property ownership.

There are no specific regulations or restrictions that exclusively apply to foreign buyers in Germany, which makes the process akin to that for German nationals. There are certain nuances and considerations that foreign buyers should be aware of.

Firstly, the purchasing process in Haidhausen, like in the rest of Germany, involves several key steps. After selecting a property, you would make an offer through a real estate agent. Once accepted, a notary (Notar) drafts the purchase agreement.

The notary plays a crucial role in the process, ensuring legality and fairness. A key point to note is that notary fees, along with property transfer taxes and possible agent fees, add significant additional costs to the purchase – typically around 7-15% of the property price.

One of the primary risks associated with property investment in Haidhausen relates to the fluctuating real estate market, which can affect property values.

Additionally, as a sought-after area, Haidhausen properties come with a high price tag, so buyers should be financially prepared.

Another risk is potential hidden costs associated with property maintenance, especially in older buildings, which might require more upkeep.

A classic pitfall for foreign buyers in Germany is not fully understanding the legal and financial aspects of the property transaction. This can include underestimating additional purchase costs or not being fully aware of property rights and regulations.

Unique to Germany is the principle of "Kauf bricht nicht Miete", which means that if the property is rented, the tenant's lease continues unchanged even after the property is sold, potentially impacting immediate occupancy plans.

Working with a local real estate agent and a lawyer is highly advisable, especially if you are not fluent in German. They can guide you through the complexities of the purchasing process, help negotiate terms, and ensure that all legal requirements are met.

Additionally, they can provide invaluable insight into the local property market and help identify properties that meet your specific needs.

Common exit strategies for property investors in Haidhausen include selling the property after a period of appreciation or renting it out. The rental market in Haidhausen is robust, so leasing the property can provide a steady income stream.

When selling, understanding the best timing in the market cycle is crucial. It's worth noting that in Germany, if you sell a property within ten years of purchasing it, capital gains tax may apply, which should be factored into your investment strategy.