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Is Freiham a good place to buy property now?

Why are property buyers suddenly taking Freiham more seriously?

Freiham is much easier to take seriously as a place to buy property today because enough of the neighborhood now exists to judge it on reality rather than plans.

Munich is building one of Germany's largest new urban districts on its western edge. Depending on the city document, the finished Freiham is expected to accommodate roughly 25,000 to 30,000 residents and around 15,000 jobs across approximately 350 hectares.

For years, that scale was mostly a promise. The situation looks different these days. The Bildungscampus is operating, the Sportpark is finished, Freiham has its own S-Bahn station, the ZAM center has supermarkets and everyday shops, and thousands of residents already live in the district.

A large part of Freiham is still under construction, though. Munich only approved the framework for the second major realization phase in 2024, and development will continue well into the 2030s. The U5 remains years away.

That creates the interesting property question. We no longer have to guess whether Freiham will become a functioning neighborhood. It already is one. What we still have to decide is whether buyers are being compensated enough for living through the next stage of its development.

What matters to a buyer	Where Freiham stands now	What is still coming	What that means
S-Bahn	Already operating	Service can improve further	Useful immediately
Schools	Major campus already open	More capacity planned	Strong family infrastructure
Sport	Large Sportpark operating	District keeps expanding around it	Already tangible
Shopping	ZAM and everyday retail open	More businesses should follow	Much less speculative than before
U-Bahn	Planned and partly prepared for	U5 expected much later	Long-term upside
Mature streets and neighborhood life	Still developing	Years of construction ahead	Main compromise today

Is Freiham actually cheap compared with the rest of Munich?

Freiham is clearly cheaper than Munich overall today, although the discount becomes much less dramatic when we compare it with nearby western districts.

ImmoScout24 currently puts the average asking price for a Freiham apartment at about €6,463 per square meter. Its Munich-wide figure is roughly €7,800/m². That leaves Freiham around 17% below the city average.

Pasing is a more useful comparison because buyers considering Freiham often look west anyway. Apartments there are around €7,450/m², which puts Pasing roughly 15% above Freiham. Aubing is much closer, at around €6,700/m².

The distinction is important. A €6,500/m² Freiham apartment can look cheap next to central Munich or Pasing. It looks far more ordinary beside Aubing, Lochhausen or Germering.

There is another reason to be careful with neighborhood averages. Freiham still has a relatively small private resale market, and different property portals produce noticeably different estimates. Immoportal, for example, puts its Freiham apartment figure considerably higher than ImmoScout24. New builds, older properties and slightly different geographic definitions can move the average a lot.

We would therefore use €6,463/m² as a market reference, rather than treating it as Freiham's "real price." The individual apartment matters far more here than the headline neighborhood average.

Area	Approx. apartment asking price	Premium versus Freiham	What the comparison tells us
Freiham	€6,463/m²	—	Useful starting benchmark
Aubing	~€6,700/m²	~4%	Very similar pricing
Pasing	~€7,450/m²	~15%	Buyers pay for a much more mature center
Munich overall	~€7,800/m²	~21%	Freiham remains clearly cheaper
Germering	~€6,000/m²	Below Freiham	Crossing the city boundary still saves money

Are Freiham property prices going up again?

Freiham property prices currently look more stable than hot, so there is little evidence that buyers need to rush before another boom starts.

Munich's wider housing market went through a sizeable repricing after borrowing costs jumped from 2022 onward. The latest report from Munich's Gutachterausschuss suggests that phase has largely settled down. During the first half of 2026, resale apartment prices across Munich were roughly 1% above the comparable period a year earlier. New-build apartments were more mixed, depending on location.

Freiham does not look like an exception to that calmer market. ImmoScout24 says apartment asking prices remain about 11.6% below their second-quarter 2022 level. Another portal, Immoportal, also shows Freiham below its 2022 high.

That is a healthier setup for buyers than a rapidly accelerating market. Freiham's appeal today comes from buying after a correction while the neighborhood itself keeps improving. We see little reason to buy a mediocre unit simply because someone claims prices are about to take off.

Is Freiham cheap enough to make years of construction worth it?

Freiham can compensate buyers for the construction around them, but only when the apartment really carries a noticeable discount for that inconvenience.

Large parts of the district will keep changing. Munich's first realization phase alone includes thousands of homes, schools, childcare facilities, streets and public spaces, while the second phase will extend development farther north.

That creates unusually large differences between individual streets. An apartment overlooking a finished courtyard close to ZAM is already sitting inside a functioning piece of Freiham. Another apartment may face land that will become a building site for years.

Buyers sometimes price both as though they were buying the same neighborhood. We would not.

Noise, construction traffic, changing access routes and the loss of an apparently open view can affect daily life and resale appeal for a long time. A beautiful empty field beside an apartment is especially dangerous if the development plan shows another block there.

For a property surrounded largely by finished buildings, we can accept a smaller Freiham discount. Where the immediate environment still depends heavily on future construction, we would want the purchase price to reflect that very clearly.

Is Freiham well connected now, or do buyers still have to wait for the U5?

Freiham already has a usable connection to central Munich today, while the future U5 would make the district considerably better connected rather than rescue an isolated location.

Freiham station is served by the S8 and, during peak periods, the S5. The district currently gets three S-Bahn trains per hour and direction in normal periods and six during peak times. According to Freiham's district management, the ride into central Munich takes around 20 minutes from the station.

For an outer district, that is good.

The catch is the distance between the station and the apartment. Freiham is large, and buyers should care much more about the walk from their front door to the S-Bahn than about the official journey time from the platform to central Munich. Bus links are expanding as the district grows, but a genuinely walkable station remains valuable.

The U5 could eventually change the equation again. Munich has already approved the western extension, and preparatory structures for the future Freiham station are being built into the district. Current city planning puts the Freiham opening somewhere between 2035 and 2040, with local project information pointing toward 2040.

We would give the future U-Bahn some value when choosing between otherwise similar apartments. We would give it very little value when deciding how much to pay today. A buyer who sells in ten years may never use it.

Transport	Situation now	Future	How much we would value it today
S8	Operating	Remains core connection	High
S5 peak service	Operating	Adds useful capacity	Moderate to high
City-center trip	Around 20 minutes from Freiham station	Could improve indirectly	High if the apartment is close to the station
Local buses	Already operating and expanding	More routes with population growth	Moderate
U5	Approved, not operating	Freiham opening planned much later	Some upside, little reason to overpay
Second S-Bahn trunk line	Still under construction	Should improve the wider network	Helpful, but too distant to price aggressively

Does Freiham finally have enough shops, schools and everyday life?

Freiham now has enough everyday infrastructure to work as a real neighborhood, particularly for families, although it still feels much younger and thinner than Pasing or an established inner-Munich district.

ZAM has changed the practical side of living in Freiham. The district's current business directory includes Rewe, Lidl, dm, pharmacies, bakeries, restaurants, Woolworth and other shops and services around the center. Buyers no longer have to assume that basic retail will eventually arrive.

Education is even further ahead. The Bildungscampus has been operating since the 2019/20 school year and was designed for around 3,000 pupils. It combines a primary school, Realschule, Gymnasium and special-needs facilities.

Beside it, the Sportpark includes two triple sports halls, a swimming pool, outdoor pitches and athletics facilities. Munich built these amenities early enough that today's families can actually use them.

Freiham still cannot match Pasing for restaurants, independent businesses, mature streets and general bustle. That gap is obvious when we walk around both places. But the old argument that Freiham lacks the essentials has become outdated.

Will thousands of new apartments make Freiham property harder to resell?

Freiham's huge housing pipeline should create plenty of future demand, but it will also punish owners of apartments that look exactly like everything being built around them.

Munich expects Aubing-Lochhausen-Langwied, the borough containing Freiham, to grow more than any other district in the city. Its population is projected to rise by about 52,000 people between 2024 and 2045, an increase of roughly 85%. The city expects more than 10,000 additional homes over the same period.

That is extraordinary growth for Munich. It gives us considerable confidence that Freiham will keep gaining residents rather than becoming an oversized development with too few people.

The housing supply is growing for exactly the same reason, though. A buyer who eventually sells a conventional 70 m² two-bedroom apartment may compete against numerous newer apartments with similar balconies, energy standards and layouts.

The better strategy is to find something the next development phase cannot reproduce endlessly. A particularly quiet position, an open view that is protected by the plan, an excellent upper floor, an unusually large terrace, a strong layout or a short walk to the station can make a real difference.

In Freiham, scarcity inside the apartment matters more than scarcity of housing around it.

Are Freiham rents high enough to make buying a good investment?

Freiham rental yields are currently ordinary rather than exciting, so landlords need a long-term property story rather than expecting strong cash flow from day one.

ImmoScout24 puts average apartment asking rent in Freiham at €18.04/m², up about 2.9% year on year in its latest completed quarterly dataset. That is a healthy rent, but Munich is still more expensive.

If we combine €18.04/m² rent with the same portal's €6,463/m² apartment price, we get an indicative gross yield of roughly 3.35%.

That is only slightly better than Munich overall and roughly in line with Pasing once its higher rents are compared with its higher purchase prices. Freiham's lower purchase price therefore does not translate into a dramatically better yield.

A 3.35% gross return also disappears quickly once we include non-recoverable service charges, maintenance, vacancy, management and acquisition costs. Leveraged investors face an additional problem because mortgage rates are currently around 4%.

The investment case can still work. Population growth is unusually strong, the rental base should keep expanding and much of the neighborhood improvement remains ahead. We simply would not buy an average Freiham apartment for the rental yield alone.

Area	Approx. asking rent	Approx. purchase price	Indicative gross yield	Our read
Freiham	€18.04/m²	€6,463/m²	~3.35%	Fine for a long hold
Aubing	~€18.4/m²	~€6,700/m²	~3.3%	Very similar
Pasing	~€20.8/m²	~€7,450/m²	~3.35%	Higher rents, higher entry price
Munich overall	~€20.9/m²	~€7,800/m²	~3.2%	Slightly lower
Germering	~€17.4/m²	~€6,000/m²	~3.5%	A little stronger on yield

Is it cheaper to buy or rent an apartment in Freiham today?

Renting in Freiham is still much cheaper on monthly cash flow than buying the same kind of apartment with a normal mortgage.

Take a 70 m² apartment at roughly €6,463/m². The purchase price comes to about €452,000. At €18.04/m², comparable cold rent is around €1,260 a month.

Now finance 80% of the purchase price. The mortgage would be roughly €362,000. Dr. Klein's latest daily offers put a strong ten-year fixed mortgage at about 3.9% nominal interest, or roughly 4% effective.

With a 2% initial repayment rate, the mortgage payment lands around €1,780 a month before non-recoverable building costs. The buyer also needs equity for Bavaria's 3.5% property-transfer tax plus notary and land-registry costs.

Part of the €1,780 mortgage payment goes toward paying down the debt, so comparing it directly with rent would be misleading. Still, the cash-flow gap is large enough to matter.

Someone who expects to leave Freiham after four or five years has a difficult case for buying. Someone planning to stay 12 or 15 years can spread the transaction costs over a much longer period, build equity and potentially benefit from the neighborhood becoming more complete.

Should you pay extra for a new-build apartment in Freiham?

Paying a big new-build premium in Freiham is difficult to justify unless the apartment itself is unusually good, because new housing is the one thing this neighborhood has in abundance.

Munich's latest transaction data put newly built apartments across the city at around €9,800/m² in average locations, with good locations above €10,000/m². Individual Freiham developer projects can therefore sit far above the district's blended resale and asking-price averages.

The difference gets big very quickly. A 70 m² apartment bought at €6,500/m² costs €455,000. At €9,500/m², the same floor area costs €665,000. That is €210,000 more.

A new apartment may have lower energy use, better insulation, warranties, modern accessibility and little immediate renovation risk. Those advantages have genuine value.

"Brand new in Freiham" has much less scarcity value. Another new block will soon be finished nearby, followed by another one after that.

We would happily pay more for an excellent floor plan, protected view, large terrace or exceptional micro-location. We would be reluctant to pay €200,000 extra mainly for a newer completion year.

Could Freiham become more expensive than Aubing or catch up with Pasing?

Freiham has a credible chance of becoming more expensive relative to its western neighbors, but expecting it to catch Pasing completely would be aggressive.

The easiest comparison is Aubing. Prices there are already only slightly above Freiham, even though Aubing is far more established. As Freiham gains residents, trees, shops and finished public spaces, that small gap could disappear.

Germering is another useful benchmark. It offers lower prices and an established environment but sits outside Munich. Freiham carries the Munich address, enormous municipal investment and much stronger planned population growth. Over a long holding period, we prefer those structural advantages if the initial purchase prices are reasonably close.

Pasing is harder to catch. Its premium buys a major railway station, mature retail, established streets, restaurants and a neighborhood that already works at full scale. Freiham can become much better without becoming another Pasing.

The strongest appreciation case is fairly simple: some of today's unfinished-neighborhood discount gradually fades as Freiham becomes normal Munich. We would underwrite that possibility. We would not underwrite Freiham suddenly turning into one of western Munich's premium districts.

What could actually go wrong if you buy property in Freiham now?

The main Freiham property risk today is overpaying for the future, especially when that future may arrive later than the sales brochure suggests.

Transport is the clearest example. As seen above, the U5 extension would be a major improvement, but current planning puts its arrival far enough away that many buyers will sell before the first train reaches Freiham.

Construction is another risk. An apartment can look attractive today because it faces open land, has light from several directions or sits on a quiet street. The legally approved development plan may tell a very different story about what will stand there later.

Then there is resale competition. The wider borough is expected to add more than 10,000 homes by 2045. A generic apartment will keep competing with fresher stock.

Financing gives buyers less room for mistakes as well. Strong ten-year mortgage offers currently sit around 4%, while the latest Munich market data show price stabilization rather than another fast boom. Paying 10% too much cannot easily be hidden by cheap debt or immediate market appreciation.

None of those risks makes Freiham a bad place to buy. They simply make the purchase price and exact address much more important than the neighborhood name.

Who should actually buy in Freiham, and what kind of apartment makes sense?

Freiham currently suits long-term owner-occupiers far better than short-term investors, and we would choose the apartment based on what already works around it rather than what might exist one day.

A family expecting to stay for a decade or longer has the clearest case. Schools, sport, shopping and the S-Bahn are already there. During that holding period, large parts of the surrounding district should gradually finish.

A landlord can also make Freiham work, especially with substantial equity. Rental demand should benefit from the population increase, but the roughly 3.35% indicative gross yield leaves little room for a bad purchase price.

We would be far more hesitant with a buyer planning to sell in three to five years. Acquisition costs are high, financing is still expensive, construction will continue and the largest future transport upgrade remains distant.

Within Freiham itself, we would look first for a comfortable walk to the existing S-Bahn, a quiet position, useful outdoor space, an efficient layout and a view that the approved building plan cannot easily destroy. Finished surroundings are worth paying something for.

A developer brochure promising what Freiham will become in 2040 would have almost no influence on our price.

Buyer	How Freiham looks today	Main reason
Family staying 10–15 years	Strong	Existing schools plus years of neighborhood improvement
Couple buying a long-term home	Strong	Lower entry price than much of Munich
Cash-rich landlord	Reasonable	Strong population growth, ordinary yield
Highly leveraged landlord	Weak to moderate	Financing costs absorb much of the rental return
Buyer selling within 3–5 years	Weak	Transaction costs and ongoing construction
Speculator betting mainly on the U5	Weak	The payoff is too far away

Is Freiham a good place to buy property now?

Yes. Freiham is a good place to buy property now if we are buying for the long term and remain disciplined on price; for a short-term investor, the case is much weaker.

The district has crossed an important threshold. Freiham already has an S-Bahn connection, a 3,000-pupil education campus, major sports facilities, supermarkets, pharmacies and an operating district center. These are things we can visit and use today. At the same time, Munich still expects the surrounding borough to add roughly 52,000 residents by 2045, making it the fastest-growing district in the city.

We also still get some price compensation for going west. Current apartment asking prices around €6,463/m² sit well below Munich's overall level and roughly 15% below Pasing. That discount becomes less impressive beside Aubing, which tells us something important: Freiham is already past the stage where everything looks obviously cheap.

Rental investors should be more cautious. Current rents of roughly €18/m² produce only about a 3.35% indicative gross yield, while strong mortgage offers hover around 4%. The numbers can work over time, but there is no big cash-flow bargain hiding here.

The opportunity is strongest when we find an apartment whose price still reflects today's inconveniences while its immediate location is already usable. Somewhere around €6,500–€7,000/m² can be interesting for a good existing or nearly new apartment, depending heavily on the building and street. Once an ordinary unit moves toward €9,000–€10,000/m², we would become much harder to convince because the seller is already charging for a large part of Freiham's future.

Freiham currently looks like one of Munich's better long-term transformation bets. We would buy the right apartment there for ten or fifteen years. We would not chase it for a quick gain.

Fact-checked and reviewed by our local expert

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Nicholas Runtic

CEO and cofounder of LDP Group

Based in Munich, Nicholas Runtic is CEO and co-founder of LDP Group, a real estate investment firm serving international professionals in Germany. His background in finance, private banking, and property investing gives him a strong understanding of Munich’s competitive market and the importance of selecting high-quality assets for long-term wealth creation.

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