Authored by the expert who managed and guided the team behind the Germany Property Pack
Yes, the analysis of Munich's property market is included in our pack
If you are considering buying a property in Munich, you are probably wondering whether it is a good time to do so, or if you should wait.
In this blog post, we look at housing prices in Munich as of the first half of 2026, and we constantly update this article as things change in the local market.
Our goal is to give you clear, data-backed answers so you can make the best decision for your situation.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Munich.
So, is now a good time?
As of early 2026, Munich is a "rather yes" for buying property, especially if you plan to live in it or hold for at least five to ten years.
The strongest signal is that national prices have been rising again for four straight quarters after the 2022 to 2023 correction, and Munich's local transaction activity picked up in 2025, which typically means the market has found its floor.
Another strong signal is that Munich's residential vacancy rate sits near 0.2%, among the lowest in Europe, which means demand far exceeds supply and supports both rents and prices.
Other supportive signals include mortgage rates stabilizing around 3% to 4%, building permits running well below the 320,000 units Germany needs each year, and continued population growth in Munich driven by strong employment in tech, automotive, and finance.
The best strategies right now are to focus on two to three bedroom apartments near S-Bahn or U-Bahn stations in districts like Schwabing, Sendling, or Haidhausen if you want liquidity, or look at family houses in Pasing or Laim if you need more space and can hold long-term.
This is not financial or investment advice, we do not know your personal situation, and you should do your own research or speak to a qualified professional before making any decisions.
Is it smart to buy now in Munich, or should I wait as of 2026?
Do real estate prices look too high in Munich as of 2026?
As of early 2026, Munich property prices remain expensive by almost any measure, but they no longer look like a peak mania since values sit roughly 10% to 15% below the 2022 highs in real terms after the correction.
One clear on-the-ground signal that supports this view is that price reductions on listings have become less common than they were in 2023, and well-priced apartments in connected neighborhoods like Schwabing or Haidhausen still attract multiple interested buyers within weeks.
Another signal worth noting is that the average time on market for resale apartments in Munich hovers around 60 to 90 days for typical stock, which is longer than the frenzy years of 2021 but much shorter than a distressed market, suggesting prices have reached a level buyers will accept.
You can also read our latest update regarding the housing prices in Munich.
Does a property price drop look likely in Munich as of 2026?
As of early 2026, the likelihood of a meaningful price decline in Munich over the next 12 months is low, because the correction already happened in 2022 to 2023 and the market has since stabilized with transaction activity returning.
A plausible downside-to-upside range for Munich prices over the next year is roughly minus 5% to plus 5%, meaning a small dip is possible if rates spike again, but a crash is unlikely given structural supply shortages.
The single most important macro factor that could trigger a price drop in Munich is a sharp rise in mortgage rates, because monthly payments are already stretched relative to incomes, and any increase would immediately shrink the buyer pool.
However, this factor looks unlikely in the near term since the ECB has signaled a stable to slightly easing stance and German 10-year fixed mortgage rates have settled into the 3% to 4% range, giving buyers more predictability than they had in 2022.
Finally, please note that we cover the price trends for next year in our pack about the property market in Munich.
Could property prices jump again in Munich as of 2026?
As of early 2026, the likelihood of a renewed price surge in Munich is medium, meaning prices could grind higher by 2% to 5% over the next 12 months, but a sharp spike like 2020 to 2021 is unlikely unless rates drop dramatically.
A plausible upside range for Munich prices over the next year is plus 3% to plus 6% in the best-case scenario, driven by tight supply and returning buyer confidence, though this would require mortgage rates to stay stable or fall slightly.
The single biggest demand-side trigger that could push Munich prices higher is a further easing of ECB rates combined with continued strong employment in Munich's tech and automotive sectors, which would bring sidelined buyers back into the market quickly.
Please also note that we regularly publish and update real estate price forecasts for Munich here.
Are we in a buyer or a seller market in Munich as of 2026?
As of early 2026, Munich is a cautiously re-tightening balanced market that leans slightly toward sellers in prime locations but gives buyers more negotiating room in peripheral districts or for properties with poor energy ratings.
Munich does not publish a single months-of-inventory figure, but based on listing volumes and transaction pace, the effective supply in desirable neighborhoods like Maxvorstadt or Neuhausen feels like roughly two to four months, which typically favors sellers.
The share of listings with price reductions in Munich has declined from the highs of 2023, and our estimates suggest around 15% to 25% of listings see a cut before selling, which indicates sellers still have reasonable leverage if they price realistically from the start.
We have made this infographic to give you a quick and clear snapshot of the property market in Germany. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Are homes overpriced, or fairly priced in Munich as of 2026?
Are homes overpriced versus rents or versus incomes in Munich as of 2026?
As of early 2026, Munich homes look overpriced by pure rental yield math since gross yields typically run around 2% to 2.8% for apartments, which is well below what would cover mortgage costs, but this is normal for a city where buyers also pay for stability and scarcity.
The price-to-rent ratio in Munich currently sits around 35 to 45 times annual rent for a typical apartment, which is far above the 20 to 25 range often considered balanced, and it reflects the premium buyers accept for owning in Germany's strongest local economy.
The price-to-income multiple in Munich is roughly 12 to 16 times a middle to upper-middle household's annual net income for a family-sized property, which is stretched by historical standards and means small rate changes have a big impact on affordability.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Munich.
Are home prices above the long-term average in Munich as of 2026?
As of early 2026, Munich prices remain above their long-term trend in nominal terms but are roughly 10% to 15% below the 2022 peak when adjusted for inflation, meaning the market has corrected but not collapsed.
The recent 12-month price change in Munich is around plus 2% to plus 4% in nominal terms, which is slower than the pre-pandemic pace of 8% to 10% annually but represents a clear return to growth after the 2023 decline.
In inflation-adjusted terms, Munich prices are still below their 2022 cycle peak, meaning buyers today are getting better value than those who bought at the top, even if nominal prices have stabilized.
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What local changes could move prices in Munich as of 2026?
Are big infrastructure projects coming to Munich as of 2026?
As of early 2026, the single biggest planned infrastructure project in Munich is the second S-Bahn trunk line (2. Stammstrecke), which is expected to relieve the chronically overloaded central rail corridor and improve commute times for neighborhoods across the city.
The second S-Bahn trunk line is fully funded and under construction, with completion expected around the late 2020s, and the areas most likely to see price benefits include Haidhausen, Berg am Laim, Laim, and Pasing, where better rail reliability makes daily commuting more tolerable.
For the latest updates on the local projects, you can read our property market analysis about Munich here.
Are zoning or building rules changing in Munich as of 2026?
The most important zoning-related discussion in Munich centers on the city's ongoing "Wohnen in München" housing programs and the SoBoN framework, which requires developers to include affordable units when land is rezoned, affecting what gets built and at what price point.
As of early 2026, the net effect of these zoning and building rules is to slow the pace of market-rate new construction while increasing affordable housing quotas, which keeps supply tight for private buyers and supports prices in existing stock.
The areas most affected by these rule changes in Munich are the large development zones on the city's edges like Freiham in the west, where new housing is being built but with significant affordable housing requirements that limit the number of open-market units available.
Are foreign-buyer or mortgage rules changing in Munich as of 2026?
As of early 2026, there are no significant foreign-buyer restrictions being introduced in Munich, and the main rule changes affecting prices continue to be on the financing side, where mortgage rates have stabilized but remain much higher than the sub-1% levels of 2020 to 2021.
Germany does not have foreign-buyer bans, special taxes, or quotas like some other countries, so international buyers can still purchase freely in Munich, though they may face stricter bank documentation requirements and typically need a 20% down payment.
On the mortgage side, German banks have maintained their standard loan-to-value limits of around 80% for most buyers, and the main change is that 10-year fixed mortgage rates have settled into the 3.5% to 4.5% range, making monthly payments predictable but more expensive than before 2022.
You can also read our latest update about mortgage and interest rates in Germany.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Germany versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Will it be easy to find tenants in Munich as of 2026?
Is the renter pool growing faster than new supply in Munich as of 2026?
As of early 2026, renter demand in Munich is growing faster than new rental supply, because the city continues to attract workers in tech, finance, and automotive while building permits remain well below what is needed to close the gap.
The clearest signal of renter demand in Munich is continued population growth, with the city on track to reach 1.8 million residents by 2040, driven by strong employment and international migration that keeps the tenant pool expanding.
On the supply side, Germany needs roughly 320,000 new housing units per year through 2030 according to federal estimates, but recent completions have been closer to 200,000 to 215,000 nationally, and Munich feels this shortage acutely because it is one of the country's highest-demand markets.
Are days-on-market for rentals falling in Munich as of 2026?
As of early 2026, well-priced rentals in Munich typically find tenants within 20 to 30 days, which is near the practical minimum, and this time-to-let has remained stable or even shortened slightly compared to last year as demand continues to outstrip supply.
The difference in days-on-market between Munich's best areas like Maxvorstadt or Schwabing and weaker peripheral districts can be significant, with central units often renting in under two weeks while overpriced or poorly located listings may sit for 60 days or more.
The main reason days-on-market stays low in Munich is the extreme undersupply, with residential vacancy rates around 0.2% to 0.5% meaning there are simply far more renters searching than units available at any given time.
Are vacancies dropping in the best areas of Munich as of 2026?
As of early 2026, vacancy rates in Munich's best rental areas like Schwabing-West, Maxvorstadt, Au-Haidhausen, and Neuhausen-Nymphenburg remain extremely low, typically under 0.5%, and they have stayed at or near these record lows for several years.
The vacancy rate in these top neighborhoods is essentially at frictional levels, meaning units are only vacant during turnover, while the broader Munich market also sits well below the 2.5% national average.
One practical sign that the best areas are tightening first in Munich is that landlords in Schwabing or Maxvorstadt can now be highly selective with tenant applications, often receiving ten or more qualified applicants within days of listing, which was less common even five years ago.
By the way, we've written a blog article detailing what are the current rent levels in Munich.
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Munich as of 2026?
Is for-sale inventory shrinking in Munich as of 2026?
As of early 2026, for-sale inventory in Munich is difficult to measure precisely because there is no single official count, but transaction data suggests the market is not becoming oversupplied, and the number of deals rose in 2025 while prices stayed flat, which typically means buyers absorbed available stock.
Based on listing volumes and transaction pace, the effective months-of-supply in Munich's desirable neighborhoods feels like roughly two to four months, which is below the five to six months that typically defines a balanced market and suggests conditions still favor sellers.
The most likely reason inventory is not growing is that many Munich homeowners locked in low fixed-rate mortgages before 2022 and have little incentive to sell and refinance at today's higher rates, which keeps listings scarce even as buyer demand returns.
Are homes selling faster in Munich as of 2026?
As of early 2026, the median time-to-sell for homes in Munich is roughly 60 to 90 days for typical resale apartments and somewhat longer for houses, and this pace has improved modestly compared to 2023 when the market was more hesitant.
Year-over-year, the median days-on-market in Munich has likely shortened by around 10% to 20% as buyer confidence returned and mortgage rate volatility subsided, though the market is still slower than the frenzy years of 2020 to 2021 when properties sold in weeks.
Are new listings slowing down in Munich as of 2026?
As of early 2026, we are not confident in a precise year-over-year change for new listings in Munich, but the pattern suggests new supply is constrained rather than flooding the market, because homeowners with low fixed-rate mortgages are reluctant to sell.
Munich's seasonal pattern for new listings typically shows more activity in spring (March to May) and autumn (September to October), with winter months like January being slower, and current levels appear consistent with this normal rhythm rather than unusually low.
The most plausible reason new listings are not rising faster in Munich is the "rate lock-in" effect, where owners who secured mortgages at 1% to 2% before 2022 would face 3.5% to 4.5% rates on a new purchase, making it financially painful to move unless necessary.
Is new construction failing to keep up in Munich as of 2026?
As of early 2026, new housing construction in Munich and Germany overall is clearly failing to keep up with demand, since the country needs roughly 320,000 units per year through 2030 but completions are running closer to 200,000 to 215,000, and Munich feels this gap acutely.
Building permits in Germany have been trending downward since their peak, with recent years showing the lowest permit volumes since 2010, and the Ifo Institute forecasts completions will decline further before any recovery begins around 2027.
The single biggest bottleneck limiting new construction in Munich is a combination of high construction costs, lengthy permitting processes, and limited available land within the city boundaries, all of which make it expensive and slow to bring new units to market.
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.
Will it be easy to sell later in Munich as of 2026?
Is resale liquidity strong enough in Munich as of 2026?
As of early 2026, resale liquidity in Munich is strong compared to most of Germany, meaning a realistically priced property in a decent location will typically find a buyer within two to four months, which is much faster than in smaller cities or rural areas.
The median days-on-market for resale homes in Munich runs around 60 to 90 days for apartments and somewhat longer for houses, which is above the "healthy liquidity" benchmark of 30 to 60 days but still indicates a functioning market with active buyer demand.
The property characteristic that most improves resale liquidity in Munich is proximity to public transit, especially S-Bahn or U-Bahn stations, because buyers prioritize commute convenience and units within a 10-minute walk of a station consistently sell faster.
Is selling time getting longer in Munich as of 2026?
As of early 2026, selling time in Munich is modestly longer than it was during the 2020 to 2021 boom but has stabilized or even shortened compared to the hesitant 2023 market, reflecting a return of buyer confidence as rate volatility subsided.
The current median days-on-market in Munich is roughly 60 to 90 days, with a realistic range of 30 days for very desirable units in prime locations to 120 days or more for overpriced, poorly located, or energy-inefficient properties.
One clear reason selling time can lengthen in Munich is affordability pressure, because when monthly mortgage payments consume a large share of buyer incomes, any property priced even slightly above market will sit longer as buyers have less room for error.
Is it realistic to exit with profit in Munich as of 2026?
As of early 2026, the likelihood of selling with a profit in Munich is medium to high if you hold for at least five to seven years, but trying to flip in one to three years is risky because transaction costs can eat into any short-term gains.
A realistic minimum holding period in Munich to exit with profit is around five to seven years for a typical owner-occupier, or longer for investors who need rental income to offset costs before prices appreciate enough to cover transaction expenses.
The total round-trip cost drag in Munich, including notary fees, land transfer tax (3.5% in Bavaria), agent commission, and other closing costs, runs roughly 9% to 12% of the purchase price (around 60,000 to 80,000 euros on a 650,000 euro apartment, or $70,000 to $95,000 USD).
One clear factor that increases profit odds in Munich is buying a property with upside potential, such as an unrenovated apartment in a good location where modest improvements or better energy efficiency can boost value above comparable sales.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Munich, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| German Federal Statistical Office (Destatis) | Germany's official statistics agency with the headline national house price dataset. | We used it to anchor Germany-wide price direction and recovery timing. We then treated Munich as a premium market and checked if local evidence supported the national trend. |
| Deutsche Bundesbank | Germany's central bank with vetted property price monitoring data. | We used it to triangulate the national turning point after the 2022-2023 downturn. We also used their mortgage rate series to frame financing conditions. |
| Gutachterausschuss Munich | Munich's official valuation committee using notarized transaction evidence. | We used it to ground the article in Munich-specific transactions, volume, and price tone. We relied on their "stagnation" wording to avoid over-claiming a boom. |
| Munich Mietspiegel 2025 | The city's official rent reference, the most defensible local rent source. | We used it to anchor realistic baseline rents per square meter. We then used it to estimate gross yields and rent-versus-buy tensions. |
| European Central Bank | The euro area's central bank whose policy rates drive mortgage pricing. | We used it to frame financing conditions as of 2026. We then tied rate stability to returning buyer competition. |
| BBSR (Federal Institute for Building Research) | A federal research body that quantifies housing need and new-build requirements. | We used it to quantify the national shortage pressure of 320,000 units per year. We then explained why Munich sits on the high-need end of that distribution. |
| Deutsche Bahn 2. Stammstrecke | The official project site for Munich's biggest transit capacity upgrade. | We used it as the authoritative reference that the project is progressing. We then translated it into which areas benefit most. |
| City of Munich Planning Overview 2025-2026 | Official city planning document showing what's being built and prioritized. | We used it to identify local changes that can move prices like housing policy and development areas. We then linked those to neighborhoods that typically reprice first. |
| vdp Property Price Index | A banking-sector index based on transaction and financing data, widely cited. | We used it to confirm whether prices were stabilizing or re-accelerating nationally. We also used it to sanity-check direction versus Destatis. |
| OECD Housing Prices Methodology | A trusted international organization with transparent affordability ratio definitions. | We used it for the methodology behind price-to-income and price-to-rent comparisons. We then applied those concepts to Munich with buyer-friendly interpretations. |
| City of Munich Population Statistics | Official city statistics, the most direct source for local demand drivers. | We used it to support the structural demand story. We also used it to explain why Munich behaves differently than many German regions in downturns. |
| empirica Housing Market Index | A long-running German research provider with systematic housing market indicators. | We used it as a supply-demand temperature check for Germany's market mood. We then kept Munich conclusions consistent with the wider market direction. |
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.
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