How expensive are homes in Munich now?

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How expensive are homes in Munich right now?

Munich homes are still extremely expensive today: around €8,000 per square metre is a sensible starting point for an apartment, while a typical new-build apartment is closer to €10,000 per square metre and family houses inside the city usually require a seven-figure budget.

The latest Immowelt estimate puts Munich apartments at €8,069/m². ImmoScout24 is slightly lower at €7,829/m². For a buyer trying to understand the market quickly, that gives us a useful citywide range of roughly €7,800–€8,100/m².

Actual sales show how much the property itself changes the answer. Munich's Gutachterausschuss, which receives purchase-contract data rather than relying on advertised properties, puts newly built apartments at about €9,800/m² in average residential locations and €10,550/m² in good ones.

Older apartments can sell for much less. Prime central homes can sell for much more.

So when someone says that a Munich apartment costs around €8,000/m² today, we would treat that as a useful reference point rather than a price tag that applies across the city.

Why do Munich property websites give such different prices?

Munich property websites disagree because they are often measuring different homes in different ways, so we should be careful with any single "average Munich price."

Immowelt currently estimates apartments at €8,069/m², while ImmoScout24 puts them at €7,829/m². That roughly €240/m² gap is already worth about €17,000 on a 70 m² apartment.

The difference becomes much larger when we compare those portal averages with official transaction data. The Gutachterausschuss records actual notarised sales and separates properties by age and location. New apartments in average locations have lately been selling around €9,800/m², far above either citywide portal figure.

There is nothing strange about that once we look at what sits inside the average. A 1970s apartment in an outer neighbourhood, a renovated Altbau near the centre and a brand-new apartment are all "Munich apartments", but buyers would never value them as the same product.

We use portal numbers to understand the broad market and neighbourhood differences, while giving more weight to the Gutachterausschuss when actual sale prices are available.

Are Munich home prices going up again?

Munich apartment prices are rising again, but currently at a fairly slow pace rather than anything close to the old boom.

Immowelt's latest reading shows apartment prices about 1.6% higher than a year earlier. Its annual series also shows the recovery clearly: roughly €7,640/m² in 2023, €7,838 in 2024, €7,958 in 2025 and just above €8,000 today.

That works out to a rise of roughly 5.6% from the 2023 level.

Actual transactions look less uniform. Munich's latest half-year report found resale-apartment movements ranging from roughly -1% to +5% depending on building age. New apartments in average locations fell about 2%, while good-location new builds rose around 4%.

The market has found its feet again, but stronger properties are moving up faster than weaker ones. Buyers have come back without recreating the price surge of the cheap-mortgage years.

Are Munich homes still cheaper than at the peak?

Munich homes are still clearly below their previous peak, even though prices have been creeping upward lately.

Immowelt's historical series puts apartments at €9,221/m² in 2021 compared with a little over €8,000/m² today. That leaves the current level around 12% lower.

ImmoScout24 reaches a very similar conclusion when it compares today's market with the 2022 peak.

That correction was large in euro terms. A property worth €800,000 at the top would be roughly €700,000 after a 12% decline, all else being equal.

Inflation widens the gap further. Household prices and wages have moved since the previous property peak, so Munich housing sits even further below its old high in real purchasing-power terms than the nominal numbers suggest.

Still, a 10–12% correction from one of Europe's most expensive housing markets does not suddenly create cheap housing. Munich came down from an unusually high base.

How much does an ordinary older apartment cost in Munich?

A normal Munich resale apartment can still be found around €6,500–€8,000/m², with building age, condition and location doing a huge amount of the work.

Official transaction data show why the broad €8,000 city average can mislead buyers. Apartments from the 1960s have recently traded around the mid-€6,000s per square metre, while 1970s stock sits in a similar range. Apartments from the 2000s are closer to the low-€8,000s, and homes built from 2010 onward can approach €9,000/m².

For a 70 m² home, moving from €6,500 to €9,000 per square metre changes the purchase price from €455,000 to €630,000.

Condition can easily overwhelm the age effect. A renovated Altbau in Haidhausen or Schwabing can sell far above the average for its construction period, while an apartment facing major facade, heating, roof or owners' association costs can sit below it.

In practice, building age and condition create some of the biggest price gaps in Munich today. Giving up a brand-new building can save much more money than moving one or two streets within the same neighbourhood.

How much extra do you pay for a new apartment in Munich?

A new Munich apartment can easily cost €120,000–€175,000 more than a typical citywide apartment of the same size.

The latest actual sales put new apartments around €9,800/m² in average locations and roughly €10,550/m² in good locations.

Take a 70 m² apartment. At roughly €8,000/m², it costs about €560,000. At the official average-location new-build price, it rises to €686,000. In a good location, the same floor area reaches about €738,500.

Buyers are paying a very substantial premium for modern energy standards, new plumbing and electrics, contemporary layouts, warranties and fewer immediate renovation problems.

Whether that premium is worth paying is another question. But the size of it is hard to dismiss: choosing resale instead of new construction can free up enough money to cover years of renovation and maintenance.

How much does the neighbourhood change Munich apartment prices?

The Munich neighbourhood can change the price of the same-sized apartment by several hundred thousand euros.

ImmoScout24 currently puts apartments around €6,700/m² in Aubing-Lochhausen-Langwied and roughly €7,000 in Allach-Untermenzing. Laim is around €7,700.

Move toward the expensive inner districts and prices jump quickly. Au-Haidhausen is around €10,000/m², Ludwigsvorstadt-Isarvorstadt roughly €10,800 and Altstadt-Lehel more than €12,000.

For a 70 m² apartment, the difference between Aubing and Altstadt-Lehel is close to €385,000.

That price gap is large enough to change the entire buying decision. A household can often gain an extra bedroom, newer construction or a much smaller mortgage by accepting an outer district with good transport rather than insisting on the centre.

What can €500,000, €700,000 or €1 million buy in Munich?

A €500,000 budget still buys an apartment in Munich, but these days the amount of space you get depends enormously on where and what you buy.

Around €7,000/m², €500,000 corresponds to roughly 71 m² before purchase costs. Around €10,000/m², it gets you 50 m². At €12,000/m², you are down to about 42 m².

A €700,000 budget opens up much more of the city. At an outer-district price around €7,000/m², it theoretically buys 100 m². Around €10,000/m², it buys 70 m². In Munich's most expensive central areas, it may still mean an apartment of only 55–60 m².

With €1 million, a buyer can shop seriously for large apartments across most of Munich, although prime new construction can still absorb the full budget surprisingly quickly. A 90 m² new apartment at €10,500/m² is already close to €945,000 before taxes and other buying costs.

That is a better way to understand Munich prices than saying only that the city averages around €8,000/m². The same €700,000 can mean a compact central apartment or a genuinely family-sized home farther out.

How much does a house in Munich cost today?

A house inside Munich is now basically a seven-figure purchase, including many fairly ordinary family homes.

The latest Gutachterausschuss transactions put resale middle-row houses around €895,000 and resale end-row houses around €955,000. Resale semi-detached homes are closer to €1.13 million.

New houses cost considerably more. Recent averages are roughly €1.18–€1.20 million for new row houses and about €1.46 million for a new semi-detached house.

Those figures describe the homes that actually sold, so size and plot differences matter. Even so, they show where the market currently sits. A household hoping for a traditional family house within the Munich city boundary should usually think in terms of roughly €1 million or more before buying costs.

The gap with apartments also explains why families often move toward the Landkreis or accept a larger apartment instead. Once a Munich house approaches €1.3–€1.5 million, the alternatives outside the city become much harder to ignore.

How much more expensive is Munich than Berlin, Hamburg or Frankfurt?

Munich is still in a different price league from Germany's other big cities, with apartments currently costing roughly 50% more than Frankfurt and close to 90% more than Berlin on comparable ImmoScout24 data.

ImmoScout24 estimates Munich apartments at €7,829/m². Frankfurt comes in around €5,124, Hamburg around €4,855, Düsseldorf around €4,378, Cologne around €4,256 and Berlin around €4,189.

On a 70 m² apartment, the gap between Munich and Frankfurt is roughly €189,000. Compared with Berlin, it is about €255,000.

Those are large enough differences that Munich could suffer another meaningful price correction and still remain Germany's most expensive major housing market.

Munich prices have already fallen substantially from their old peak. The comparison with the rest of Germany shows how far the city still is from looking cheap.

How much cash do you really need to buy a Munich apartment?

Buying a Munich apartment usually requires far more cash than the advertised price suggests, especially now that mortgage rates are close to 4%.

Bavaria charges 3.5% property-transfer tax. Notary and land-register expenses commonly add roughly another 1.5–2%. Where the buyer pays an estate-agent share of around 3.57%, total ancillary costs can approach 9% of the purchase price.

Take a €560,000 apartment. The transfer tax is €19,600. Another 1.5–2% for the notary and registration means roughly €8,400–€11,200. A 3.57% buyer commission would add almost €20,000.

The total purchase cost can therefore move toward €610,000 before the buyer has changed a kitchen, renovated a bathroom or bought furniture.

Financing has also become slightly tougher lately. Dr. Klein's current representative ten-year rate is about 3.9%, which is around its highest level of the year.

With a 20% deposit, a €560,000 apartment leaves roughly €448,000 to finance. At 3.9% interest plus an initial 2% repayment rate, the opening mortgage payment is about €2,200 per month.

Is buying a Munich apartment much more expensive than renting one?

Buying in Munich is still expensive relative to renting, even with rents rising quickly.

Immowelt currently estimates asking rents for apartments at €21.56/m², about 3% higher than a year ago. Put that beside current purchase prices and a typical Munich apartment gives a gross rental yield of only around 3%.

A buyer paying roughly €8,000/m² is effectively paying more than 30 years of today's gross asking rent upfront.

For new construction, the maths becomes even heavier. A home costing around €10,000/m² against a rent near €22/m² gives a gross yield of roughly 2.6%.

Owners do build equity, rents may rise and a property can appreciate, so a gross rental multiple cannot decide whether someone should buy. It does tell us that Munich buyers are paying a lot for ownership itself.

The gap is even wider for people who already have older leases. Munich's official Mietspiegel puts the average net cold rent at €15.38/m², well below what someone looking for a new apartment sees on the portals today. For a long-term tenant with a good contract, buying can therefore be especially hard to justify on monthly cost alone.

Are buyers coming back to Munich property now?

Buyers are coming back to Munich property, but the latest transactions still look more like a recovery in activity than another buying frenzy.

Munich's newest half-year market report counted about 3% more purchase contracts than a year earlier. Total money changing hands rose 7% to around €5.4 billion.

Apartment and part-ownership transactions reached roughly 4,950, up from about 4,750. At the same time, resale prices moved only modestly across most age groups.

More properties are selling, yet buyers are not bidding the whole market sharply higher.

Only around 650 of those apartment transactions involved new properties. Roughly 87% therefore came from the resale market.

That is one reason today's Munich market feels different from the boom. Transactions have recovered enough for sellers to find buyers again, while price discipline still matters.

Could Munich homes become much cheaper from here?

A large Munich housing-price collapse looks unlikely for now, although expensive or compromised properties can still fall further.

The supply side remains tight. Munich completed only 4,348 homes in 2025. The city approved 8,146, which gives the future pipeline some depth, but approvals do not immediately put apartments on the market.

Recent new-build sales also remain thin. As pointed out above, only about 650 new units appeared among roughly 4,950 apartment and part-ownership transactions in the city's latest half-year dataset.

At the same time, buyers are having to digest mortgage rates around 4%. That limits how quickly prices can rise because monthly affordability is dramatically worse than it was when borrowing cost around 1%.

There is another warning underneath the headline apartment numbers. Munich's newly published land reference values fell sharply in a number of areas compared with the previous peak. Some individual zones have dropped by 20–30%. Developers therefore remain under pressure even while completed apartments hold their value better.

Munich is likely to stay unusually selective: good apartments in useful locations have strong support, while overpriced new builds, renovation-heavy homes and properties with awkward locations have much less room for error.

A citywide crash would probably need a much bigger demand shock, forced selling or a major increase in housing supply. We do not see that combination currently.

So how expensive are homes in Munich now?

Munich homes are still exceptionally expensive today: roughly €8,000/m² buys a typical apartment, good new construction is around €10,000–€10,500/m², and buying a family house inside the city usually means spending around €1 million or more.

The useful part is understanding what sits behind those averages.

An ordinary older apartment may be available around €6,500–€7,500/m². A central apartment can easily clear €10,000/m². A 70 m² home can therefore cost less than €500,000 in one part of Munich and more than €800,000 in another.

Prices have recovered somewhat after the sharp 2022–23 correction, but they remain around 10–12% below their former peak on major market datasets. The recovery has been slow enough that we would not call Munich a booming market today.

Financing is making today's prices feel heavier than the price charts alone suggest. With mortgage rates close to 4%, a roughly €560,000 apartment financed with 20% equity already produces an opening mortgage payment around €2,200 a month, before building charges, maintenance and the cash needed for taxes and fees.

Meanwhile, Munich remains dramatically more expensive than every other major German city. Frankfurt apartments are roughly one-third cheaper on comparable portal data, while Berlin is close to half the price.

So the direct answer is that Munich has become cheaper than it was at the top, but buying a home there is still one of the most expensive housing decisions in Germany. The correction removed some of the excess from the boom years. It did not remove Munich's scarcity premium.

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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