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
Munich has some of the highest rents in Germany, and the gap between what existing tenants pay and what new renters face can be surprisingly wide.
In this article, we break down the latest rent figures, neighborhood trends, and landlord costs so you know exactly what to expect in Munich in 2026.
We update this blog post regularly to keep the numbers fresh and reliable.
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.
Insights
- Munich's vacancy rate sits between 0.5% and 1%, which is among the lowest in all of Europe and explains why landlords rarely struggle to find tenants.
- New tenants in Munich pay around 50% more per square meter than those with existing contracts, because the official Mietspiegel averages about €15/m² while new leases start closer to €23/m².
- A well-priced rental in Munich typically stays listed for only 20 to 30 days, which is near the natural minimum according to market analysts.
- Furnished apartments in Munich command a significant premium, making them a smart option for landlords targeting expats and corporate relocations.
- Altstadt-Lehel and Maxvorstadt remain Munich's priciest rental neighborhoods in 2026, driven by central location and proximity to universities.
- Munich rents grew by 3% to 5% year-over-year in early 2026, outpacing inflation and most other German cities.
- Young professionals in Munich cluster in Schwabing and Ludwigsvorstadt-Isarvorstadt for the combination of nightlife, bike-friendly streets, and quick commutes.
- Families looking for more space in Munich tend to favor Neuhausen-Nymphenburg and Sendling-Westpark, where parks and schools are easier to access.
- Munich's property tax uses a Hebesatz of 824%, which landlords multiply by their tax base to calculate the annual bill.
- Landlords in Munich typically budget €12 to €24 per square meter per year for maintenance, depending on whether the building is newer or older.
What are typical rents in Munich as of 2026?
What's the average monthly rent for a studio in Munich as of 2026?
As of early 2026, the average monthly rent for a studio apartment in Munich is around €850 (approximately $920 USD or €850 EUR), based on a typical size of 30 to 35 square meters.
Most studios in Munich rent somewhere between €650 and €1,100 per month ($700 to $1,190 USD), depending on location, condition, and whether the unit is furnished.
The main factors that cause studio rents in Munich to vary include neighborhood (central areas like Maxvorstadt cost more), building age, floor level with or without an elevator, and whether a balcony or modern kitchen is included.
What's the average monthly rent for a 1-bedroom in Munich as of 2026?
As of early 2026, the average monthly rent for a 1-bedroom apartment in Munich is around €1,125 (approximately $1,215 USD or €1,125 EUR), assuming a typical size of 45 to 55 square meters.
Most 1-bedroom apartments in Munich rent between €850 and €1,500 per month ($920 to $1,620 USD), with the range depending on exact location and apartment features.
In Munich, the cheapest 1-bedroom rents tend to be in outer districts like Trudering-Riem or Feldmoching-Hasenbergl, while the highest are found in Altstadt-Lehel, Maxvorstadt, and Schwabing-West.
What's the average monthly rent for a 2-bedroom in Munich as of 2026?
As of early 2026, the average monthly rent for a 2-bedroom apartment in Munich is around €1,600 (approximately $1,730 USD or €1,600 EUR), based on a typical size of 70 to 80 square meters.
Most 2-bedroom apartments in Munich rent between €1,200 and €2,200 per month ($1,300 to $2,375 USD), depending on neighborhood and apartment quality.
In Munich, the most affordable 2-bedroom rents are typically found in Milbertshofen-Am Hart or Ramersdorf-Perlach, while the most expensive are in Bogenhausen, Altstadt-Lehel, and Schwabing.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Munich.
What's the average rent per square meter in Munich as of 2026?
As of early 2026, the average rent per square meter in Munich for new leases is around €23 (approximately $25 USD or €23 EUR), while existing contracts average closer to €15 per square meter according to the official Mietspiegel.
Across Munich neighborhoods, rent per square meter ranges from about €17 in outer districts to over €30 in premium central areas like Altstadt-Lehel ($18 to $32 USD).
Compared to other major German cities, Munich's rent per square meter is significantly higher than Berlin, Hamburg, or Frankfurt, making it the most expensive rental market in the country.
In Munich, property characteristics that push rent per square meter above average include being furnished, having a balcony or terrace, modern energy-efficient heating, and being located in a building with an elevator.
How much have rents changed year-over-year in Munich in 2026?
As of early 2026, rents in Munich for new leases have increased by approximately 3% to 5% compared to January 2025.
The main factors driving rent increases in Munich this year include persistently low vacancy rates (under 1%), strong demand from young professionals and expats, and limited new housing construction.
This year's rent increase in Munich is broadly in line with 2025's trend, where the official Mietspiegel showed a 5.5% rise over two years, confirming that upward pressure on Munich rents remains steady.
What's the outlook for rent growth in Munich in 2026?
As of early 2026, Munich rents are projected to grow by approximately 2% to 4% over the coming year for new leases.
The key factors likely to influence Munich rent growth include continued low vacancy, strong employment in tech and automotive sectors, and ongoing population growth from both domestic and international migration.
In Munich, neighborhoods expected to see the strongest rent growth in 2026 include Au-Haidhausen, Sendling, and areas near major S-Bahn hubs where demand outpaces supply.
The main risks that could cause Munich rent growth to differ from projections include a potential economic slowdown, rising interest rates affecting landlord costs, or unexpected increases in housing supply from new construction projects.
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.
Which neighborhoods rent best in Munich as of 2026?
Which neighborhoods have the highest rents in Munich as of 2026?
As of early 2026, the three neighborhoods with the highest average rents in Munich are Altstadt-Lehel, Maxvorstadt, and Schwabing-West, where rents typically exceed €25 per square meter (approximately $27 USD or €25 EUR).
These Munich neighborhoods command premium rents because of their central locations, proximity to universities and cultural institutions, excellent public transport, and high-quality historic building stock.
The tenant profile in these high-rent Munich neighborhoods typically includes well-paid professionals, executives, and international expats who prioritize convenience and lifestyle over space.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Munich.
Where do young professionals prefer to rent in Munich right now?
The top three neighborhoods where young professionals prefer to rent in Munich are Maxvorstadt, Schwabing-West, and Ludwigsvorstadt-Isarvorstadt (including the popular Glockenbach quarter).
Young professionals in these Munich neighborhoods typically pay between €1,000 and €1,500 per month ($1,080 to $1,620 USD) for a 1-bedroom apartment, depending on exact location and amenities.
These neighborhoods attract young professionals in Munich because of their vibrant nightlife, bike-friendly streets, proximity to coworking spaces, and easy access to the English Garden and Isar River.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Munich.
Where do families prefer to rent in Munich right now?
The top three neighborhoods where families prefer to rent in Munich are Neuhausen-Nymphenburg, Bogenhausen, and Sendling-Westpark.
Families renting 2 to 3 bedroom apartments in these Munich neighborhoods typically pay between €1,600 and €2,500 per month ($1,730 to $2,700 USD), depending on apartment size and specific location.
These neighborhoods attract families in Munich because they offer larger apartments, green spaces like Nymphenburg Palace Park and Westpark, quieter streets, and good access to schools and daycare.
Top-rated schools near these family-friendly Munich neighborhoods include Grundschule an der Blutenburg in Neuhausen, Wilhelm-Hausenstein-Gymnasium in Bogenhausen, and several well-regarded Kitas throughout Sendling-Westpark.
Which areas near transit or universities rent faster in Munich in 2026?
As of early 2026, the three areas near transit hubs or universities that rent fastest in Munich are Maxvorstadt (near LMU and TUM), Au-Haidhausen (around Ostbahnhof), and Laim (along the S-Bahn corridor).
In these high-demand Munich areas, rental properties typically stay listed for just 15 to 25 days, which is faster than the citywide average of 20 to 30 days.
Properties within walking distance of transit or universities in Munich command a rent premium of roughly €2 to €4 per square meter (approximately $2 to $4 USD), compared to similar properties further from these amenities.
Which neighborhoods are most popular with expats in Munich right now?
The top three neighborhoods most popular with expats in Munich are Bogenhausen, Schwabing, and Au-Haidhausen.
Expats renting in these Munich neighborhoods typically pay between €1,300 and €2,200 per month ($1,400 to $2,375 USD) for a furnished 1 or 2 bedroom apartment.
These neighborhoods attract expats in Munich because they offer international schools nearby, English-speaking services, furnished rental options, and easy access to the airport via S-Bahn.
The expat communities most represented in these Munich neighborhoods include Americans, British, Indians, and professionals from other EU countries working in tech, consulting, and automotive industries.
And if you are also an expat, you may want to read our exhaustive guide for expats in Munich.
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Who rents, and what do tenants want in Munich right now?
What tenant profiles dominate rentals in Munich?
The top three tenant profiles that dominate the rental market in Munich are young professionals (working in tech, consulting, and automotive), students (at LMU, TUM, and related institutions), and international expats (often on corporate relocations).
In Munich, young professionals make up roughly 35% to 40% of rental demand, students account for about 25% to 30%, and expats represent around 15% to 20%, with the remainder being families and other groups.
Young professionals in Munich typically seek modern 1 to 2 bedroom apartments near transit, students look for studios or shared flats close to universities, and expats often prefer furnished apartments in central or well-connected neighborhoods.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Munich.
Do tenants prefer furnished or unfurnished in Munich?
In Munich, roughly 70% to 75% of long-term tenants prefer unfurnished apartments, while 25% to 30% actively seek furnished rentals, which is higher than most German cities.
Furnished apartments in Munich typically command a rent premium of €300 to €600 per month ($325 to $650 USD) compared to equivalent unfurnished units, reflecting the convenience factor and shorter commitment periods.
The tenant profiles that prefer furnished rentals in Munich include expats arriving for corporate assignments, students needing quick housing, and professionals between permanent apartments or on temporary work contracts.
Which amenities increase rent the most in Munich?
The top five amenities that increase rent the most in Munich are an elevator (especially in older buildings), a balcony or terrace, modern energy-efficient heating, an included fitted kitchen, and a dedicated parking spot.
In Munich, an elevator can add €50 to €100 per month ($55 to $110 USD), a balcony adds €75 to €150 ($80 to $160 USD), modern heating saves tenants money so justifies €50 to €100 more ($55 to $110 USD), a fitted kitchen adds €50 to €100 ($55 to $110 USD), and parking can add €100 to €200 ($110 to $215 USD) depending on the neighborhood.
In our property pack covering the real estate market in Munich, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Munich?
The top five renovations that get the best ROI for rental properties in Munich are a bathroom refresh, durable flooring upgrades, energy-efficient window replacement, a modern fitted kitchen, and a professional furnished package for units targeting expats.
In Munich, a bathroom refresh typically costs €3,000 to €8,000 ($3,240 to $8,640 USD) and can increase rent by €50 to €100 per month, new flooring costs €2,000 to €5,000 ($2,160 to $5,400 USD) for a €30 to €60 monthly gain, energy-efficient windows cost €5,000 to €10,000 ($5,400 to $10,800 USD) for a €40 to €80 gain, a fitted kitchen costs €4,000 to €10,000 ($4,320 to $10,800 USD) for a €50 to €100 gain, and furnishing costs €5,000 to €15,000 ($5,400 to $16,200 USD) for a €200 to €400 monthly premium.
Renovations that tend to have poor ROI in Munich include high-end luxury finishes that exceed what the local tenant pool expects, overly custom designs that limit appeal, and structural changes that take months and cause extended vacancy.
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.
How strong is rental demand in Munich as of 2026?
What's the vacancy rate for rentals in Munich as of 2026?
As of early 2026, the vacancy rate for rental properties in Munich is estimated at 0.5% to 1%, which is among the lowest of any major European city.
Across Munich neighborhoods, vacancy rates range from as low as 0.3% in high-demand central areas like Maxvorstadt to around 1.5% in some outer districts like Aubing-Lochhausen-Langwied.
The current vacancy rate in Munich is well below the historical average for German cities (typically 2% to 3%), reflecting decades of population growth outpacing new housing construction.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Munich.
How many days do rentals stay listed in Munich as of 2026?
As of early 2026, the average number of days rentals stay listed in Munich is approximately 20 to 30 days, with well-priced units often finding tenants even faster.
Across Munich, days on market ranges from as few as 10 to 15 days for studios in Maxvorstadt or Schwabing to 30 to 40 days for larger family apartments in outer districts like Trudering-Riem.
The current days-on-market figure in Munich is similar to or slightly faster than one year ago, as demand continues to outstrip supply and vacancy remains at historic lows.
Which months have peak tenant demand in Munich?
The peak months for tenant demand in Munich are March through May (spring moving season) and August through October (university start and corporate relocation season).
The specific factors driving seasonal demand patterns in Munich include university semester starts at LMU and TUM, corporate hiring cycles in the tech and automotive sectors, and the general preference for moving during warmer weather.
The months with the lowest tenant demand in Munich are typically December through February, when holiday schedules and cold weather slow down the rental market.
Buying real estate in Munich can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What will my monthly costs be in Munich as of 2026?
What property taxes should landlords expect in Munich as of 2026?
As of early 2026, landlords in Munich should expect to pay annual property taxes (Grundsteuer) that vary widely based on the property's assessed tax base, with a typical range of €300 to €1,500 per year ($325 to $1,620 USD or €300 to €1,500 EUR) for standard residential apartments.
Across Munich, annual property taxes range from around €200 for smaller units with low assessed values to over €2,000 ($215 to $2,160 USD) for larger or more valuable properties in premium locations.
Property taxes in Munich are calculated by multiplying your property's tax base (Messbetrag, set by the tax office) by Munich's municipal multiplier (Hebesatz), which is currently 824%.
Please note that, in our property pack covering the real estate market in Munich, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What maintenance budget per year is realistic in Munich right now?
A realistic annual maintenance budget for a typical rental property in Munich is €900 to €1,800 ($970 to $1,945 USD or €900 to €1,800 EUR) for a 75 square meter apartment, based on the standard guideline of €12 to €24 per square meter per year.
Across Munich, annual maintenance costs range from around €12 per square meter for newer, well-maintained buildings to €24 per square meter ($13 to $26 USD) for older Altbau properties that require more frequent repairs.
Landlords in Munich typically set aside 8% to 12% of annual rental income for maintenance reserves, which aligns with conservative German financial planning guidelines.
What utilities do landlords often pay in Munich right now?
In Munich, the utilities landlords most commonly contract (and then pass through to tenants via Nebenkosten) include water, heating, waste collection, building cleaning, and property tax.
The typical monthly cost for these utilities in Munich is €2.50 to €4.00 per square meter ($2.70 to $4.30 USD), so a 75 square meter apartment would have Nebenkosten of roughly €190 to €300 per month on top of the cold rent.
The common practice in Munich is for landlords to contract most operating costs centrally and then bill tenants monthly as a prepayment (Vorauszahlung), with an annual reconciliation based on actual usage as defined in the Betriebskostenverordnung.
How is rental income taxed in Munich as of 2026?
As of early 2026, rental income in Munich (and all of Germany) is taxed as "Einkünfte aus Vermietung und Verpachtung" under Section 21 of the German Income Tax Act, meaning you pay your personal income tax rate (14% to 45%) on net rental profit.
The main deductions landlords can claim against rental income in Munich include mortgage interest, depreciation (typically 2% of the building value per year), repairs and maintenance, property management fees, and operating costs not passed through to tenants.
A common tax mistake landlords in Munich make is failing to properly distinguish between immediately deductible repairs (Erhaltungsaufwand) and improvements that must be depreciated over time (Herstellungsaufwand), which can lead to unexpected tax bills or missed deductions.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Munich.
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.
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 |
|---|---|---|
| City of Munich Mietspiegel 2025 | It's the official rent index published by Munich's city administration. | We used it for the average existing-contract rent per square meter in Munich. We also used it as the anchor for regulated rent references throughout the article. |
| City of Munich Wohnungsmarktbarometer 2024 | It's a detailed city-published housing market report built from local market evidence. | We used it for re-letting rents by apartment size and by district in Munich. We treated it as the most Munich-specific source for new lease prices. |
| City of Munich Grundsteuerreform page | It's the official municipal page explaining how Munich calculates property tax. | We used it to state Munich's Hebesatz of 824%. We also used it to explain how landlords calculate their annual property tax bill. |
| Betriebskostenverordnung (BetrKV) | It's Germany's official legal database with the binding text of the operating costs regulation. | We used it to define what counts as operating costs that can be passed through to tenants. We used it as the legal foundation for the utilities section. |
| Section 21 EStG (German Income Tax Law) | It's the official text of the German income tax law section on rental income. | We used it to explain that rental income is taxed as Einkünfte aus Vermietung und Verpachtung. We used it to keep the tax discussion legally grounded. |
| Bundesfinanzministerium EStH | It's official federal guidance used in real-world German tax administration. | We used it to support practical points about deductible expenses for landlords. We used it to keep the tax section aligned with actual practice. |
| ImmobilienScout24 Munich Rent Data | It's Germany's largest listing portal with a large, transparent dataset of asking rents. | We used it as a private-sector cross-check against city data for market asking rents. We used it to verify the direction of short-term rent changes in Munich. |
| immowelt Munich Mietspiegel | It's a major German property portal that publishes methodology-backed rent indicators. | We used it as a second private-sector cross-check so we weren't relying on just one portal. We used it to sanity-check our per-square-meter rent estimates. |
| Empirica Institute CBRE Vacancy Index | Empirica is a respected German housing market institute behind one of the best-known vacancy indexes. | We used it to show how exceptionally tight Munich's rental market is. We used it to explain why fast renting is a structural feature in Munich. |
| Empirica Regio Vacancy Update | It's a current release from the Empirica/CBRE vacancy index ecosystem with clear definitions. | We used it to benchmark Munich against the broader German market. We used it to support the narrative that vacancy is historically low. |
| Münchner Wohnen Press Release | It's Munich's large municipal housing company reporting its own measured vacancy. | We used it as a concrete Munich-local number showing vacancy well under 1%. We used it to triangulate our overall Munich vacancy estimate. |
| CBRE Germany Time-on-Market Index | CBRE is a global real estate consultancy with a published methodology for time-on-market data. | We used it to quantify how long rental listings stay on the market. We used it to set realistic days-listed expectations for Munich's tight market. |
| Deutscher Mieterbund Betriebskostenspiegel | It's the national tenants' association aggregating real operating cost bills into a standard benchmark. | We used it to estimate typical monthly Nebenkosten per square meter in Munich. We used it as a neutral benchmark for utility cost estimates. |
| Sparkasse Maintenance Reserve Guidance | It's a mainstream financial institution network publishing conservative budgeting rules. | We used it to provide a simple maintenance reserve guideline per square meter. We used it as a practical landlord budgeting reference. |
| Wohneigentum NRW Maintenance Guide | It's a public-interest housing organization that cites common German reference formulas. | We used it to triangulate maintenance reserve rules of thumb. We used it to present ranges for newer versus older buildings without false precision. |
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