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's property market in early 2026 feels selective: well-located, renovated homes still sell quickly, while compromised properties sit longer and get discounted.
Rents remain strong across most neighborhoods because Munich simply does not have enough housing for everyone who wants to live there.
We constantly update this blog post to reflect the latest market data and neighborhood trends.
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.
What's the Current Real Estate Market Situation by Area in Munich?
Which areas in Munich have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas in Munich are Altstadt around Sattlerstrasse, the Lehel neighborhood near U-Bahnhof Lehel, and Schwabing-West around Hohenzollernplatz and Elisabethplatz.
In these prime Munich neighborhoods, property prices typically range from 12,000 to over 18,000 euros per square meter, depending on the exact street and building condition.
Each of these high-priced Munich areas commands top prices for distinct reasons:
- Altstadt-Sattlerstrasse: historic core scarcity, walkability to everything, and almost zero new supply.
- Lehel near U-Bahnhof Lehel: quiet prestige next to Englischer Garten with old-money appeal.
- Schwabing-West around Hohenzollernplatz: strong lifestyle amenities and excellent rental demand from professionals.
- Bogenhausen near Prinzregentenplatz: large prestigious units with Isar river and green space proximity.
Which areas in Munich have the most affordable property prices in 2026?
As of early 2026, the most affordable areas in Munich include Hasenbergl around Olschewskibogen, Aubing near Am Langwieder Bach, Ramersdorf around Am Jagdweg, and Perlach near Stemplingeranger.
In these more affordable Munich neighborhoods, property prices typically range from 7,200 to 8,000 euros per square meter for houses, which is roughly half of what you would pay in prime central locations.
The main trade-off in these lower-priced Munich areas is longer commute times to the city center and fewer walkable amenities, though all have decent public transit connections and are popular with families who prioritize space over nightlife.
You can also read our latest analysis regarding housing prices in Munich.
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.
Which Areas in Munich Offer the Best Rental Yields?
Which neighborhoods in Munich have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods with the highest gross rental yields in Munich are Hasenbergl around Olschewskibogen at roughly 3.1%, Ramersdorf near Am Jagdweg at about 3.1%, Aubing around Am Langwieder Bach at approximately 3.0%, and Moosach near Claudiusplatz at around 3.0%.
Across Munich as a whole, typical gross rental yields range from 2% to 3.5%, with prime central areas often compressing below 2.5% due to their high purchase prices relative to rents.
These higher-yielding Munich neighborhoods deliver better returns than central areas for specific reasons:
- Hasenbergl-Olschewskibogen: lower entry prices around 7,400 euros per square meter with rents near 19.40 euros.
- Ramersdorf-Am Jagdweg: family-friendly area with solid rents of 19.60 euros and prices around 7,600 euros.
- Aubing-Am Langwieder Bach: benefits from Freiham development proximity, prices near 7,300 euros.
- Moosach-Claudiusplatz: excellent U-Bahn and S-Bahn access with rents around 20 euros per square meter.
Finally, please note that we cover the rental yields in Munich here.
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Which Areas in Munich Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Munich perform best on Airbnb in 2026?
As of early 2026, the neighborhoods that perform best on Airbnb in Munich are Altstadt-Lehel near the historic core, Ludwigsvorstadt-Isarvorstadt around Glockenbach, Maxvorstadt near the museum quarter, and Haidhausen around Ostbahnhof.
Top-performing Airbnb properties in these Munich neighborhoods can generate roughly 8,000 to 11,000 euros in monthly revenue, though this varies significantly by exact location, property size, and seasonal demand.
These Munich neighborhoods outperform others for short-term rentals for distinct reasons:
- Altstadt-Lehel: walking distance to Marienplatz, museums, and tourist attractions.
- Ludwigsvorstadt-Isarvorstadt: Hauptbahnhof access plus Glockenbach nightlife draws younger visitors.
- Maxvorstadt: university area with museums and walkable cultural venues.
- Haidhausen: Ostbahnhof connectivity plus excellent restaurants and bars.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Munich.
Which tourist areas in Munich are becoming oversaturated with short-term rentals?
The three tourist areas in Munich that are becoming most oversaturated with short-term rentals are Altstadt-Lehel in the historic center, Isarvorstadt around the Glockenbach quarter, and Maxvorstadt near the museum and university district.
In these oversaturated Munich areas, InsideAirbnb data shows dense clustering of listings within small geographic zones, with Altstadt-Lehel having the highest concentration of active rentals relative to residential housing stock.
The main indicator of oversaturation in these Munich neighborhoods is not just listing count but declining occupancy rates and increased price competition among hosts, combined with stricter enforcement of Munich's Zweckentfremdungssatzung housing misuse rules.
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 Areas in Munich Are Best for Long-Term Rentals?
Which neighborhoods in Munich have the strongest demand for long-term tenants?
The neighborhoods in Munich with the strongest demand for long-term tenants are Maxvorstadt near the universities, Schwabing-West around Elisabethplatz, Haidhausen near Max-Weber-Platz, and Moosach around Claudiusplatz.
In these high-demand Munich neighborhoods, well-priced apartments typically rent within one to two weeks of listing, and vacancy rates remain very low because demand consistently exceeds supply.
Different tenant profiles drive demand in each of these Munich neighborhoods:
- Maxvorstadt: students and young academics from LMU and TUM universities.
- Schwabing-West: white-collar professionals seeking lifestyle amenities and transit access.
- Haidhausen near Max-Weber-Platz: commuters who value Ostbahnhof connectivity.
- Moosach: families and mid-career workers attracted by relative value and U-Bahn links.
The key amenity that makes these Munich neighborhoods attractive to long-term tenants is excellent public transit access, whether that means direct U-Bahn lines, S-Bahn connections, or walkability to major employment centers.
Finally, please note that we provide a very granular rental analysis in our property pack about Munich.
What are the average long-term monthly rents by neighborhood in Munich in 2026?
As of early 2026, average long-term monthly rents in Munich range from about 18 euros per square meter in outer areas like Aubing and Perlach to over 20 euros per square meter in central neighborhoods like Haidhausen and Schwabing.
In the most affordable Munich neighborhoods such as Aubing around Am Langwieder Bach and Perlach near Stemplingeranger, entry-level apartments typically rent for 18 to 19 euros per square meter, meaning a 60-square-meter flat costs roughly 1,080 to 1,140 euros monthly.
In average-priced Munich neighborhoods like Moosach near Claudiusplatz or Trudering around Am Mitterfeld, mid-range apartments rent for about 20 euros per square meter, so a 70-square-meter apartment runs around 1,400 euros per month.
In the most expensive Munich neighborhoods such as Bogenhausen near Prinzregentenplatz or Haidhausen around Max-Weber-Platz, high-end apartments can command 22 to 25 euros per square meter or more, putting an 80-square-meter unit at 1,760 to 2,000 euros monthly.
You may want to check our latest analysis about the rents in Munich here.
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Which Are the Up-and-Coming Areas to Invest in Munich?
Which neighborhoods in Munich are gentrifying and attracting new investors in 2026?
As of early 2026, the Munich neighborhoods that are gentrifying and attracting new investors include the Werksviertel area near Ostbahnhof, Moosach around the U-Bahn and S-Bahn stations, and the Aubing-Langwied-Lochhausen corridor influenced by the Freiham development.
These gentrifying Munich neighborhoods have seen property values stabilize or modestly appreciate even during the broader market cooldown, with areas near completed infrastructure improvements showing the most resilience.
Which areas in Munich have major infrastructure projects planned that will boost prices?
The Munich areas with major infrastructure projects expected to boost property prices are West Munich around the Freiham development, areas along planned S-Bahn capacity upgrades, and neighborhoods near the Werksviertel-Ostbahnhof urban renewal zone.
The most significant project is Freiham, a massive new district being built in western Munich that will eventually house around 25,000 residents with schools, shops, parks, and improved transit links to the city center.
Historically in Munich, areas that gained new U-Bahn or S-Bahn stations have seen property values increase by 5% to 15% above the citywide average in the years following completion, though timing and exact returns vary by neighborhood.
You'll find our latest property market analysis about Munich here.
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.
Which Areas in Munich Should I Avoid as a Property Investor?
Which neighborhoods in Munich with lots of problems I should avoid and why?
Rather than entire districts to avoid, Munich investors should be cautious about specific micro-situations: properties on noisy ring-road edges, buildings with poor energy ratings, and tourist-area units purchased with Airbnb income assumptions.
Here are the main problems affecting certain Munich property types and locations:
- Ring-road adjacent properties: traffic noise reduces tenant appeal and resale liquidity.
- Pre-1980 buildings without energy retrofits: buyers discount unknown renovation costs heavily.
- Altstadt-Lehel STR-dependent units: Zweckentfremdungssatzung enforcement can kill Airbnb plans overnight.
- Isarvorstadt nightlife-adjacent flats: noise complaints and regulatory pressure on short-term rentals.
For these Munich problem situations to become viable, either significant renovations would need to be completed (for energy-inefficient buildings), or Munich would need to relax its housing misuse enforcement (unlikely given the ongoing housing shortage).
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Munich.
Which areas in Munich have stagnant or declining property prices as of 2026?
As of early 2026, price stagnation in Munich is driven more by property condition than by neighborhood, with unrenovated buildings showing energy efficiency issues and compromised units experiencing 5% to 15% discounts compared to the 2022 peak.
The Munich market cooled from its 2020-2022 sprint, with transaction volumes down and rate-sensitive buyers being more selective, though prime renovated properties in good locations have held their values better than the broader market.
Here are the main causes of price weakness in specific Munich property situations:
- Poor energy-rated buildings anywhere: buyers fear unknown retrofit costs and future regulations.
- Overpriced outer-ring listings: sellers who have not adjusted to post-2022 market reality.
- Noisy street-facing units: longer listing times and eventual price cuts to attract buyers.
- Large apartments with inefficient layouts: hard to rent and expensive to maintain.
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Which Areas in Munich Have the Best Long-Term Appreciation Potential?
Which areas in Munich have historically appreciated the most recently?
The Munich areas that have historically appreciated the most over the past decade are Lehel and inner Altstadt edges, Schwabing-West around Hohenzollernplatz, Haidhausen near Max-Weber-Platz, and Bogenhausen around Prinzregentenplatz.
Here are the approximate appreciation levels these top Munich areas achieved:
- Lehel: roughly doubled in value from 2014 to 2022 before the market cooled.
- Schwabing-West: strong sustained growth driven by professional tenant demand.
- Haidhausen-Max-Weber-Platz: benefited from Ostbahnhof connectivity improvements.
- Bogenhausen-Prinzregentenplatz: prestige address appreciation outpaced citywide averages.
The main driver of above-average appreciation in these Munich areas was structural supply scarcity combined with Munich's continued job growth and population inflows, which created persistent demand pressure in the most desirable locations.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Munich.
Which neighborhoods in Munich are expected to see price growth in coming years?
The Munich neighborhoods expected to see the strongest price growth in coming years are Lehel and inner Altstadt edges, Haidhausen around Ostbahnhof and Max-Weber-Platz, West Munich areas influenced by Freiham, and value-with-connectivity pockets like Moosach and Ramersdorf.
Here are the projected growth drivers for these high-potential Munich neighborhoods:
- Lehel: fixed supply in a prime location means any demand recovery lifts prices first.
- Haidhausen-Ostbahnhof: transit hub status attracts both renters and owner-occupiers.
- Aubing-Freiham corridor: new district amenities will gradually improve local appeal.
- Moosach and Ramersdorf: yield-plus-affordability combination attracts value-focused buyers.
The single most important catalyst for future price growth in these Munich neighborhoods is the expected stabilization of interest rates, which should bring rate-sensitive buyers back to the market and reduce the current discount on non-prime properties.
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 Do Locals and Expats Really Think About Different Areas in Munich?
Which areas in Munich do local residents consider the most desirable to live?
The areas in Munich that local residents consider most desirable to live are Lehel near Englischer Garten, Schwabing-West around Elisabethplatz and Hohenzollernplatz, Maxvorstadt near the university quarter, and prestige corridors of Bogenhausen around Herzogpark.
Here is what makes each of these Munich areas most desirable to locals:
- Lehel: quiet elegance, Englischer Garten access, and established neighborhood character.
- Schwabing-West: café culture, boutique shopping, and excellent schools nearby.
- Maxvorstadt: walkability to cultural venues and vibrant intellectual atmosphere.
- Bogenhausen-Herzogpark: spacious villas, greenery, and prestigious address status.
These locally-preferred Munich areas typically attract established professionals, families with children in good schools, and long-term Munich residents who prioritize neighborhood quality over nightlife proximity.
Local preferences in Munich largely align with what foreign investors target, though locals often prioritize school quality and daily-life convenience while foreign buyers may overweight tourist appeal and Airbnb potential.
Which neighborhoods in Munich have the best reputation among expat communities?
The Munich neighborhoods with the best reputation among expat communities are Haidhausen around Max-Weber-Platz, Maxvorstadt near the museums, Schwabing-West around Hohenzollernplatz, and parts of Isarvorstadt near Glockenbach.
Here is why expats prefer these Munich neighborhoods over others:
- Haidhausen: English-friendly cafés, international restaurants, and easy transit access.
- Maxvorstadt: walkable cultural scene and proximity to language schools.
- Schwabing-West: cosmopolitan atmosphere with good international grocery options.
- Isarvorstadt-Glockenbach: vibrant nightlife and younger international crowd.
The expat profile in these popular Munich neighborhoods typically includes corporate transferees, international students, tech workers, and professionals at multinational companies headquartered in the Munich area.
Which areas in Munich do locals say are overhyped by foreign buyers?
The Munich areas that locals commonly say are overhyped by foreign buyers are tourist-adjacent micro-areas in Altstadt-Lehel, nightlife pockets in Isarvorstadt around Glockenbach, and parts of Maxvorstadt near Marienplatz.
Here is why locals believe these Munich areas are overvalued:
- Altstadt-Lehel core: tourist crowds and noise make daily living less pleasant than visitors imagine.
- Isarvorstadt nightlife zones: weekend party noise conflicts with residential comfort expectations.
- Maxvorstadt near tourist routes: prices reflect visitor appeal more than livability quality.
Foreign buyers typically value the "weekend Munich" experience in these areas, including walkability to attractions, Instagram-worthy streets, and presumed Airbnb potential, while locals know that noise, parking difficulties, and regulatory restrictions often make these locations less attractive for actual living.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Munich.
Which areas in Munich are considered boring or undesirable by residents?
The Munich areas that residents commonly consider boring or undesirable are outer residential pockets without strong neighborhood centers, areas far from U-Bahn or S-Bahn stations, and some purely residential zones in the far north and west.
Here is why Munich residents find these areas less appealing:
- Far outer residential zones: lack of cafés, restaurants, and walkable daily-life amenities.
- Areas without direct transit: car-dependent living feels isolating in a city with great public transport.
- Purely residential blocks: no neighborhood character or social infrastructure.
For investors, these "boring" Munich areas can still work well if you buy close to a transit station, since renters care more about commute times than nightlife options and are often willing to trade neighborhood excitement for lower rents and more space.
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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 |
|---|---|---|
| Gutachterausschuss München Herbstanalyse 2025 | Munich's official valuation committee using notarized transaction data. | We used it to anchor real market direction based on actual sales rather than asking prices. We cross-checked portal data against these official figures. |
| ImmoScout24 Price Atlas | Germany's largest property portal with detailed neighborhood-level pricing. | We extracted micro-area price and rent snapshots for specific streets and squares. We converted Q3 2025 data into early 2026 estimates. |
| Bundesbank Real Estate Reports | Germany's central bank with rigorous market monitoring methodology. | We used it to frame macro drivers like interest rates and affordability. We explained why Munich prices cooled and where cycle risks sit. |
| Munich Mietspiegel | Official rent reference used by courts, landlords, and tenants. | We validated that portal rent levels align with legal benchmarks. We grounded our rent context in official city methodology. |
| AirDNA Munich Data | Major short-term rental analytics provider with defined methodology. | We quantified Airbnb performance metrics like occupancy and revenue. We avoided anecdotal claims by using systematic data. |
| InsideAirbnb Munich | Long-running civic dataset mapping short-term rental supply. | We identified where listings concentrate and saturation risks exist. We used it as the geographic layer for STR analysis. |
| Munich Zweckentfremdungssatzung (ZeS) | Binding city statute regulating housing misuse including tourist rentals. | We explained where Airbnb strategies face legal friction. We identified regulatory risk for short-term rental investors. |
| vdp Property Price Index | Widely used German benchmark built from bank valuation data. | We cross-checked price movement direction and magnitude since the peak. We avoided overreacting to short-term portal fluctuations. |
| Colliers Munich Market Report 25/26 | Major global consultancy with structured Munich research. | We triangulated cycle narratives against official transaction data. We used segment commentary for cross-checking our analysis. |
| Freiham Development Portal | Official platform for Munich's biggest new district project. | We explained why western Munich has unusual supply dynamics. We informed our up-and-coming neighborhood discussion. |
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