Where should you buy property in Munich?

Get all the data you need about the real estate market in Munich

Where should you buy property in Munich today?

For most investment buyers in Munich today, we would start with Moosach, western Laim and Milbertshofen; Berg am Laim and Ramersdorf are the strongest alternatives in the east, while Neuhausen and Pasing make more sense when resale quality matters more than yield.

The reason this ranking looks different from a typical list of Munich's "best neighborhoods" is that the expensive districts are not obviously giving buyers enough extra rent for the extra money. ImmoScout24 currently estimates apartments at roughly €7,420/m² in Moosach, €7,682 in Laim and €7,671 in Milbertshofen-Am Hart. Neuhausen-Nymphenburg is around €9,389/m², Schwabing-West around €10,126 and Maxvorstadt roughly €11,035.

The rental gap is much smaller. Apartment rents are around €20–21/m² in much of the middle ring, compared with roughly €24/m² in several expensive inner districts. So a buyer can easily spend €150,000–€250,000 more on a normal 70 m² apartment without collecting anything close to that difference in rent.

Recent market data also make entry price more important than it was during Munich's boom. The city's Gutachterausschuss found existing apartment prices broadly stable in the first half of 2026: depending on building age they moved between -1% and +5%, averaging roughly +1%. Buyers have returned, with purchase contracts up 3%, but we are currently looking at a recovering market rather than another frantic price boom.

That gives us room to be picky. We want an established neighborhood, good rail access, rental demand that already exists and, ideally, an improvement that future buyers have not fully paid for yet.

Is Munich still a good city to buy property in now?

Yes, Munich is still one of Germany's strongest long-term housing markets, although today's buyer has to be much more disciplined about the price paid.

The city's latest population forecast expects Munich to grow from about 1.60 million residents to 1.83 million by 2045. That is roughly 226,000 additional people, or 14% growth, in a city where housing is already scarce.

Munich itself says about 8,500 homes need to be completed annually to accommodate its future growth. Recent construction has been well below that target. Only 4,348 homes were completed in 2025, according to the city's statistics. Even if one avoids assuming that every new resident needs a separate home, the gap is large enough to keep housing pressure relevant.

The latest transaction data make the picture more interesting. Munich's Gutachterausschuss recorded about 4,950 sales of apartments and other individually owned units in the first half of 2026, including roughly 650 new-build properties. Across the entire property market, the number of purchase contracts rose 3% and transaction value increased 7% to around €5.4 billion.

Buyers are coming back while prices remain much calmer than during the previous cycle. We like that setup better than buying after another double-digit surge.

Have Munich apartment prices already bottomed?

Munich apartment prices look much closer to a bottom than to another major correction today, but the latest official numbers still show stabilization rather than a new boom.

The sharp adjustment came earlier. ImmoScout24's neighborhood series still puts apartments in several Munich districts roughly 11–12% below their second-quarter 2022 levels. Milbertshofen-Am Hart is down about 11.8% from that point, Berg am Laim about 12.2%, and Neuhausen-Nymphenburg about 11.2%.

More recently, the official transaction market has flattened out. Munich's Gutachterausschuss found existing apartment prices averaging around 1% higher year on year in the first half of 2026. The result varied by building age, from a 1% decline to gains of as much as 5%.

New apartments were also mixed. Average-location new builds fell about 2%, while good-location new builds rose roughly 4%.

For buyers, this is a decent setup. Munich has already absorbed a meaningful repricing, transaction activity has started to recover, and sellers still cannot assume that every apartment will rise sharply. We would be comfortable buying a strong property today, but we would still negotiate hard on an ordinary one.

Which Munich neighborhoods give you the most rent for the purchase price?

Ramersdorf-Perlach, Aubing, Feldmoching, Moosach, Milbertshofen and Berg am Laim currently give buyers much more rent for their money than Munich's prestige districts.

Using ImmoScout24's current apartment price and rent estimates from the same dataset, the gap is easy to see. Ramersdorf-Perlach is around €7,157/m² to buy and €19.45/m² per month to rent. Milbertshofen-Am Hart is about €7,671 and €20.71. Aubing-Lochhausen-Langwied is cheaper still at roughly €6,697 with rents around €18.18.

At the other end, Maxvorstadt costs roughly €11,035/m² while rents average about €23.86. Schwabing-West is around €10,126 and €23.70. These are excellent neighborhoods, but tenants do not pay anything close to the same premium that buyers do.

A simple gross yield calculation puts much of the middle ring around 3.1–3.3%, while Maxvorstadt lands near 2.6%. These figures are only directional because portal estimates do not account for the exact apartment, vacancy, maintenance, service charges or rent regulation. Still, a gap of 0.6–0.7 percentage points in a city with low yields is meaningful.

Is Moosach the best place to buy property in Munich right now?

Moosach is our strongest all-round Munich investment pick today because the neighborhood is still priced like an outer district even though its transport and rental demand are already much stronger than that description suggests.

ImmoScout24 currently estimates apartments around €7,420/m² in Moosach. Neuhausen-Nymphenburg, directly to the southeast, is around €9,389. On a 70 m² apartment, the difference is roughly €138,000 before purchase costs.

Rents narrow that gap dramatically. Moosach apartments are around €20–21/m², while Neuhausen is roughly €24. A landlord therefore pays almost 27% more per square metre in Neuhausen for a rental premium closer to the mid-teens.

Moosach also does not require us to wait for a speculative transport project. The district already has the U3, the S1, tram connections and regional rail at Moosach station. From the better-positioned southern and eastern parts, Neuhausen, the Olympic area and BMW's northern employment cluster are all close.

The trade-off is visible on the ground. Moosach is much less consistent than Neuhausen. Dachauer Straße can be noisy, some large post-war developments feel anonymous, and one street can be much more attractive than the next.

We would therefore target a normal resale apartment within a short walk of the U3 or S-Bahn, preferably on a quieter street. At today's prices, that gives us much of Munich's rental demand without paying the inner-city premium.

Is western Laim the best place to buy before the U5 arrives?

Western Laim is currently Munich's clearest transport-upgrade property play because the new U5 is already deep into construction rather than sitting on a planning map.

The extension runs 3.8 kilometres from Laimer Platz to Pasing with new stations at Baumschule Laim, Am Knie and Pasing. Construction started years ago, and work is now taking place along the entire corridor. One particularly useful recent development was the tunnel breakthrough in the Laim construction section: Munich's building department reported that the roughly 1.1-kilometre underground structure there had become continuously accessible.

That makes Baumschule Laim more interesting than a proposed station with an uncertain future. Streets around Willibaldstraße that currently require a bus, bike ride or longer walk before reaching the U-Bahn will eventually get direct access to the U5 toward Heimeranplatz, Theresienwiese, Hauptbahnhof, Karlsplatz and central Munich.

The district remains reasonably priced. ImmoScout24 puts Laim apartments around €7,682/m², and Immowelt's latest estimate is almost identical at roughly €7,655.

We would focus on apartments about five to ten minutes' walk from Baumschule Laim. That is close enough to capture the transport upgrade but far enough to avoid paying for station frontage or suffering the worst traffic and construction exposure.

There is also no need to pretend the payoff is immediate. Major surface disruption around Gotthardstraße is expected to continue for years. Western Laim works best for a buyer who can hold through the construction period and let the neighborhood become easier to reach over time.

Should you buy in Pasing or Laim?

We would choose Pasing for lower risk and western Laim for more upside from change.

Pasing already has what many Munich neighborhoods are trying to obtain: a major S-Bahn interchange, regional trains, long-distance trains, trams, buses, extensive shopping and a proper town centre. It has worked as a transport hub for decades.

The U5 will make Pasing better, but it does not transform the neighborhood in the same way that Baumschule Laim changes western Laim. Pasing already had excellent rail access before the extension began.

This distinction is useful when buying property. A good Pasing apartment has a very easy resale story: future buyers immediately understand why the location works. Western Laim requires a little more imagination today, which is precisely where some of the upside can still come from.

For an owner-occupier who wants certainty, we would lean toward Pasing. For an investor willing to hold through construction, we prefer the quieter residential pockets around the future Baumschule Laim station.

Is Milbertshofen still cheap compared with Schwabing?

Yes, Milbertshofen is still surprisingly cheap next to Schwabing, and the latest rent data make that discount difficult to ignore.

ImmoScout24 estimates apartments across Milbertshofen-Am Hart at roughly €7,671/m². Schwabing-West is around €10,126. A 70 m² apartment therefore costs about €172,000 more in Schwabing before taxes and fees.

Rental prices are far closer. Milbertshofen-Am Hart averages around €20.71/m², while Schwabing-West is approximately €23.70. The purchase premium is roughly 32%; the rental premium is about 14%.

The best part of the district is Milbertshofen proper rather than simply anything carrying the Milbertshofen-Am Hart label. ImmoScout24's more granular data put apartments in Milbertshofen itself around €8,153/m², with rents near €21.28. That is more expensive than Am Hart but also substantially closer to the Olympic Park, BMW and the inner city.

BMW is particularly relevant here because the neighborhood sits beside one of Munich's largest concentrations of high-paying employment. Add the U2, the Olympic area and easy access toward Schwabing, and we have a tenant pool that does not depend on one new development succeeding.

For buyers priced out of Schwabing, Milbertshofen is currently one of the most logical places to look before moving much farther from the centre.

Is Berg am Laim one of Munich's best-value neighborhoods?

Berg am Laim is one of the better-value places to buy in eastern Munich today, especially when the apartment sits on a quiet street within walking distance of fast public transport.

ImmoScout24 currently puts apartments at about €7,498/m² and rents at €19.83/m². Immowelt comes in slightly lower on purchase prices at roughly €7,223. Either way, Berg am Laim remains substantially cheaper than nearby Haidhausen and Bogenhausen.

The location is stronger than the district's reputation sometimes suggests. S-Bahn connections get residents quickly toward Ostbahnhof and the centre, while trams serve other parts of the neighborhood. Haidhausen sits immediately west and Bogenhausen to the north.

The catch is noise. Berg am Laim contains railway infrastructure, Innsbrucker Ring, Berg-am-Laim-Straße and several busy approaches into eastern Munich. Two apartments that look almost identical on a district-level price chart can have completely different living conditions.

We would happily buy a quiet resale apartment seven or eight minutes from Berg am Laim S-Bahn. We would demand a much bigger discount for one facing the tracks or a major road. Here, the exact street matters more than the district average.

Is Ramersdorf-Perlach actually cheap enough to be interesting?

Yes, Ramersdorf-Perlach is cheap enough to deserve serious attention now, although the district average hides several very different housing markets.

ImmoScout24 estimates apartments around €7,157/m² across the district with rents near €19.45/m². In Ramersdorf itself, apartment prices are roughly €7,299/m². Those numbers put the area firmly among the better rental-value parts of Munich.

Location explains why we prefer Ramersdorf itself to treating the whole district as one investment. Ramersdorf sits much closer to the inner city, Ostbahnhof and the eastern employment corridor. Neuperlach can be considerably cheaper, but many properties there sit in large post-war developments where building condition and homeowners' association finances become much more important.

That is where apparent bargains can go wrong. A low purchase price loses its appeal quickly if the building needs a new heating system, façade work, roof repairs or other expensive modernization without enough money in the reserve fund.

So we would search Ramersdorf aggressively, especially near useful transport, and approach large older Neuperlach complexes property by property rather than assuming the low district price is automatically a bargain.

Is Aubing or Freiham the better long-term property bet?

We prefer established Aubing to expensive new-build apartments in Freiham because Aubing captures much of western Munich's improvement without competing directly with an enormous amount of new housing.

Aubing-Lochhausen-Langwied is one of the cheapest districts in Munich. ImmoScout24 currently estimates apartments around €6,697/m² and rents around €18.18, giving buyers a much lower entry point than Laim, Pasing or Neuhausen.

Freiham has a much bigger growth story. Munich plans roughly 11,000 homes there by around 2035 for more than 25,000 residents. The district already has a major education campus and sport facilities, while schools, childcare, retail, parks and other services continue to fill in.

The U5 will eventually extend beyond Pasing to Freiham as well. Munich currently says service to Freiham can begin no earlier than 2035, and the city is already building underground preparatory structures for the future Freiham-Zentrum station.

That is a real improvement, but buyers also need to count the competition. Thousands of apartments are being created precisely in the same place where the infrastructure is improving.

Established Aubing gives us a cleaner setup. The neighborhood already exists, has S-Bahn access and should benefit as western Munich gains more amenities. We would rather buy a good Aubing resale at a clear discount than pay a developer today for every improvement that Freiham may deliver over the next decade.

Is Feldmoching a bargain before northern Munich gets built out?

Feldmoching is interesting at today's prices, but we would only buy an apartment that already works without betting on every future transport and development plan coming true.

ImmoScout24 currently estimates apartments across Feldmoching-Hasenbergl at roughly €7,013/m² with rents around €19.08. That puts the district among Munich's cheaper markets.

There is also a remarkable amount planned around northern Munich. The legally approved Lerchenauer Straße quarter alone contains around 1,700 homes. Eggarten is planned for about 1,900. The Ratold- and Raheinstraße development beside Feldmoching station adds roughly another 900.

Those three projects already amount to approximately 4,500 homes, before counting other northern projects or Munich's larger long-term development plans.

Some of that new construction should improve shops, schools, public space and transport. It also means a lot of future competition for anyone hoping scarcity alone will push an ordinary apartment sharply higher.

The safest version of the Feldmoching trade is therefore close to what already works: the U2 and S-Bahn interchange, useful local services and a quiet residential street. Paying extra because a much larger northern Munich might eventually emerge is a more speculative bet than buying beside the U5 construction in Laim.

Are Neuhausen, Schwabing and Maxvorstadt still worth buying?

Neuhausen, Schwabing and Maxvorstadt are still excellent places to own property, but today we would buy them for scarcity and quality rather than for strong rental returns.

Neuhausen-Nymphenburg is the easiest of the three to justify. Apartments are around €9,389/m² according to ImmoScout24, and the district offers strong transport, attractive streets, established retail, Nymphenburg Palace, proximity to the centre and deep demand from affluent owner-occupiers.

Schwabing-West rises to roughly €10,126/m² and Maxvorstadt to €11,035. Their rental prices, at around €23.70 and €23.86 respectively, do not rise at anything like the same rate.

As seen above, Maxvorstadt's rough gross yield comes out near 2.6%. Buyers are paying mainly for centrality, scarcity and the probability that another affluent buyer will want the apartment later.

That can still be a very good strategy for exceptional property. A beautiful Altbau apartment with light, a good floor plan and a quiet position in Maxvorstadt is genuinely difficult to replace. We become much less enthusiastic about an ordinary unit at €11,000–€12,000/m² whose only exceptional feature is the postcode.

For someone buying a home and planning to stay for fifteen years, Neuhausen or Schwabing may easily justify the premium. For a landlord choosing where to put the next €700,000, Moosach, Laim or Milbertshofen currently give us more to work with.

Should you buy a new-build apartment in Munich?

We would usually choose a good resale apartment over a Munich new build today because the current new-build premium is still too large in many neighborhoods.

Munich's Gutachterausschuss puts actual first-half 2026 new-build transactions at roughly €9,800/m² in average residential locations and €10,550/m² in good ones.

Compare that with current resale-market estimates around €7,000–€8,000/m² in Moosach, Laim, Milbertshofen, Berg am Laim and Ramersdorf-Perlach. On a 70 m² apartment, a €2,000/m² premium adds €140,000 to the purchase price. A €3,000/m² premium adds €210,000.

New construction gives buyers real advantages: modern insulation, efficient heating, fewer immediate repairs and layouts designed for today's market. We are happy to pay something for those benefits.

The problem comes when the new-build premium assumes several years of future appreciation before the buyer even receives the keys. That happens particularly around new infrastructure and fashionable redevelopment areas.

A well-run 1990s or 2000s building with a healthy reserve fund can be a much more attractive investment. Older post-war buildings can work too, but only after checking the roof, heating, façade, windows, energy performance, planned renovations and homeowners' association accounts.

What kind of Munich apartment should you actually look for?

The Munich apartment we would hunt for today is a fairly ordinary resale property on a quiet street, five to ten minutes from U-Bahn or S-Bahn, with a good floor plan and no obvious building-level financial problem.

The "ordinary" part is deliberate. Highly unusual apartments are harder to price and can shrink the future buyer pool. A well-laid-out two- or three-room apartment appeals to singles, couples, small families, investors and future owner-occupiers.

We care a lot about the walk to rail. In Munich, fast public transport makes everyday life easier and widens the pool of tenants and future buyers. But being directly beside a station is often unnecessary. An apartment 500–800 metres away on a calm street can keep most of the accessibility benefit without the noise.

Building finances deserve just as much attention. These days, an apparently cheap older apartment can turn expensive fast if the homeowners' association has weak reserves and major energy or structural work ahead.

We would sacrifice a fashionable postcode before sacrificing light, noise level, floor plan, rail access or a healthy building. Those are the characteristics a future buyer will still care about even if neighborhood fashions change.

So where should you buy property in Munich?

Our first choice for a Munich investment today is Moosach; western Laim is the better bet if we want upside from a concrete change, while Milbertshofen is the strongest alternative for buyers who want to stay relatively close to central Munich without paying Schwabing prices.

Moosach wins because very little has to go right. The neighborhood already has strong rail connections, rents near the Munich mainstream and apartment prices around €7,400/m². It is still dramatically cheaper than Neuhausen, Schwabing and Maxvorstadt.

Western Laim comes next because the U5 improvement is unusually tangible. Construction is active, the tunnel works have reached major milestones, and Baumschule Laim will give an established residential area direct U-Bahn access it does not have today. We would accept the long construction period for the right apartment.

Milbertshofen is less of an infrastructure story and more of a pricing anomaly. Apartments remain around €7,700/m² across Milbertshofen-Am Hart even though rents sit above €20/m² and BMW, the Olympic Park, the U2 and Schwabing are nearby.

For eastern Munich, we would look hardest at Berg am Laim and Ramersdorf. Trudering is a strong choice for families who care more about stability than maximizing yield. Pasing is one of the safest places on the list if easy resale matters most.

Aubing appeals to us at the cheaper end, while Freiham and Feldmoching require more caution because new infrastructure arrives alongside large amounts of new housing.

Neuhausen, Schwabing and Maxvorstadt remain excellent long-term ownership markets, especially for people buying their own home. At today's prices, however, much of their superiority is already in the purchase price.

So if we had to narrow Munich down to three places right now, we would buy in Moosach for the strongest overall value, around Baumschule Laim for the clearest medium-term improvement, and in Milbertshofen for the best combination of relative centrality, employment demand and price.

Fact-checked and reviewed by our local expert

✓✓✓

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.

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Munich. If you’d like to learn more about us, you can check our presentation page.