Is buying a property in Schwabing a good investment?

Last updated on December 29, 2023

Yes, the analysis of Munich's property market is included in our pack

If you've seen the vibrant scene and cultural richness of Schwabing, you might consider making this Munich district your next property investment.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Germany, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Schwabing?

Schwabing, a district in Munich holds a unique charm that makes it a sought-after location for property buyers.

One of the most distinctive attributes of Schwabing is its rich cultural history and bohemian flair. Dating back to the 19th century, Schwabing has been a hub for artists, intellectuals, and creatives.

This historical significance infuses the area with a unique character that's hard to find elsewhere. It's like walking through a living piece of history, where every street and building has a story to tell.

Comparatively, Schwabing offers a different vibe from other areas in Munich. While places like Maxvorstadt are known for their educational institutions and Bogenhausen for upscale living, Schwabing strikes a balance with its vibrant cultural scene, lush green spaces like the English Garden, and a variety of cafes, boutiques, and galleries.

This blend of urban living with a touch of nature and culture provides a lifestyle that's both dynamic and relaxing.

Looking at the trends, it seems likely. The district's appeal lies in its timeless qualities – cultural richness, architectural beauty, and a strong sense of community. These aren't trends that fade; they're fundamental qualities that continue to attract people.

Speaking of attraction, Schwabing is a magnet for a diverse group of people. You'll find young professionals drawn by the dynamic lifestyle, artists inspired by the area's history and ambiance, and families appreciating the safe, community-oriented environment. It's this mix of people that keeps Schwabing vibrant and evolving.

However, every place has its drawbacks, and Schwabing is no exception. The popularity of the area means property prices can be high, potentially putting it out of reach for some buyers.

Additionally, with its bustling streets and lively atmosphere, it might not be the first choice for those seeking a quieter, more suburban lifestyle. Parking can be a challenge too, a common issue in lively urban areas.

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Why is Schwabing a nice place to live?

Schwabing offers a lifestyle that's both culturally rich and pleasantly modern, making it a desirable place to live.

The area's charm lies in its blend of historical significance and contemporary living, which creates a unique environment.

The lifestyle and culture in Schwabing are vibrant and diverse. Known historically as a bohemian quarter, it's home to numerous cafes, art galleries, and boutiques, each adding to its artistic and intellectual legacy.

The English Garden, one of the world's largest urban parks, provides a lush green oasis, perfect for relaxation and outdoor activities. This park is not just a green space; it's a social hub where people of all ages come to unwind, showcasing the area's commitment to balancing urban living with nature.

Schwabing is also known for its welcoming expat community. With universities and multinational companies nearby, it attracts a global crowd, making it a melting pot of cultures.

This diversity is reflected in the variety of international restaurants and cultural events, offering a slice of global life in the heart of Munich.

Living in Schwabing, however, does come with a higher cost. Due to its popularity and central location, housing prices tend to be on the higher end compared to some other parts of Munich. But many find the cost justifiable given the quality of life and the amenities the area offers.

Safety is a key aspect of Schwabing's appeal. It's generally considered a safe neighborhood, with well-lit streets and a visible police presence, ensuring a sense of security for its residents.

Regarding amenities, Schwabing is well-equipped. Educational facilities like Ludwig Maximilian University and various international schools cater to diverse educational needs.

Healthcare services are top-notch, with facilities like Klinikum Schwabing offering comprehensive medical care. For shopping and leisure, Münchner Freiheit and Leopoldstraße are bustling areas with a variety of shops, restaurants, and entertainment options.

The quality of infrastructure in Schwabing is impressive. The roads are well-maintained, and utility services, including internet connectivity, are generally reliable and of high standard, meeting the demands of a modern urban lifestyle.

Accessibility is another of Schwabing's strengths. It's well connected to other parts of Munich and major transport hubs.

The Munich Airport is easily accessible via public transport or car. Speaking of public transportation, Schwabing is served by an efficient network of U-Bahn (subway), S-Bahn (suburban train), trams, and buses, making commuting convenient and environmentally friendly.

How much does it cost to buy real estate in Schwabing?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Germany.

Understanding the cost of buying property in Schwabing, involves looking at the types of properties available, the demand for these properties, and how the market has evolved over time.

In Schwabing, a diverse range of residential properties is available, including apartments, townhouses, and, albeit less commonly, luxury villas. The most common and in high demand are apartments, particularly those that blend historical charm with modern amenities.

This demand is driven by the neighborhood's blend of cultural richness, vibrant lifestyle, and its appeal to both professionals and families.

Regarding the property market, Schwabing features a mix of both new developments and resale properties. The new developments often focus on modern apartments and are designed to cater to the high demand for contemporary living spaces in this historic area.

Resale properties, on the other hand, offer the unique charm of older buildings, which is a significant draw for many buyers.

Talking about prices, the property market in Schwabing is on the higher end, reflecting its popularity and central location in Munich. Prices per square meter can vary significantly based on factors like the age of the building, location within the district, and the quality of the amenities.

As a rough guide, you might find properties ranging from about €10,000 to €15,000 per square meter, though luxury properties can command even higher prices.

Over recent years, property values in Schwabing have generally seen an upward trend. This increase is attributed to the continuous demand for living in this attractive area, combined with the overall growth of Munich's property market. Given its desirability and limited space for new developments, property values have remained robust.

Looking ahead, any upcoming developments or city planning changes could potentially impact property values.

For instance, enhancements in public transportation or the development of new public spaces could increase the attractiveness of the area, thus boosting property values.

Similarly, any large-scale construction projects could temporarily affect the desirability of nearby properties.

Predicting the real estate market in Schwabing for the coming years hinges on several factors. The ongoing appeal of the area, its cultural significance, and its status as a desirable place to live suggest that property values are likely to remain stable or even increase.

Factors indicating a potential increase in value include ongoing urban development, improvements in infrastructure, and the steady demand for housing in prime Munich locations.

Where is the best area to buy a property in Schwabing?

When considering where to buy a property in Schwabing, it's important to understand how different areas within this district vary in atmosphere, property types, and prices.

Schwabing is broadly divided into two parts; Schwabing-West and Alt-Schwabing. Schwabing-West, closer to the university and the Olympiapark, has a lively, youthful vibe, with numerous cafes, shops, and a vibrant street life.

Here, you'll find a mix of old and new buildings, with apartments being the predominant property type. The area is known for its blend of traditional Munich architecture and modern living spaces.

Prices in Schwabing-West are generally high but can vary depending on the exact location and the age of the property.

Alt-Schwabing, the area around Leopoldstraße and closer to the English Garden, is more historic and has a distinctly bohemian feel. This part of Schwabing is known for its beautiful old buildings, art galleries, and a more laid-back atmosphere.

Properties here often come with a higher price tag due to their historical significance and the allure of living near one of Munich's largest parks.

As for up-and-coming areas, the sections around Elisabethplatz and near the Nordbad are gaining popularity.

These areas offer a more residential feel, with quieter streets and less commercial activity, yet are still within easy reach of Schwabing's vibrant center. They are increasingly sought after for their balance of peaceful living and proximity to amenities.

If you're looking to buy a property in Schwabing, areas around Münchner Freiheit and near the English Garden are highly desirable.

These locations offer easy access to green spaces, a variety of shops and restaurants, and a lively urban atmosphere. Properties here are often in high demand due to the quality of life they offer.

On the other hand, areas closer to the Mittlerer Ring, Munich's inner-city ring road, might be less advisable for those seeking a quieter lifestyle.

The proximity to the road means more traffic and potentially more noise, which could detract from the otherwise pleasant residential atmosphere of Schwabing.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Germany.

Area	Atmosphere	Property Types	Price Range	Desirability
Schwabing-West	Lively, youthful, near university and Olympiapark	Mix of old and new buildings, predominantly apartments	High, varies by location and property age	Popular among young professionals and students
Alt-Schwabing	Historic, bohemian, near English Garden	Beautiful old buildings, art galleries	Generally higher due to historical significance	Attracts those seeking historical charm and park proximity
Elisabethplatz and Nordbad area	Residential, quieter streets	Varied, with quieter residential options	Rising popularity, offers balance of peace and amenities	Growing interest for peaceful yet central living
Münchner Freiheit and English Garden	Urban, lively, green spaces	Diverse, highly sought after	High, in demand due to location and lifestyle quality	Highly desirable for urban living with nature access
Near Mittlerer Ring	More traffic, potentially noisier	Varied, potentially less expensive due to location	Lower due to traffic and noise	Less advisable for those seeking quieter living

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Is there a strong rental demand in Schwabing?

In Schwabing, there is indeed a strong rental demand, shaped by various factors like its prime location, vibrant lifestyle, and demographic diversity.

The rental market in Schwabing leans more towards long-term rentals. This is primarily due to the presence of universities, like Ludwig Maximilian University, and several multinational corporations in and around the area, attracting students, academics, and professionals. These groups often seek stability and longer rental periods.

The target demographic for rentals in Schwabing is quite diverse. Students and young professionals, often single or in shared living arrangements, are a significant part of the tenant profile. They typically look for smaller apartments or studio flats that are affordable yet close to universities and workplaces.

Families, another key demographic, are drawn to the area due to its safe environment, green spaces like the English Garden, and good schools. They usually look for larger apartments or townhouses.

In terms of specific areas within Schwabing, near the university and close to the English Garden are particularly sought-after. These locations offer a balance of vibrant urban life and tranquility, appealing to a wide range of potential tenants.

Amenities play a crucial role in reducing vacancy rates. Properties with modern facilities like high-speed internet, a well-equipped kitchen, and a balcony or terrace are more attractive, especially to the younger demographic.

Proximity to public transportation, parks, and local amenities like shops and restaurants also adds to a property's appeal. Such features not only make life easier for tenants but also enhance the overall living experience, making properties more desirable.

Regarding potential returns on investment, properties in Schwabing can offer attractive yields, although exact figures can vary. Generally, the area's strong rental demand and high desirability can translate into steady rental income and potential for capital appreciation.

With the ongoing demand, landlords can expect competitive rental rates, keeping in mind that Schwabing is one of the more upscale districts in Munich.

Lastly, looking at the type of properties gaining more demand, smaller apartments, particularly those well-connected to public transport and local amenities, are increasingly popular. These properties cater to the significant number of students and young professionals in the area.

Additionally, properties that offer flexibility, like those suitable for shared living or with adaptable spaces, are becoming more attractive, potentially offering better yields due to their broader appeal.

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Is it easy to buy a property as foreigner in Schwabing?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Germany.

Buying a property as a foreigner in Schwabing, Munich is generally straightforward, but there are certain aspects to consider for a smooth transaction.

Firstly, Germany does not impose any specific regulations or restrictions on foreign buyers. This means that as a foreigner, you have the same rights to purchase property as German citizens.

This open policy is one of the reasons why Germany, and specifically Munich, is attractive to international investors.

The purchasing process in Schwabing typically starts with identifying the property you wish to buy. This is followed by making an offer, signing a sales agreement, and completing the transaction with a notary's involvement.

The process is legally regulated and quite structured in Germany. It's essential to be aware that once the sales agreement is signed in front of a notary, the buyer is legally committed to the purchase.

However, there are risks associated with property investment in Schwabing, as with any real estate market. The primary risks include market volatility and the potential for property values to fluctuate.

Additionally, as Schwabing is a sought-after area, high demand can inflate prices, potentially affecting the investment's long-term value.

A classic pitfall in the German property market is underestimating the additional costs involved in the purchase, such as the notary fees, real estate transfer tax, and possible agent fees. These can add up to a significant amount, often around 10-15% of the property's purchase price.

Another unique aspect is the "pre-emption right" (Vorkaufsrecht) that some municipalities have, allowing them to purchase properties before the sale is finalized to a private buyer, though this is more of a rarity.

Working with a local real estate agent or lawyer is highly advisable. They can provide invaluable guidance on the local market, help navigate the legal complexities, and ensure all necessary due diligence is carried out.

This is especially important for foreign buyers who might not be familiar with the German real estate system and its nuances.

Common exit strategies for property investors in Schwabing include selling the property for capital gain or renting it out for continuous income. The rental market in Schwabing is robust, making it a viable option for long-term investment.

However, if you plan to sell, it's crucial to monitor the market to choose an opportune time, as property values in prime locations like Schwabing can fluctuate based on various economic factors.