From a long-term perspective, the Munich real estate market is undeterred by the stable sales and rising price trends. This is made clear by the evaluations of the expert committee for 2020 as a whole. Compared to the historic record year 2019, the monetary turnover in 2020 fell by 18% to around 14 billion euros, and the number of contracts with around 12,000 – a decrease of 5% – could not match the level of the previous year; However, the increased purchase prices show that the demand for residential property has by no means decreased despite the economic challenges posed by Corona.
Existing condominiums rose by around 9% on average in average and good residential areas. For an 80 square meter apartment in a good location, prospective buyers had to invest an average of around 705,000 euros (this corresponds to a square meter price of 8,800 euros). In 2020, new apartments with 75 square meters of living space reached an average price of around 730,000 euros (9,750 euros per square meter). An outlier upwards was a new apartment in Haidhausen, which not only caught the eye with its size of almost 460 sqm living space, but also with its price: the property cost around 15.5 million euros – i.e. 33,700 euros per square meter it was even more expensive than the most expensive single-family home in Munich, which was sold in Bogenhausen in 2019 for 13 million euros. This was again in Bogenhausen in 2020, but this time it amounted to “only” 9.5 million euros.
Apart from that, around 2.1 million euros had to be raised for newly built single-family houses in average and good residential areas. For existing houses, an average of around 1.6 million euros was due. Even semi-detached houses – whether new or existing – now consistently have six-figure sums. This type of property cost an average of EUR 1.3 million in new builds in average and good residential areas or EUR 1.2 million in existing buildings. Munich’s most expensive semi-detached house is currently in Bogenhausen: it changed hands for around 10 million euros.
Hardly any row houses under 1 million euros
The high demand has also pushed up the prices for terraced houses. While it was still possible to get newly built mid-terrace houses for around 920,000 euros on average in 2019, the average price is now 1.1 million. Newly built terraced houses were due for 1.2 million and for existing properties another 1.05 million euros. Only mid-row houses in the existing stock were below the million mark, albeit just under the million mark, with an average of 950,000 euros and thus a 12% increase compared to the previous year.
“Despite all the fears at the beginning of the pandemic, buying residential property in Munich has not become cheaper – on the contrary,” summarizes Thomas Aigner, Managing Director of Aigner Immobilien GmbH and member of the Munich Expert Committee. “The demand has by no means collapsed, it has simply changed. Many people wanted and want to change their location through the experience of lockdown and exit restrictions, sell their property and buy a new one in Munich. In addition, as in 2009/2010, we are feeling a flight into tangible assets in order to protect our own assets from rising inflation. Because times of crisis like the current one lead to increased investments in art, in vintage cars or in real estate, which – especially in Munich – are particularly safe. ”
For the full year 2021, the real estate expert does not expect a price slump, but rather continued growth.