Munich – the Bavarian capital and a global metropolis that attracts millions of people every year, not just for a short visit, but also to live. In 2025, the city will have a population of around 1,510,378. With its diverse offerings, ranging from first-class gastronomy, art and culture to a wide range of leisure activities, Munich has something for everyone. The city is not only known for the Oktoberfest, but also for its breathtaking natural surroundings. But all this does not come for free – and this is particularly evident in the constantly rising rents in Munich.
Munich’s real estate market: an expensive place for tenants
While the real estate market in the Bavarian capital has promising forecasts for buyers – with a retention rate of three to six percent of the sales value – things look less rosy for tenants. Munich is following the nationwide trend, as the current IW Housing Index shows. Anyone renting a new apartment in Munich must expect significantly higher prices than a year ago. While contract rents rose by up to 4.7% nationwide, the increase in Munich was 5.9%. The main reason: too little new construction. While supply is stagnating, the growing population is driving demand ever higher – a problem that is also affecting other major German cities such as Berlin.
“Rents are the big issue,” says Munich real estate expert Martin Schäfer. But moving to more affordable outlying areas is not an option for many – mainly because of the unreliable rail connections. Theoretically, Munich could be reached from commuter cities such as Augsburg in just 25 minutes, but delays make the daily commute unattractive. For many, the only choice is therefore a smaller but more expensive apartment in the city.
Some Munich apartments have recently reached rents of up to 10,000 euros. The most expensive properties are to be found in the old town, more precisely in Lehel – for example, a 340-square-meter roof terrace apartment or a maisonette for 13,550 euros, which corresponds to around 40 euros per square meter. Who can still afford these rents in Munich is another question.