Munich Property Market and Real Estate Guide
(Munich, Bavaria, Germany)
Munich is capital of the Bavarian region, and a great centre of German culture. With a host of museums, access to the Bavarian Alps and exciting festivals like Oktoberfest, Munich is popular both as a holiday destination and a place to relocate.
Renters enjoy great tax benefits in Germany, so there are a disproportionate number of tenants in the city. Land prices are high, so in many cases it is in a person's best interest to rent rather than buy, even for long periods of time. However, property investors enjoy stable returns of about five percent.
Prices are steep in the architecturally beautiful Altstadt, Bogenhausen and Schwabing areas, but there is opportunity to buy free-standing houses in a 32-km / 20-mile radius of the city centre. Land is much more affordable here, and in some cases plans are underway to add railways or other developments. Potential buyers with a little foresight and a good realtor can find sound investment opportunities in these areas.
Renting Serviced Apartments
Serviced apartments are common in Munich thanks to the prosperous climate for renters. Prices are much higher than regular flats, but there are plenty of benefits included in the arrangement. Potential renters will find everything from standard flats to luxury suites in central Munich, as well as in some of the residential suburbs.
Rather than requiring a minimum stay, the rate adjusts such that these units become more competitive than hotels for stays of a week or longer. Serviced apartments are also likely to have nicer furnishings and free extras like Internet and a kitchen, making them preferable to hotel rooms for long-term expats.
Buying Apartments and Houses
Figure on the sale price of a one-bedroom apartment being disproportionately higher than its monthly rent implies. This can be traced to a number of reasons, including the role land and property ownership played in protecting assets after WWII. Younger generations have more confidence in banks and savings, so the price of land is gradually readjusting. Houses in Munich are built to last, with the most competitive prices in outlying suburbs.
It is important to secure a real estate agent fluent in English and German, as local real estate law is different to that in the UK or the US. The buyer is expected to take care of agent fees, which run at five to six percent. Factor in the registration taxes and the cost of a notary, and total fees exceed ten percent of the purchase price.
Real Estate Agents
Finding a real estate agent who speaks English is one of the hardest parts of buying property and houses in Munich, but it's a key step. An agent who understands local zoning and development trends is invaluable to potential investors, especially since the returns on rental property are tight in Munich.
Check out the following Munich real estate agents:
Address: Edelsbergstrasse 6, Munich, D-80686, Germany
Tel: +49 089 570 080
CKV is a Munich-based investment and real estate firm that specialises in developing prestigious properties for residential and commercial purposes.
ALSAOL Real Estate and Relocation
Address: Herzogstrasse 31, Munich, D-80803, Germany
Tel: +49 089 89 217 759
ALSAOL Real Estate and Relocation advises sellers and potential buyers in Munich. The company also provides detailed relocation services to assist foreign employees moving here.
Address: Eisenbahnstrasse 158, Dreieich, D-63303, Germany
Tel: +49 061 03 310 847
AllGrund is a German real estate agent with a Munich presence. The company also operates an online portal exploring the advantages facing investors.