Bavaria

Munich

Munich is Bavaria's capital and Germany's most expensive real estate market, known for its strong economy and high quality of life.

Last updated: October 28, 2026
Editorially reviewed

Asking price/m² (median): €9,140
Cold rent/m² (median): €25.41
Gross rental yield (median): 3.3%; No. 9 of 10 major cities
Transfer Tax: 3.5%; in Bavaria

Asking prices and rents from online listings for apartments, as of November 4, 2026. Not notarised sale prices.

Munich is Germany's most expensive market for owner-occupied property. BMW, Siemens, and Allianz have their headquarters here. Buyers pay Bavaria's 3.5% Grunderwerbsteuer, the lowest rate in Germany. The high purchase prices, in turn, keep rental yields low.

Real Estate Market Overview

The 3.5% Grunderwerbsteuer offsets a small part of the high purchase prices. Major employers come from the automotive, technology, insurance, and media industries.

Bavaria's 3.5% Grunderwerbsteuer is the lowest rate in Germany and reduces acquisition costs
Purchase prices are high relative to rents. Run the numbers for every apartment with a realistic Kaltmiete (cold rent) and all running costs

Best Neighborhoods for Investment

Munich's districts differ widely in price, building age, and tenant mix. The U-Bahn and S-Bahn connect even locations near the city limits to the center.

Schwabing: One of the city's most popular areas to live and go out, with many old apartment buildings from around 1900 and part of the Englischer Garten; to the south it borders the university quarter
Maxvorstadt: Munich's museum quarter, home to LMU and TU Munich; most residents are between 20 and 30 years old
Haidhausen: A former working-class suburb that includes the Gründerzeit-era Franzosenviertel (French Quarter) around Pariser Platz west of the Ostbahnhof, now a popular residential and nightlife area
Bogenhausen: Villas along Prinzregentenstraße and the Isar on its western edge; Alt-Bogenhausen is one of the city's most upscale residential areas
Sendling & Obersendling: Obersendling was long shaped by Siemens and is changing from a business district into a residential one, for example with the Südseite quarter on the former Siemens site; the U3, S7, and S20 serve it

Investment Process

Good locations in Munich are in demand, and sellers prefer buyers whose financing is already in place. Prepare the purchase before you start viewing apartments.

Step 1: Obtain a Finanzierungsbestätigung (financing confirmation) from your bank before searching, so you can commit quickly when the right apartment comes up
Step 2: Set up search requests with several Makler (agents) and property portals, and attend viewings promptly
Step 3: Review the documents, especially the Energieausweis, the Teilungserklärung, and the Hausgeld
Step 4: Have the purchase notarized by a Notar; budget for 3.5% Grunderwerbsteuer plus notary and land registry fees of about 1 to 1.5% of the purchase price combined
Step 5: Hire a Hausverwaltung (property management) for tenant relations and the Nebenkostenabrechnung

Frequently Asked Questions

Why is Munich's Grunderwerbsteuer lower than other cities?

The Grunderwerbsteuer is set at the state (Bundesland) level, not the city level. Bavaria still applies the 3.5% rate from § 11 of the Grunderwerbsteuergesetz, while other states have raised their rates to as much as 6.5%. That keeps closing costs in Munich comparatively low despite the high purchase prices.

Are rental yields in Munich lower than in other German cities?

Yes, as a rule. The gross rental yield is the annual cold rent divided by the purchase price, and in Munich purchase prices are higher relative to rents than in most other large cities. You can see the current yield figures for Munich at the top of this page.

Is it worth investing in Munich despite the high prices?

That depends on your goal. If you want a monthly surplus from rent, Munich's low yields make that hard. In Munich's favor are the headquarters of major employers, and the lowest Grunderwerbsteuer in Germany. Run the numbers for each apartment with financing, Hausgeld, and reserves before you buy.

Rent Prices by Postal Code

All postal codes in Munich

Check an apartment in Munich

A city's median says little about a single apartment. Enter the address, price and rent to see cash flow, net yield and taxes.