Real estate situation Munich.
Munich has its qualities.
The very sharp price increases in recent years and the lack of offers drive more and more seekers from the city. Munich is the top of the German real estate market. - that is undoubtedly certain. Not only in terms of rents and purchase prices, but also in terms of demand and last but not least in terms of attractiveness for topics such as leisure, work, purchasing power and, and, and ...
However, Munich is also the first major German city in which people take to the streets and give vent to their displeasure with the price developments of recent years. According to police reports, there were over 25,000 people in July and over 10,000 in September. Whether the demo motto "Speculated" was really chosen correctly, is an open question. The extreme price rises are not just to blame for the speculators. Unless you count the city of Munich.
The fact is, the (still) happy and peaceful demonstrating residents are not right-wing or left-wing groups or the much cited mob. Here, especially the middle class is on the way, because even that can no longer afford living space in Munich. However, the price increases driving the citizens onto the streets are absolutely normal in international comparison.
At the beginning of the year, the Frankfurter Allgemeine Zeitung stated: According to data published by the Canadian rating agency DBRS, house prices in Germany increased by 29 percent between the beginning of 2011 and September 2017. This is the fourth position among 15 selected EU countries. However, the price increases in Germany are still relatively close to the mean of 17 percent. By contrast, Swedes and Norwegians have to pocket more than 50 or 40 percent more than they did at the beginning of 2011. The Austrian neighbors also hit harder.
This does not only apply to the overall German average, even in international comparison. Munich is no runaway up. In a current housing cost statistics, Munich is just in twelfth place out of 59 cities surveyed. As more and more international and inherited capital comes to the city, the demand of "normal" customers is not eroding.
Munich is bursting at the seams and prices will not fall in city locations. In good locations, you even have to calculate for existing real estate sometimes 10,000 euros per square meter. And one square meter of new construction can hardly be got under 6,000 euros. Even the simplest of locations - and there are hardly any in urban areas - are affected by the new construction boom and are in demand.
Dividing the Bavarian capital into different circles results in an abstruse picture. Within the Altstadtrings the average earner can not afford a property for a long time. Even well-situated double earners can no longer afford the asking prices. Not to mention families without inherited capital. With current land values of 4,000 to 5,000 euros per square meter in Nymphenburg / Gern or Bogenhausen, this is no wonder.
Within the Mittlerer Ring, 10,000 euros per square meter have almost become the norm. Again, many search customers come to their financial limits and really spectacular architecture they receive for the very high prices, unfortunately, only rarely.
For some time, Munich's outskirts and, more recently, the bacon belt have increasingly come into focus. You can not get any bargains here either, but buying a property is especially possible for families in these locations.
The reasons for the galloping purchase prices are complex and homemade. The low interest rate phase, which has been ongoing for years, is partly responsible for this. She has paved the way for the real estate boom. But the city of Munich has its share of this. Not only that since years for the immense influx clearly too few apartments are approved and built. In the past, their own plots were mostly sold to the highest bidder rather than sold to investors with good and coherent concepts. This then a little cheaper.
So one would not have to call 8,000 euros per square meter in anonymous building blocks in Munich's outskirts. In addition, the city should also ensure that the much-needed affordable housing is provided. The current situation shows that many overpriced properties, especially in prime locations such as Bogenhausen or Grünwald, have longer marketing times.
The exploding construction costs also contribute to the price rally. Increases in the double-digit percentage range have been on the agenda for years - also thanks to new energy regulations. The extent to which ever stricter requirements, even with regard to the later disposal of styrofoam facades and the like in the case of a demolition, still makes sense, must be discussed elsewhere. They are always a cost driver.
An increasing number of seekers are turning their backs on the city. If not even a reduction in living space or the object type leads to the fact that you can afford Munich, often only the way out. This can either be a previously undervalued peripheral location or a step into the surrounding area. Even less popular locations such as Milbertshofen-Am Hart, Pasing or Ramersdorf have been in high demand in recent years and have developed extremely positively. And locations like Giesing, Sendling or Berg am Laim are well on the way to becoming the new Au-Haidhausen and Glockenbach.