Published in March 2021 Munich - Residential City Profile - JLL
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Residential City Profile Munich Munich | 2nd half of 2020 Published in March 2021
Housing market Munich
Munich’s population continues to grow in 2020 meant a rise in the proportion of households with require-
With an increase of around 0.2% to a total of 1.562 million, ments for larger residential units. Over the next few years
Munich’s population grew in 2020 despite the COVID-19 this trend was counteracted by less inward migration and
crisis. Due to the hikes in housing costs and the poor af- the significant increase in supply. After the high point in
fordability of own-occupied residential property, the num- terms of completions with 9,351 new apartments in 2018,
ber of households leaving the city seeking larger areas of which was double the number from 10 years previously,
living space has increased over the last few years, and this had fallen to 7,121 new apartments in 2019. Although
reached its low point in 2017 when the outward migration the number of new building permits fell for the second
balance was 12,600. The increased birth rates in particular successive year in 2019 with 10,929 new apartments, both
completions and permits remained at a high level. In this
context, a relatively high level of completions over the me-
Housing supply and demand for dium-term are expected. To achieve the objective of a fur-
new buildings Munich ther 120,000 completions by 2030, in addition to increas-
ing building density in developed areas, Munich’s city
council is promoting the construction of large residential
estates in suburban areas. There is no alternative to this in
view of the increasing scarcity of building land and the
high land prices. The requirement for additional apart-
ments will also remain high over the next few years:
JLL’s requirements analysis anticipates a total of around
7,350 new apartments a year in the intermediate scenario.
This will not be affected by the negative migration balance
in 2020 (-3,460 net migration) which is mainly due to
COVID-19 restrictions. The most significant drivers of de-
mand for residential space are the catch-up potential in
terms of residential demand, structural demographic
changes and international inward migration.
*Additional annual need for housing units (includes also apartments in detached
houses) without consideration of current construction deficits.
Source: destatis, JLL; Status: January 2021
Selected developments under constructions
Name Location Residential units Completion date
div. Projekte Quartier Paul-Gerhardt-Allee Pasing-Obermenzing approx. 4,000 as of 2021
Stadtquartier DiamaltPark Allach-Untermenzing approx. 720 2022
Stadtteilentwicklung Prinz-Eugen-Kaserne Bogenhausen approx. 640 2022
Stadtquartier ehemaliger Viehhof Sendling Sendling approx. 600 2022
Stadtquartier Lipperheidestraße Pasing-Obermenzing approx. 340 2021
Source: Thomas Daily, JLL; Status: January 2021
Residential City Profile | H2 2020 Munich 2Rental price growth continuing with
slowing momentum
Asking rents in Munich rose by 2.8% year-on-year in the
second half of 2020 to their current level of €20.55/sqm/
month. This is a fall in growth compared to the 5-year
Distribution of rental listings by price group average (5.0% p.a.) and the same period the previous year
(3.8%). In the prime segment (top 10% of all rental offers),
rents stagnated at a level of €30.00/sqm/month after a hike
of 4.9% in the previous year. There was significantly greater
growth of 5.6% in the lower priced segment (lowest 10% of
all rental offers), which had tended to fall during the second
half of the previous year. In the new-build segment, rents
grew by 3.8% year-on-year to their current level of €21.95/
sqm/month, which was less dynamic growth than in both
the previous year (4.8%) and the 5-year average (4.9% p.a.).
In an analysis of locations, the greatest rental price hikes
were in the South East, South and West submarkets, where
there were annual increases of between 9.2% and 5.0%.
Source: JLL, empirica systeme; Status: January 2021
Rental price bands for listed apartments Munich Development of rental prices
Source: JLL, empirica systeme; Status: January 2021 Source: JLL, empirica systeme, IDN immodaten; Status: January 2021
Residential City Profile | H2 2020 Munich 3Asking rental prices Munich
B 13
A9
Feldmoching-
Hasenbergl
B 11
Allach- Schwabing-
Untermenzing Freimann
Milbertshofen-
Moosach Am Hart
B 2r
A 99 A8
Aubing- Schwabing-
Lochhausen- Pasing- West
Langwied Obermenzing Neuhausen- Bogenhausen
Nymphenburg
B 2a
Maxvorstadt
B2
Altstadt- A 94
Laim Schwanthalerhöhe Lehel
Ludwigsvorstadt- Trudering-
Isarvorstadt Au- Berg am Laim Riem
A 96
Sendling- Haidhausen
Westpark Sendling K 12
Hadern
Obergiesing B 304
Ramersdorf-
Untergiesing- Perlach
B 995
Thalkirchen- Harlaching
Obersendling-
Forstenried-
Fürstenried-
Solln
0 5 10 km
OpenStreetMap-contributors
Rent Level
Average in €/sqm/month on postcode level
< 18.00 22.00 < 24.00 Water Area Industrial or
Traffic Area
18.00 < 20.00 >= 24.00 Green Area Other Area
20.00 < 22.00
Source: JLL, empirica systeme
Residential City Profile | H2 2020 Munich 4Purchase price growth continues in all segments
The growth in purchase prices for condominium apart-
ments in Munich continued in the second half of 2020.
Asking prices rose by 6.4% to their current level of €8,650/
sqm. The growth is slightly below both the previous year’s
Distribution of condo listings by price group level (8.5%) and the 5-year average (7.8% p.a.). There was
growth of 4.6% in the prime segment (top 10% of all pur-
chase offers) to the current level of €12,550/sqm, but this
is lower than the medium-term average (8.5% p.a.). None-
theless, prices in the absolute prime segment have settled
at above €20,000/sqm. This is a similar picture to the low-
er priced segment (€6,460/sqm, or 7.0%) albeit at a higher
level. The 5-year average in this segment is 9.6% p.a. Mo-
mentum increased significantly in the new-build segment
(€9,750/sqm) where growth of 9.6% was above the 5-year
average of 7.6% p.a. In an analysis of locations, the most
significant price hikes were in the South, Mitte-North and
North submarkets, but there was at least some level of
growth in all areas.
Source: JLL, empirica systeme; Status: January 2021
Purchase price bands for condominiums Munich Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: January 2021 Source: JLL, empirica systeme, IDN immodaten; Status: January 2021
Residential City Profile | H2 2020 Munich 5Asking condominium prices Munich
B 13
A9
Feldmoching-
Hasenbergl
B 11
Allach- Schwabing-
Untermenzing Freimann
Milbertshofen-
Moosach Am Hart
B 2r
A 99 A8
Aubing- Schwabing-
Lochhausen- Pasing- West
Langwied Obermenzing Neuhausen- Bogenhausen
Nymphenburg
B 2a
Maxvorstadt
B2
Altstadt- A 94
Laim Schwanthalerhöhe Lehel
Ludwigsvorstadt- Trudering-
Isarvorstadt Au- Berg am Laim Riem
A 96
Sendling- Haidhausen
Westpark Sendling K 12
Hadern
Obergiesing B 304
Ramersdorf-
Untergiesing- Perlach
B 995
Thalkirchen- Harlaching
Obersendling-
Forstenried-
Fürstenried-
Solln
0 5 10 km
OpenStreetMap-contributors
Condominium price level
Average in €/sqm on postcode level
< 7,000 9,000 < 10,000 Water Area Industrial or
Traffic Area
7,000 < 8,000 >= 10,000 Green Area Other Area
8,000 < 9,000
Source: JLL, empirica systeme
Residential City Profile | H2 2020 Munich 6Contacts
Michael Bender Helen Lindner Ralf Kemper
Head of Residential Germany Head of Residential Development Head of Valuation & Transaction
Frankfurt Germany Advisory Germany
+49 (0) 69 2003 2333 Berlin Frankfurt
michael.bender@eu.jll.com +49 (0) 30 203980 703 +49 (0) 69 2003 1092
helen.lindner@eu.jll.com ralf.kemper@eu.jll.com
Helge Scheunemann Roman Heidrich Sebastian Grimm
Head of Research Germany Lead Director Valuation & Lead Director Valuation &
Hamburg Transaction Advisory Transaction Advisory
+49 (0) 40 350011 225 Berlin Frankfurt
helge.scheunemann@eu.jll.com +49 (0) 30 203980 106 +49 (0) 69 2003 1196
roman.heidrich@eu.jll.com sebastian.grimm@eu.jll.com
Klaus Platen
Team Leader Residential Investment
München
+49 (0) 89 290088 125
klaus.platen@eu.jll.com
Authors
Dr. Sören Gröbel Christian Giesemann
Director Research Team Leader Research
Berlin Berlin
+49 (0) 30 203980 151 +49 (0) 30 203980 201
soeren.groebel@eu.jll.com christian.giesemann@eu.jll.com
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