Published in September 2018 Munich - Residential City Profile - JLL
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Residential City Profile Munich Munich | 1st half of 2018 Published in September 2018
Housing market Munich
Ongoing excess demand foreseeable despite new-build der 5%, the supply of housing increased by just 3.5%. In
activity approaching official urban planning targets 2017, the number of building permits granted reached its
Munich recorded a population growth of just over 4% bet- highest level for the past 10 years, with Munich’s building
ween 2013 and 2017, mainly due to positive net migration. authorities approving the construction of around 13,500
The city gained more than 60,000 inhabitants during this apartments – double the number of building permits gran-
period. A comparison of household growth with the deve- ted in 2016. In its Housing in Munich VI housing policy ac-
lopment of housing supply indicates an increasing housing tion programme, the city recently revised its new construc-
shortage: while the number of households rose by just un- tion target to 8,500 apartments per annum, 2,000 of them
in the publicly-subsidised and price-controlled segment.
As early as 2017, an above-average number of new apart-
Housing supply and demand for ments of almost 8,300 units came onto the market and it
new buildings Munich seems likely that the city’s target can be reached by 2018.
So far, the city has met the high demand on the housing
market primarily by designating and releasing new building
land on the outskirts of the city, and by converting brown-
field sites. This is because large new building projects would
be difficult to achieve in the city centre due to the already
high building density. Compared to other large cities, Mu-
nich offers a wide range of planning instruments to promote
new construction and affordable housing. However, the
use of these instruments and the momentum in construc-
tion activity are likely to only partially ease tensions in the
housing market. Considering the forecasts for further popu-
lation and economic growth, and given the demand back-
log from recent years, the problem of excess demand is un-
likely to diminish over the coming years.
Source: destatis, BBSR housing forecast, Municipal statistical offices, JLL;
Status: July 2018.
Selected developments under constructions
Name Location Residential units Completion date
Quartier Paul-Gerhardt-Allee Pasing-Obermenzing approx. 2,400 2021
Stadtquartier Am Südpark Thalk.Obersendl.-Forsten-Fürstenr.-Solln approx. 1,440 2019
Stadtquartier DiamaltPark Allach-Untermenzing approx. 800 2020
Stadtteilentwicklung Prinz-Eugen-Kaserne Bogenhausen approx. 600 2020
Domagk-Quartier Funkkaserne Schwabing-Freimann approx. 590 2018
Source: JLL; Status: July 2018
Residential City Profile | H1 2018 Munich 2Stable but high rental levels in city centre locations
In the first half of 2018, the average asking rent for apart-
ments reached €19.25/sqm/month (+3% compared to
the first half of 2017). Compared to the same period last
year, the prime rent decreased by €0.10/sqm/month from
Distribution of rental listings by price group €30.00/sqm/month across the city. Conversely, the bottom
rental price segment recorded an increase of approximately
3.7% to reach €14.10/sqm/month. Analysed over a 12-month
period, expensive locations in the centre and north of the
city have observed stagnating asking rents, low growth rates
and declining rents. This is likely to be due to the expansion
of the housing supply in the comparatively inexpensive re-
sidential areas, which appeal to potential tenants as alter-
natives to high-priced locations. As a result, rents rose shar-
ply in the south, southwest and west of the city. Rents in
the West submarket increased by 7% in the bottom price
segment and 17% in the top segment, whereby the lowest
rental level across all price segments still exists in this sub-
market. Despite increased construction activities, the ave-
rage rent for new apartments remained stable at €20.00/
sqm/month in the first half of 2018.
Source: IDN immodaten, JLL; Status: July 2018
Rental price bands for listed apartments Munich Development of rental prices
Source: IDN immodaten, JLL; Status: July 2018 Source: IDN immodaten, JLL; Status: July 2018
Residential City Profile | H1 2018 Munich 3Asking rental prices Munich
ìA 92
ì
A9
ìA8
ìA 99
ì A 99
Feldmoching-
Hasenbergl
ìA 99 ì A9
ì A8 Milbertshofen-
Am Hart Schwabing- ì
A 99
Allach-
Freimann
Untermenzing
Moosach
ìA 99
Aubing- Schwabing-
Lochhausen- West
Langwied Neuhausen- Bogenhausen
ìA 99
Pasing-
Obermenzing
Nymphenburg
Maxvorstadt
Altstadt-
Laim Schwanthalerhöhe
Lehel ì A 94
Ludwigsvorstadt- Au-
Haidhausen Berg am Trudering-
ìA 96 Isarvorstadt Laim Riem
Sendling-
ìA 96 Hadern Westpark Sendling
Obergiesing Ramersdorf-
Untergiesing-
Perlach
Harlaching
Thalkirchen-Obersendling-
Forstenried-
Fürstenried-Solln ì A 99
ì A 95 ìA8
ì
A 995
0 5 10 Kilometers
ì
A 99
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, IDN Immodaten GmbH, Infas Geodaten GmbH
Residential City Profile | H1 2018 Munich 4High purchase price growth not only in the
high-priced submarkets
The average asking price for condominium apartments ac-
ross all price segments, locations and years of construction
is €7,250/sqm, an increase of almost 7% y-o-y. Prices in the
Distribution of condo listings by price group prime segment rose by just under 6.0%, while apartment
prices in the bottom price segment increased by around
3.0%. The sustained high demand for residential property
drove up purchase prices in all city districts without excep-
tion. The high-priced submarkets are also recording high
growth rates. Over €11,600/sqm can now be achieved in
the top price segment in the southern city centre. In the
first half of 2017, purchase prices here were 19% lower. At
the same time, potential buyers are also shifting their focus
to locations previously less in demand, and to older resi-
dential properties. This is reflected in above-average price
increases, especially for existing apartments built between
1961 and 1975. As a result, new apartments (built since 2013)
were being offered at a significantly lower price in the first
half of 2018 than in the first half of 2017. Especially in city
centre locations, purchase prices decreased by 10.0–13.0%
to €6,900-8,900/sqm.
Source: IDN immodaten, JLL; Status: July 2018
Purchase price bands for condominiums Munich Development of purchase prices for condominiums
Source: IDN immodaten, JLL; Status: July 2018 Source: IDN immodaten, JLL; Status: July 2018
Residential City Profile | H1 2018 Munich 5Asking condominium prices Munich
ìA 92
ì
A9
ìA8
ìA 99
ì A 99
Feldmoching-
Hasenbergl
ì
A 99 ì A9
ì A8 Milbertshofen-
Am Hart Schwabing- ì
A 99
Allach-
Freimann
Untermenzing
Moosach
ìA 99
Aubing- Schwabing-
Lochhausen- West
Langwied Neuhausen- Bogenhausen
ìA 99
Pasing-
Obermenzing
Nymphenburg
Maxvorstadt
Altstadt-
Laim Schwanthalerhöhe
Lehel ì A 94
Ludwigsvorstadt- Au-
Haidhausen Berg am Trudering-
ìA 96 Isarvorstadt Laim Riem
Sendling-
ìA 96 Hadern Westpark Sendling
Obergiesing Ramersdorf-
Untergiesing-
Perlach
Harlaching
Thalkirchen-Obersendling-
Forstenried-
Fürstenried-Solln ì A 99
ì A 95 ìA8
ì
A 995
0 5 10 Kilometers
ì
A 99
Condominium price level
Average in €/sqm on postcode level
< 6,000 8,000 < 9,000 Water Area Industrial or
Traffic Area
6,000 < 7,000 >= 9,000 Green Area Other Area
7,000 < 8,000
Source: JLL, IDN Immodaten GmbH, Infas Geodaten GmbH
Residential City Profile | H1 2018 Munich 6Contacts
Dr. Konstantin Kortmann Thomas Zabel Ralf Kemper
Head of Residential Investment Head of Residential Development Head of Valuation & Transaction
Germany Germany Advisory Germany
Frankfurt Berlin Frankfurt
tel +49 (0) 69 2003 1390 +49 (0) 30 886600 115 tel +49 (0) 69 2003 1092
konstantin.kortmann@eu.jll.com thomas.zabel@eu.jll.com ralf.kemper@eu.jll.com
Helge Scheunemann Roman Heidrich Sebastian Grimm
Head of Research Germany Team Leader Residential Valuation Team Leader Residential Valuation
Hamburg Advisory Berlin Advisory Frankfurt
+49 (0)40 350011 225 Berlin Frankfurt
helge.scheunemann@eu.jll.com tel +49 (0) 30 203980 106 tel +49 (0) 69 2003 1196
roman.heidrich@eu.jll.com sebastian.grimm@eu.jll.com
Author
Jirka Stachen
Research
Berlin
tel +49 (0) 30 203980 151
jirka.stachen@eu.jll.com
jll.de Information regarding JLL and our services
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