Munich Market Report Q1/2026

Introduction

At the start of 2026, the Munich residential property market presents itself in an environment characterised by stabilised price indices and continued elevated financing costs. This report puts the current figures for Munich into context alongside the relevant framework data from Bavaria and Germany. The analysis is based on the reported indices and values; the differing reference dates of the respective sources should be taken into account when interpreting them.

Price development in Munich

The indices published by the vdp (base 2022=100) indicate a price level for the Munich market that lies below the starting value of the year 2022. The overall residential index stands at 98.40, while the capital value index for multi-family houses, at 99.30, nearly reaches the level of the base year. The indices for condominiums (96.20) and for owner-occupied residential property overall (95.30) are markedly further below the 100 mark. This reveals a differentiated development within the Munich market: the capital value of multi-family houses is closer to the starting level than the segment of owner-occupied residential property (as of Q1 2026 respectively).

Financing Environment and Construction Costs

Financing conditions remain a determining factor: according to the ECB, the interest rate for residential building loans stands at 3.75% p.a. (as of Q1 2026). On the cost side, the construction price index for residential buildings in Germany stands at 137.00 (as of Q1 2026). In addition, the purchase price for building land in Bavaria is reported at EUR 248.84/m² (as of Q4 2024), whereby the older reference date should be noted.

Nationwide and Bavarian reference figures

For Germany, the house price index of the Federal Statistical Office (Statistisches Bundesamt) stands at 100.50 (as of Q1 2026). Further reference series confirm the price level from different methodological perspectives: the Eurostat house price index (2015=100) stands at 153.40 (as of Q1 2026), the BIS index (2010=100) at 180.10 (as of Q4 2025). The index of net cold rents in Bavaria reaches 112.60 (as of Q1 2026).

Supply and Stock

In terms of new construction activity, Bavaria recorded 46,190 completed residential units as well as 52,945 building permits (both as of Q4 2025). The housing stock in Bavaria amounts to 6,620,821 units (as of Q4 2024). The number of permits thus exceeds completions, indicating a continued construction pipeline.

Conclusion

At the start of 2026, the Munich residential real estate market shows a price picture below the base year 2022, with relative stability in the multi-family housing segment compared to weaker figures for owner-occupied residential property. The elevated financing level of 3.75% as well as the persistently high construction costs shape the underlying conditions. On the supply side, the fact that approvals in Bavaria exceed completions points to continued construction activity. Due to the inconsistent reporting dates and the absence of quarterly changes, the figures cited should be understood as a snapshot in time.

Note: This report serves for factual classification and does not constitute an investment recommendation or a market value appraisal.

Key figures & sources