Munich real estate market — prices, rental yield and trend
- Average price: $9,006 / m²
- Gross rental yield: 3.23%
- 12-month price change (USD): -2.44%
- Net rental yield: 2.44%
- Transaction cost: 12.3%
- Price basis: local-market average
Residential property in Munich averages $9,006 per square metre. In dollar terms the market has barely moved over the last twelve months (-2.4%). That makes it the 10th most expensive of the 131 markets in the set.
What a buyer pays in Munich
The $9,006 figure is a local-market average across all residential property types: a flat in a prime district sits well above it, an older unit on the edge of the market well below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 12.3% of the price here. On a 100 m² apartment at the average price that is roughly $110,774 on top of the $900,600 purchase price. That is above the 9.5% median across the set — the entry cost is part of the investment case here. Against the Germany national average of $3,066, Munich carries a 193.7% premium — the gap between this market and the country as a whole. Among the other Germany markets we track, Berlin at $5,612 is 60.5% cheaper.
What it earns
A square metre lets for about $24.3 a month. Against a purchase price of $9,006 per square metre that is 3.2% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 137th of 151 markets by gross yield. Rental income is taxed at 21.8–26.9% — the rate is not a single number here. That is the difference between 2.4% and 2.5% net on the same property. The 2.4% net figure we publish uses 24.4%.
How the tax works. Progressive under EStG § 32a at the 2026 tariff: for a non-resident the taxable base is increased by the basic allowance (§ 50(1) sentence 2 — the exception for employment income does not cover rent), there is no flat expense allowance and no solidarity surcharge, which gives 22–27% across typical rent levels. Building depreciation (2–3% a year) is not included because it depends on the property's value, so the real burden is noticeably lower. Source: dejure.org / EStG § 50.
Who can buy in Munich
Freehold, no restrictions. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.
How this figure is built
The price figure for Munich is built from asking prices from listings. It was last refreshed on 2026-10-15. We rate our confidence in this market’s data medium: the series is usable, but thinner or less current than our best-covered markets. We recompute every market the same way, which is what lets Munich be compared with a country average or another city.
Sources: immowelt sale · immowelt.de · api.frankfurter.dev (2026-10-15). Snapshot: 2026-10-15.
Latest Munich market analysis
- Germany rents up 1.9% in September 2026, below 3.3% inflation — 2026-10-15
- Germany new residential construction prices up 5.5% in August 2026 — 2026-10-09
- Housing Benefit in Germany Reached 1.3 Million Households at the End of 2025 — 2026-09-27
- German Construction Orders Fell 9.2% in July 2026 While Site Turnover Kept Rising — 2026-09-26
- German States Criticise the 2027 Housing Benefit Reform That Halves the Heating Allowance — 2026-09-25
- German House Prices Rose Just 0.6% in the Second Quarter as City and Country Pulled Apart — 2026-09-24
- Germany Approved 148,800 Homes in Seven Months, but July's Gain Shrank to 1.9% — 2026-09-19
- German housing ancillary costs rise 3.1% as utility arrears fall to 4.6% of the population — 2026-09-15
- German Housing Approvals Rose 15.1% in the First Half, the Strongest Since 2016 — 2026-08-20
- German Residential Prices Rose 1.9% in Q2 as Offices Kept Falling — 2026-08-11