Munich: Families flee to the surrounding area – where living is still affordable!

Munich: Families flee to the surrounding area – where living is still affordable!

The search for a suitable home in Munich is increasingly becoming an almost impossible undertaking. This is shown by a current study commissioned by Sparda Bank entitled “Living in Germany 2025”. A look at the numbers reveals that home ownership in the Bavarian capital is out of reach for many families. At a price of 360,000 euros you get just 43 square meters in Munich. In the Munich area, however, the situation looks friendlier: in Dachau it is 61 square meters, in Freising 75 and in Erding even 76 square meters for the same price. This makes many families consider moving to the surrounding area, where property prices are still affordable. Many districts such as Landsberg, Weilheim-Schongau and Neuburg-Schrobenhausen are currently accepting many newcomers.

The situation is made even worse by a dramatic decoupling of income and property prices in Munich and Upper Bavaria. While purchase prices in Mühldorf am Inn have risen by 135% since 2012, other regions such as Rosenheim (127%) and Miesbach (126%) are also showing worrying developments. A look at the average prices in Munich makes the situation clear: apartments here cost an average of around 8,000 euros per square meter, while detached single-family homes cost around 11,950 euros per square meter. The Glaser Immobilienberatung notes that despite an 11% decline in apartment prices since the beginning of 2023, invisible pressure on the market continues.

Commuter pressure is growing

With around 462,000 daily commuters, Munich has the largest catchment area in Germany. But this high number of commuters brings with it numerous challenges. Traffic is becoming increasingly dense and many residents are demanding improvements to the transport infrastructure. It remains to be seen whether the city can meet its changing requirements.

Another problem is the lack of construction activity in the region. Although there are calls for reforms to combat the housing shortage, such as the real estate transfer tax reform or the use of serial construction, concrete progress is usually difficult to recognize.

Forecasts for the future

According to forecasts, the future of real estate prices looks promising. Prices in Mühldorf am Inn could increase by 8% by 2040, while other districts could increase between 5% and 7%. An increase is to be expected here, which underlines the need for compromises when choosing location, size or commute. Because one thing is clear: buying an apartment in the greater Munich area is increasingly becoming a game of chance, where the chances also depend on personal flexibility.

For many families, moving to the surrounding area is the only way to own their own home. While prices in Munich remain at a high level, the surrounding area may still offer a bargain or two - you just have to know where to look. The question remains: Where is the urgently needed construction offensive to relieve the strained market?