Munich's condominium market showed a noticeable revitalisation at the start of the year. The number of purchase contracts increased by almost 8.8 percent compared to the previous year, totalling 1,485. Concurrently, sales volume rose by 6 percent, reaching EUR 792 million. These figures are the result of the latest evaluations by the Munich expert committee, of which Thomas Aigner, Managing Director of Aigner Immobilien GmbH, is a member.
The analysis identifies a clear division in the market, with its causes primarily lying in the prevailing interest rate environment. The distribution of purchase contracts and sales varies markedly between individual price segments, indicating different market dynamics within the city.
Segmented Market Development due to Interest Rate Environment
In the condominium segment under EUR 300,000, there was a substantial 23 percent increase in contract numbers, while sales in this segment rose by only 9 percent. The price segment between EUR 300,000 and under EUR 600,000 showed stable growth with approximately 6 percent more purchases and an 8 percent increase in sales. Increases were also recorded in the upper class, defined by flats priced from EUR 900,000: 16 percent in transactions and 17 percent in sales volume.
The declining figures in the price segment of EUR 600,000 to EUR 900,000 are striking. Here, the number of purchase contracts fell by 9 percent and sales by 8 percent. Thomas Aigner attributes this development to the effects of increased financing costs, which particularly burden the traditional buyer demographic in this middle price segment. This phenomenon reflects a societal trend whereby the middle class is increasingly exercising financial restraint or shifting towards more affordable properties. Increased interest rates act as a significant impediment to purchase decisions in this area.
Upper Class Remains Resilient
Conversely, development in the top segment of condominiums, i.e. those from EUR 900,000, appears largely independent of increased interest rates. Here, higher financing costs play a lesser role in purchasing decisions. This is also confirmed by the record sales predicted by the expert committee for 2025: one buyer acquired a new-build luxury flat of approximately 515 square metres for EUR 26.5 million, and an existing flat of around 345 square metres changed hands for EUR 17.4 million. These transactions demonstrate the continued attractiveness and price stability of high-value properties in the Munich market.
