The current real estate report by Mr. Lodge GmbH for Munich indicates that the market, formerly strongly dominated by supply and demand, is now significantly shaped by regulatory measures. This has varying effects on the market segments for buyers and tenants. While owner-occupiers benefit from an expanded offering, the rental segment faces a potential further reduction in available housing.
Current conditions for prospective buyers have improved. The supply of properties in Munich and the surrounding communities has increased, and sellers are more frequently willing to negotiate prices, even for already reduced quotations. Norbert Verbücheln, Managing Director of Mr. Lodge, stated that prospective buyers now find significantly better underlying conditions, and the larger supply allows for a more careful selection process and new negotiation opportunities.
Capital Investors Withdraw, Energy Quality Becomes Value-Determining
The federal government's policy is leading to a decline in interest among capital investors, whose focus is increasingly on attractive returns. Properties not subject to rent control, such as first occupancies from October 2014 or first rentals after comprehensive refurbishment, are gaining relevance for this group. Simultaneously, the energy quality of existing properties is becoming more prominent, influenced by financing conditions and funding opportunities. Targeted measures such as installing a heat pump can significantly improve energy efficiency, thereby positively influencing marketing opportunities and financing.
Sophie Merkel, Senior Financing Advisor at Interhyp AG, pointed out that good energy ratings can generate interest rate advantages of 0.10 to 0.20 percentage points for the entire financing, while poorer energy ratings do not yet result in interest surcharges. Jacqueline Sauren, Head of Property Sales at Mr. Lodge, added that existing properties with good energy performance achieve better marketing opportunities and offer greater value stability.
Furnished Accommodation: High Demand Amid Falling Supply
In the furnished accommodation sector, Mr. Lodge recorded a demand increase of over nine percent in the first half of 2026, driven by international skilled workers, companies, and project employees. Demand for 2-room flats rose to 34.3 percent of all placements, while the share of 1-room flats slightly decreased to 44.6 percent. The remaining approximately 20 percent accounted for 3- to 5-room flats and three percent for houses. Despite this high demand, a slight decline in supply is observed.
- —Prospective buyers benefit from a larger supply and improved negotiation opportunities.
- —Attractive purchasing opportunities for owner-occupiers are available.
- —Demand for furnished flats increased by over 9 percent in the first half of 2026.
- —The planned rent reform is already creating uncertainty before its implementation.
An independent survey by Mr. Lodge, as well as studies by PwC and Haus und Grund, indicate that many private landlords are considering withdrawing from the letting business due to planned legislative changes. Norbert Verbücheln predicted this could significantly reduce the supply of furnished flats in the coming months, with negative consequences for the housing markets in metropolitan areas. According to Mr. Lodge's assessment, the new legal framework will not only lead to less available housing but also to greater market fragmentation. Properties exempt from new regulations are gaining in importance, necessitating an early adaptation of letting strategies by owners.
