Munich housing market stalls despite new construction law and rising demand
A new IVD analysis shows that Munich’s housing construction remains weak, with falling land prices and stable but high purchase prices for apartments.
The IVD’s latest report, presented by market analyst Stephan Kippes, indicates that Munich’s construction sector is still hampered despite the 2025 legal reforms intended to speed up approvals. Land values for apartment blocks have fallen to roughly 2,700 euros per square metre, while the price of a well-located existing apartment remains near 7,750 euros per square metre, unchanged for two years after peaking at 9,500 euros in 2022.
A detached house now costs about 1.34 million euros, and a new apartment sells for roughly 9,900 euros per square metre. Only 4,324 new apartments were completed last year, a significant drop from the decade-long average, reflecting higher financing costs and construction expenses. Moreover, more than 34,000 approved units remain unfinished, creating a surplus of vacant building sites. Experts warn that the anticipated release of homes from the aging Baby-Boomer generation will not quickly alleviate Munich’s shortage.
Why it matters
Munich’s housing shortage persists, affecting affordability and city growth.
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