Empira Group Research: 7 Key Attributes Underscoring Munich's Appeal as a Real Estate Investment Location
1. Rapid Population Growth: Munich, the capital of Bavaria, is the third‐largest city in Germany with a population of 1,512,491, as of December 31, 2022. It ranks among the top 15 in the EU and the population is forecasted to increase to over 1.54 million residents by 2030, indicating a fertile market for real estate investments.
2. Educational Hub: The city is home to over 100,000 students, with more than 50,000 attending the Ludwig Maximilian University of Munich alone. This large student population supports a vibrant rental market and presents a steady demand for housing.
3. Tourism and Cultural Magnet: Munich's world‐famous Oktoberfest, diverse cultural offerings, and numerous attractions draw international tourists, enhancing the city's global appeal and supporting a dynamic shortterm rental market.
4. Exceptional Connectivity: With excellent infrastructure systems, including several major highways, numerous ICE train lines, plus Munich Airport – serving 37 million commercial passengers and offering flights to 219 destinations in 64 countries (as of 2023) – Munich is highly accessible and attractive for both domestic and international investors.
5. Economic Powerhouse: Hosting headquarters of five DAX‐listed companies (Allianz, BMW, MTU Aero Engines, MunichRE, and Siemens as of January 2024) and boasting the highest concentration of publicly traded companies in Germany, Munich's strong corporate presence fuels demand for commercial and residential real estate.
6. Research and Development Hub: More than 100 of the world's largest corporations operate at least one branch in Munich, alongside numerous research institutions, including the Fraunhofer and Max Planck Societies. This fosters an innovative environment and high demand for office and residential spaces.
7. High Economic and Living Standards: Munich showcases outstanding economic and labor market figures, with a GDP per capita of EUR 86,529 (compared to Germany's EUR 47,110) and a low unemployment rate of 4.3% in 2022. Its high purchasing power index of 133.2 and top rankings in national and international quality of life surveys underline Munich's status as a premier location for real estate investment.
➡ These points collectively underscore Munich's appeal as a robust and growing market for real estate investment, characterized by its economic strength, quality of life, and strategic importance as a hub for education, tourism, and business.
Sources: EMPIRA Research auf Basis von Bundesagentur für Arbeit; Flughafen München; MB Research; Mercer; Prognos AG - Prognos-Zukunftsatlas 2022; Stadt München; Thomas Daily, Statistische Ämter des Bundes und der Länder