Munich, Germany’s most dynamic property market

Despite current challenges like evolving work environments, elevated construction and acquisition costs, and Germany's broader economic slowdown, the Rock Capital Group continues to rank Munich as Germany's most dynamic real estate market.

New office building Heaven

Peter G. Neumann, founder and managing partner of Rock Capital Group, highlighted several key indicators at Expo Real.
Munich's office market boasts an average annual turnover exceeding 700,000 m2. The vacancy rate in central Munich is remarkably low, under 3%, with average rents steadily climbing to over €30 per m2 within the Mittlerer Ring. Prime office rents in top locations have even surpassed €70 per m2, the highest in Germany. 
“These prime rents are not a warning sign, but rather an expression of the city's unbroken attractiveness," he stressed.
Munich is also a leader in the residential sector, with average purchase prices around €10,000 per m2. New builds in good inner-city locations often command over €20,000 per m2, with prices in absolute prime spots occasionally reaching €60,000 per m2. Strong demand, limited new construction, and the city's overall attractiveness ensure stable sales and allow for moderate price increases even in the current economic climate.
Neumann attributes Munich's real estate success to its global appeal as a city brand. He describes it as a lifestyle blending tradition, art, modernity, economic strength, recreational value, and a touch of sophistication, extending beyond its famous landmarks. This unique combination, along with its reputation for safety, cleanliness, and beauty, makes Munich a top choice for international tech firms and renowned companies seeking a prime location.
The Rock Capital Group is currently developing and leasing around 10,000 m2 of office space in and around the city, with further projects planned.