The quarterly update on the Munich market: mortgage rates above 4%, more purchase contracts, robust apartment prices and an office market with record rents – put into context for buyers, sellers and owners.
The Munich market is heading into autumn with two opposing signals: financing has become noticeably more expensive since the summer, while transactions and prices continue to rise moderately. Anyone buying or selling now should understand both sides.
Since July, mortgage rates have risen by around 0.8 percentage points. The drivers are higher yields on ten-year German government bonds and persistent inflation concerns following higher energy prices. In October, for the first time, no common fixed-rate term is below 4%.
For context: a rate increase of 0.3 percentage points adds around €25 per month to every €100,000 borrowed. For a typical Munich loan of €600,000, that is about €150 a month – from the September increase alone.
The Munich valuation board (Gutachterausschuss) confirms a noticeable stabilisation for the first half of 2026. The basis is not listings but actually notarised purchase contracts – the most reliable data source for the Munich market.
New builds show a clear differentiation by location: prices rose in good locations and eased slightly in average ones. Existing apartments remained price-stable with only minor fluctuations. Asking prices also edged up again in the third quarter.
Important for context: asking prices from portals and purchase prices from notarial contracts differ. For valuing a specific property, location, condition and energy class matter – not the city average.
The office leasing market achieved its strongest first half since 2022 – driven by large deals from tech, industry and AI-related sectors. Demand is concentrated on modern, central space; older properties in peripheral locations are under pressure to adapt. In the third quarter, too, Germany's five largest office markets grew by around 18% combined.
Rising rates curb purchasing power, but not demand – because supply in Munich remains scarce. This results in different priorities for each role in the fourth quarter.
In autumn 2026, Munich remains a stable market with a slight upward trend. Higher rates are no reason to panic, but they shift negotiating positions: good locations and energy-efficient properties remain in demand, while prices for properties in need of refurbishment are negotiated harder.
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