In the past decade, housing prices in Munich have doubled making it the most expensive place to buy a home in Germany. This Bavarian city has prices reaching €35,000 per sqm in some exclusive developments. The average in Munich is €7,630, far above Germany’s nationwide average of €2,993 per sqm.
At the same, Munich has come to be seen as Europe’s “biggest bubble risk”, according to the Financial Times. It writes that after the financial crisis in 2008, housing prices have taken off due to high levels of immigration, low interest rates and low unemployment. Moreover, Munich has been growing at a rate of 6 percent per annum since 2012. “[The price growth] is based on real demand from people coming here to work and live, rather than speculation,” said Michel Reiss of Sotheby’s International Realty.
