Munich – Bavaria’s Royal City

Much of overseas property investment in Germany is geared to Berlin or Frankfurt, but Munich can offer a superior quality of life.

Berlin might be fashionable and Frankfurt the financial capital of Germany, but if it is manicured parks, quiet streets, discreet baroque palaces, and profusion of excellent restaurants you are looking for, then Munich is the place for you.

In addition, close proximity to the Alps – around 45 minutes by car – makes Munich the popular choice for the skiing fraternity.

Originally a favourite of Bavarian kings, who spent summers in the Nymphenburg Palace, Munich has kept its charm with a lack of tower blocks making sure that the city does not seem too urbanised.

However, the lack of high-rise living means that Munich comes at a price.

From 2011 to 2016 just 45,000 properties were built, enough to house around 90,000 people. But in the same period the city population rose by over 200,000 according to a report by Deutsche Bank.

The report went on to say: ‘The vacancy rate tends to hover around the zero mark. Munich, Germany’s most expensive city, has seen property prices more than double in the current cycle, with further increases expected in the coming years.’

This lack of available property in a city of 1.5 million means that overseas property investors would have to move fast to secure their dream home.

Director of the real estate agency Engel & Völkers München GmbH, Constantin von Preysing, said: It’s a very tight market. It’s not like you have a wide variety of houses to choose from – especially in the city centre, you have to jump on whatever comes on the market.’

The three most sought after areas in the centre of Munich are Nymphenburg in the west, surrounding the Nymphenburg Palace. Bogenhausen, a neighborhood east of the sprawling English Garden; and Herzogpark, a narrow enclave nestled between the two.

Herzogpark, with newer buildings offering more amenities, is where the ‘beautiful people’ tend to live. Where as Alt-Bogenhausen offers some beautiful Jugendstil [art nouveau] houses.

Both areas are crucially close to the A8, the highway that leads from Munich to fashionable ski areas in Austria and Northern Italy.

With the exception of Alt-Bogenhausen – where there are a small number of lovely town houses and villas, the majority of city centre properties are unsurprisingly apartments.

However, many Munich apartments were built either in the gracious proportions of the late 19th or early 20th centuries, or with large floor plans popular in the 1960s. So proportions are generous, with high ceilings and large windows giving an airy feeling of space.

Further outside the city centre, in the Grünwald, the properties are much larger and much greener, with walled gardens common.

Property prices in Munich can vary greatly depending on area, ranging from around €8,500 per square metre for buildings that may need some updating or renovation, to around €20,000 per square metre for high-end properties.

Property in Munich is not cheap by German standards, but compared to London investors can get a lot for their money, and with skiing on the doorstep.