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Germany’s Home Prices Edge Higher, With Munich in a Class of Its Own

A modest rebound hides steep regional gaps.

Overview

  • The Postbank Wohnatlas 2026, compiled by HWWI, reports 2025 home prices rose 2.8% on average and about 0.6% after inflation, the first real uptick since 2021.
  • Munich remains the country’s most expensive condo market with an average above €9,000 per square metre, while nearby Miesbach (€7,689), the Munich district (€6,865) and Starnberg (€6,681) also rank among the priciest areas.
  • The atlas shows sharp regional swings, including increases above 40% in some places, where thin local data can magnify short‑term moves.
  • Media coverage in Munich highlighted an outlier listing near Johannisplatz at nearly €1 million for 30 square metres, or about €33,000 per square metre, and an expert said rents would not cover such a purchase with typical new‑builds closer to €10,000–€15,000 per square metre.
  • Rental data underscore the split within Bavaria, with Munich averaging €20.44 per square metre versus €12.79 in Augsburg, a gap tied to demand and commuter pull into the capital.