Munich's Real Estate Investment Turnover Projected to Hit €3.5 Billion by 2026

Munich's Real Estate Investment Surge in 2025

Munich's real estate market is witnessing a significant upswing, as investment turnover is expected to reach up to €3.5 billion in 2026. This surge is driven by stabilizing economic conditions and a renewed wave of investor interest, particularly in major transactions such as the sales of Oberpollinger and Corbinian properties. The recent acceleration in the market, particularly in Q4 2025, indicates growing confidence among investors. According to German Real Estate Market experts, the broader German market is entering a phase of stability, which bodes well for cities like Munich.

Stabilizing Interest Rates and Market Confidence

Interest rates, which have been a significant factor in the real estate sector, are stabilizing, providing a more predictable environment for investors. According to Cushman & Wakefield, the German property investment market is in recovery, with transaction volumes forecasted to grow up to €25-30 billion in 2026. The renewed confidence is largely due to attractive risk premiums and stable interest rates, which have encouraged both domestic and foreign investors. In 2025, domestic investors contributed 53% of total investments, showcasing strong local confidence.

Impact of Green Building Trends

The emphasis on green-certified properties is reshaping Munich's real estate landscape. By mid-2024, Munich had experienced a 122% growth in green-certified space, significantly increasing its environmental credentials. This trend is expected to continue in 2026, as stricter environmental standards become a key focus for investors and developers, according to Investropa. The demand for high energy efficiency properties is rising, highlighting the growing importance of sustainable development in the city's real estate market.

Low Vacancy Rates and High Demand

Munich is experiencing persistent high demand and low vacancy rates, which are critical factors in its booming real estate sector. The city's population is expected to grow by 5% by 2025, further amplifying the demand for both residential and commercial properties. As reported by piHub, residential prices rose by 3.0% in 2025, with a projected increase of 3.5% in 2026. This consistent price growth underscores the robust demand in Munich's housing market.

Large Transactions Reflect Market Confidence

Significant transactions, such as the sales of Oberpollinger and Corbinian properties, signal growing market confidence. These high-profile sales reflect the city's attractive investment landscape and the readiness of large investors to engage in substantial acquisitions. Munich's luxury real estate sector has consistently seen price growth, with condominium prices rising significantly from €3,428 per square meter in 2012 to €9,187 at the beginning of 2022, as highlighted by Investropa. Such trends are likely to continue, driven by international interest and economic stability.

Future Implications for Munich's Real Estate Market

The projected growth in Munich's real estate investment turnover to €3.5 billion by 2026 has several future implications. It indicates a robust market recovery, enhanced by stabilizing economic conditions and strategic investments in sustainable properties. As Germany maintains its position as Europe's most stable real estate market, Munich stands out as a key player that continues to attract both domestic and international investors. RealEstateAbroad.com analysis suggests that the city's focus on sustainability and high demand for residential properties will further solidify its standing as a leading real estate market in Europe.

• Focus on green-certified buildings to align with environmental trends.
• Leverage stabilizing interest rates for strategic investments.
• Monitor demographic growth to anticipate future demand spikes.