Rents Continue to Rise

The cost of a square meter of rental property in Munich is on average between 12.50 and 13.80 euro. The increase is only marginal but this is little consolation.

Munich - The bad news is that rents continue to rise - and have now reached historic highs. The good news is that the cost increase is only marginal. According to the real estate association for southern Germany IVD, Munich, rents rose in the spring of 2011 in comparison to autumn 2010: Semi-detached houses (existing): increased of 0.5 percent. They cost an average of € 1880, € 2220 if new. Mid-terrace houses (inventory) rose by 2.5 percent. 

In the spring, a mid-terrace house (inventory) costs € 1620, a new building costs 1710 € per month. The value to be paid in Munich for older houses in good state is on average i13.50 € / m², inventory rents at 12.50 € / m², new apartments cost € 13.80 / m². In Ingolstadt, Bavaria, thanks to the lowest unemployment rate, the influx of new people continues unabated.

The result is a sharp rise in demand for housing. The rents for apartments in older buildings are currently at 8 € / sqm (+16.1%), for existing apartments at € 8.80 (+5.4%), for new apartments at € 9.30 (+8.8%). Augsburg: The rents for apartments in older buildings increased compared to the fall of 2010 of 5.3% to a total of 7 € / m², and newly-built apartments increased by +1, 3% to € 7.90 / m².

The population continues to increase: the most significant increases are expected in Munich (+8.4%), Ingolstadt, (+7.6%) and Regensburg (+6.6%). The popular and growing areas in Munich are Erding (+12.5%), the district of Munich (+10.7%), the district of Freising (+9.8%) and Ebersberg (+9.3%).

Utility costs continues also to rise: in the last 5-years prices for electricity and gas rose by +38.4%, prices for water supply and sanitation by +15.4% to +8.5%.