Apartment buildings in Munich Q3/2026: what investors need to know now

Is an apartment building in Munich still worth it? This video assesses the Munich market for apartment buildings after the third quarter of 2026 for investors in about four minutes – with a time series of the capitalisation rate, a leverage example and a map of rents by city district.

What you will learn in the video

• Repricing: capitalisation rate for apartment buildings from approx. 1.4 % (H1 2022) to approx. 2.8 % (H1 2026), gross income multiplier from approx. 49x to approx. 30x.
• Yield versus cost of capital: prime residential yield 3.6 %, German government bond 3.63 % (29 Sept 2026), average mortgage rate in September 4.16 %, early October approx. 4.5 %.
• Negative leverage: example: 2.8 % without a loan, approx. 0.7 % return on equity with a 60 % loan at 4.2 %.
• Locations: asking rents 2025 by city district: city centre from 24 €/m², outskirts partly below 21 €/m².
• Rental potential: rent index 15.38 €/m² compared with an asking rent of 22.93 €/m² – limited by the rent cap and the capping limit.
• Regulation: 36 conservation areas, Building Modernisation Act, CO2 cost sharing from 2028, lower land prices.

Data sources (as of 9 October 2026)

• Munich valuation committee (Gutachterausschuss) – half-year report 2026
• Munich valuation committee – half-year report 2022
• Munich valuation committee – spring ticker 2026
• Housing market barometer 2025 – City of Munich
• Munich rent index 2025
• Residential investment market Q3/2026 – Haufe, BNP Paribas RE
• Deutsche Bundesbank – yields 29 Sept 2026
• Baufi24 interest rate commentary 10/2026
• Conservation areas Munich
• City districts – Open Data München (DL-DE BY 2.0)
• Section 556d BGB – rent cap
• § 172 BauGB – conservation statute
• § 21 ImmoWertV – capitalisation rates

This video is an information and promotional video of the real estate appraisal office STRECKEL for its own services. It provides general information, is not investment, legal or tax advice and does not replace an appraisal of your property.

Legal notice – no investment advice

This video is for general information on property markets only. It is not investment advice or investment brokerage (§ 1(1a) KWG, § 2(8) WpHG, §§ 34f, 34h GewO), not legal or tax advice and not a solicitation to buy or sell. Personal circumstances are not taken into account. No guarantee; past developments are not a reliable indicator of future ones. Liability for investment decisions based on this video is excluded to the extent permitted by law; liability for intent and gross negligence and for injury to life, body or health remains unaffected.