The news is repeating every three months, rents in Munich continue their rise. According to a report by the Immobilienverband Deutschland Süd (Real estate Association of Germany South) published yesterday, July 6, 2016 for the spring 2016, rents in Munich are up again. Rent for a newly built apartment in Munich now costs an average €17 per square meter, while a square meter in an existing building now costs an average €14.90 in average. This represents a rise of 1.4 per cent compared to rent prices in autumn 2015. The average rent in Germany for existing apartments is currently an average €10.80, sueddeutsche.de reports today.
The main reason for the continuous rise of apartment rental prices is that more and more people are moving into the Bavarian capital, as we reported on Tuesday, and that there are not sufficient new apartments being built. The conclusions in the new report by the by Immobilienverband Deutschland Süd (IVD) are only based on newly closed rental contracts and on data obtained from real estate agencies, developers and the like. Another interesting fact published in the new report is that rents in the Bavarian capital have risen some 50 per cent over the course of the past 10 years.
People living in Munich have to spend an average of 28 per cent of their income on rent. The percentage is 4 per cent lower in other Bavarian cities, such as Regensburg and Augsburg.