Average rent price of residential property in Germany 2012-2022, by city

In 2021, the average rent in Munich was approximately 18 euros per square meter. This was an increase from the 17.3 euros reached in the previous year. But how does renting compare to buying? According to the house price to rent ratio, house prices in Germany have risen faster than rents in recent years, making renting much more affordable than buying.

Affordability of housing

In 2021, Germany ranked sixth countries with house price to income ratio of 133.4. The indicator compares the affordability of housing across OECD countries and is calculated as the nominal house prices divided by nominal disposable income per head with 2015 chosen as a base year. An index value of 133 means that the house price growth has surpassed income growth by 33 percent since 2015.

Housing in Munich

Just as with renting, Munich was the most expensive city for newly built apartments. In the first quarter of 2022, the cost per square meter in Munich was almost 3,000 euros higher than in the runner-up city Frankfurt.