Munich’s real estate industry remains one of the most competitive in Germany. One of the most significant shifts in Munich’s housing market is the increasing size of down payments. On average, buyers now put down 20% of the property’s purchase price. This trend has been driven by several factors, including fluctuating interest rates in 2023 and 2024, which pushed buyers to secure better mortgage terms and avoid private mortgage insurance. With a market characterized by high demand and limited availability, larger down payments help buyers stand out in bidding wars. Additionally, improved economic conditions and higher household savings have made it more feasible for buyers to commit to a larger initial investment. For those who are not looking to buy, renting in Munich comes at a premium. A two-bedroom apartment now costs between €1,800 and €2,500 per month, with prices varying significantly by district. Areas like Schwabing West and Maxvorstadt command higher rents due to their central locations and desirable amenities. Similarly, one-bedroom apartments range from €1,080 to €1,700 per month, with location playing a key role in pricing. The imbalance between supply and demand keeps rental costs high, making Munich one of the most expensive cities for tenants in Germany. Another financial consideration for Munich households is the increasing cost of energy. In 2025, the average annual energy cost for a household is estimated at €1,200. With electricity prices in Germany reaching approximately 26.64 cents per kilowatt-hour (kWh), households using around 5,000 kWh annually face significant energy bills. Looking ahead, Munich’s real estate industry is expected to remain competitive. With ongoing demand for both rental and purchased properties, prices are unlikely to decrease significantly in the near term. Buyers will continue leveraging larger down payments to secure deals, while renters will need to navigate high costs in prime neighborhoods.