Munich housing prices - where are they going?

We will be moving to Munich area pretty soon, and are evaluating the option of buying a house to live in...but a key factor that concerns us is that a real estate bubble is ready to burst or at least to deflate...any input from those already there?

i never knew there was a 'real estate bubble' here, nevermind one that would burst ... i almost bought an apartment last year in the south of Munich but due to the inflexible finance offers and other complex factors (converted loft without cellar space, overpriced parking lot, minimum 10 year commitment, etc), i backed out at the last minute...

if you're new to Germany and Munich, i suggest surfing the net for some basic advice ..bear in mind that Munich is the most expensive city:

Real Estate Germany

Interesting Deutsche Bank Report (PDF file)

i haven't given up ..and may buy-to-rent for tax reasons
my two cents...

From what I know...House prices are pretty stable here. Can't see them dropping much at all...There still is a demand for houses in and around Munich since interest rates are still relatively low at the moment.

munich hasn't benefited from the bubble that the rest of the planet has experienced over the past few years. People here don't tend to speculate in real estate the way the rest of us do, they buy it and keep it for the next seventeen thousand years. I think actually selling a house may be a crime.

By that logic, she is less likely to suffer when the bubble bursts, as it surely will.

Agree, there´s no bubble here. Prices are pretty much flat right now. I´ve read several articles stating how now is a good time to buy due to the low interest rates. There was a building boom several years ago and now there´s an oversupply of homes...this could be aggravated by the shrinking German population as well. All good news to home buyers IMO (unless you´re doing this for an investment in which case you may have to wait quite a while till prices start rising...) For an investment, I´d buy and rent it out. Otherwise, well, I´m looking as well!

I have bought 2 flats this year which I buy and rent out. #IF# you find the right apartment, and #IF# you can get the financing done at the correct level then buying in Munich is worthwhile if you are prepared to play the game over the long term. You need to own your place for at least 10yrs for the tax treatment to be as favourable as it can be.
The Bund Future (10yr German bond Future contract off which 10yr mortgages are priced) is pretty much at an all time high, meaning rates are at an all time low, but you have a big difference depending on who yaou finance with and what type of financing you choose (Bausparer, Repayment rate, special paydown rights etc). It is common in Germany to split your financing for a place into 2 tranches of 5yr and 10yr and to look to pay off a lot of the 5yr block when the term runs out.
For the first time in Munich it is just about possible to buy a place, finance it close to 100% and rent it out to cover costs. I myself do not live in the places I own as for tax reasons it is better to buy to rent. When you can finance a place like this it implies either Prices are too low, mortgage rates are too low, or rents are too expensive. Rents in Munich have come down in the past couple of years and the reports I have read do not expect this to continue. The property prices have also reduced slightly, but there was never a bubble to speak of in Munich so a House price collapse is unlikely.

Hope that helps you make up your mind.

Nath

Buy a house and not an apartment. There was an apartment bubble, but it burst last year and now they are getting more reasonable for renting. They still are horrible for buying unless you are in the upper price ranges.