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You have to be able to afford the city of Munich and the Bavarian south

With an area of more than 70,000 square kilometers, the Free State of Bavaria is not only the largest state in the Federal Republic, but its economy, which has been very successful for decades, and the numerous characteristic landscapes in various and well-preserved natural areas make Bavaria an extremely popular residential and vacation region for employees as well as guests and visitors. Analogous to this continuing attractiveness, however, one unfortunately also finds some of the highest real estate prices there in a nationwide comparison. The state capital of Munich, with its current population of almost 1.4 million, has been the most expensive city in Germany in this respect for some time now; between 2012 and 2013 alone, housing prices there rose by 9.9 percent. For apartments and houses in good to very good locations, almost 8,300 or over 9,500 euros per square meter are now being paid. But not only in the mondänen Munich, where the prices for building plots, free-hold apartments, single-family and row middle houses as well as double house halves doubled themselves since 2003 in each case more than, also in nearly all other Bavarian regions know the prices for dwelling for year and day only a rapid upward movement. Likewise double-digit percentage increases in real estate prices in the same period in the surrounding and south bordering administrative district of Upper Bavaria with its major centers Freising, Ingolstadt, Rosenheim, Garmisch-Partenkirchen and Traunstein. In the districts of Starnberg, Miesbach and Munich Land, between 500,000 and 600,000 euros are now being demanded and paid for a used, detached single-family house in a medium to preferred location.

In the Franconian north and at the borders there are still individual opportunities

In contrast, the real estate market in the northern and eastern parts of the state is comparatively more relaxed, for example in the administrative districts of Upper Franconia and Upper Palatinate on the border with Saxony, Thuringia and the neighboring Czech Republic. Buyers in the Upper Franconian districts of Wunsiedel and Hof, for example, can often find a single-family home for less than 200,000 euros. There, like also in the other bordernear districts as for instance Naila, Cham, Neumarkt, Neustadt at the Waldnaab, Schwandorf and Tirschenreuth can be made quite still affordable good bargains. The Bavarian Forest in the administrative district of Lower Bavaria also offers affordable real estate, despite the fact that some areas are heavily influenced by tourism. However, there are major regional differences: districts that are heavily dependent on tourism and/or highly industrialized, such as Passau, Freyung-Grafenau, Dingolfing-Landau, Landshut, Freising and Pfaffenhofen, generally have a higher price level than more rural districts such as Rottal-Inn and Regen. However, the entire region of southeastern Upper Bavaria, with such well-known excursion, winter sports and, in some cases, pilgrimage destinations as Altötting, Bad Aibling, Bad Reichenhall, Berchtesgaden, Freilassing, Waldkraiburg and Wasserburg am Inn, is generally considered to be rather expensive due to its high profile. This applies in a similar, if not stronger, way to the Allgäu and the Oberland in the Bavarian southwest, where cities and communities such as Bad Tölz, Garmisch-Partenkirchen, Murnau am Staffelsee, Tegernsee, Rottach-Egern, Bad Wiessee and Wolfratshausen or Füssen, Kaufbeuren, Kempten, Lindau, Marktoberdorf, Oberstdorf and Sonthofen sometimes even have international fame as ski resorts and vacation destinations.

The proximity of Munich, well-known universities and winter sports as price parameters

Further west, in the Bavarian part of Swabia around Augsburg, Donauwörth, Nördlingen and Schwabmünchen, the situation on the housing market is now also strongly determined by high demand and increasingly scarce supply. There, as incidentally in almost all of Bavaria, the "Munich effect" is now making itself felt; many commuters from the Bavarian metropolis live, for example, in or near Augsburg, which can be reached from Munich by car or train in just half an hour's travel time. In Lower Franconia and especially in Schweinfurt, the final withdrawal of the U.S. Army has brought movement to the real estate market, but there the sometimes rather favorable prices stand in the way of a slightly uncertain urban future. In the direction of Middle Franconia, the two districts of Erlangen-Höchstadt and Roth are currently showing strong demand for residential property, and there is also a great deal of momentum with many new construction projects on the Nuremberg real estate market, which continues to be in high demand. The situation is somewhat calmer in the city of Aschaffenburg, where larger condominiums in central and good locations are in demand and increasingly rare, but smaller 1 to 2 room apartments are quite numerous and affordable. On the whole, the development that can be observed more and more nationwide, according to which particularly attractive university towns and business metropolises are showing ever higher purchase prices, has particular validity in Bavaria. For example, the increase in Regensburg alone between 2008 and 2013 was a whopping 63 percent, and in Nuremberg's neighboring city of Fürth it was also a remarkable 54 percent.


Short facts Real estate market in Bavaria:

- In Bavaria, Munich is the expensive measure of all things when it comes to real estate and developments
- Upper Bavaria and the entire south of Bavaria are also generally high-priced
- Upper Franconia and Upper Palatinate hold opportunities in rural areas
- The Allgäu and the Oberland are in part well-known and therefore sought-after residential areas
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Bavarian Swabia benefits from its proximity to Munich and is becoming more expensive
- In Lower Franconia, opportunities for investors are seen in Schweinfurt
- Nuremberg and Fürth as twin cities are extremely sought after
- Bavaria's university cities show some of the highest price increases