Real Estate Highlights August 2021

The standard land values determined every two years by the Munich Expert Committee are an important basis for the valuation of real estate and were published on 19.07.2021 as of 31.12.2020. The reported increase in standard ground values from 2018 to 2020 has averaged approximately 11% in Munich, with extremely different developments in the city districts. Schwabing and Harlaching were able to realize the greatest increase in value, at around 20%, while in Laim values surprisingly rose by only 5%.

This development does not coincide with our perception of a very dynamic market development over the past two years.

As one of the leading brokers in Munich, we have experienced the development of land values in many areas significantly more dynamic than the standard land values show. In the second half of 2020, mostly moderate price increases were observed, but since the beginning of 2021, the price development of land values has picked up again significantly.

According to our estimates, land prices have increased by approximately 25% to 30% across the board by June 30, 2021, relative to the 2018 standard land values.

The following map provides an indication of the average land values according to our market research for the areas shown:

It is interesting to note that the land values, some of which are relatively low, do help property owners from a tax point of view: Both when assessing the depreciation of buildings and when calculating the value of real estate within the scope of inheritance/gift tax, the tax office usually refers to the standard land values of the expert committee.