Munich

Munich is Germany's most expensive city and its strongest property market on a fundamentals basis. The Bavarian capital combines blue-chip corporate employers (BMW, Siemens, Allianz, MunichRe), Germany's lowest unemployment, and a constrained land supply hemmed in by Alpine geography. The result is a market where average residential prices have nearly tripled since 2010 and gross yields have compressed below 3% in central districts. Prices in core neighborhoods like Altstadt-Lehel, Maxvorstadt and Schwabing range from EUR 9,500 to EUR 18,000 per square metre. Outer ring districts offer EUR 6,500-9,000 per sqm. Rental yields run 2.8-3.5% gross -- the lowest in Germany -- but with the strongest rental demand and the most defensive tenant base (professionals on Bavarian salaries are roughly 20% above the German average). For international buyers, Munich is a pure capital-preservation play with currency-hedged Eurozone safety and an A+ tenant pool. Yield-focused investors should look elsewhere; long-term wealth-protection buyers consistently rank Munich as a top-3 European destination alongside Zurich and Geneva.