Construction activity in Munich to remain insufficient during the coming decade
According to official figures, 36,000 new residential units were completed in
Munich between 2011 and 2015. At the beginning of 2018, the city’s internet site
did not yet contain a residential market report for 2016/17. According to
bulwiengesa, 7,400 new apartments were completed in 2016, i.e. Not many
more than in the preceding years. And construction activity is unlikely to have
accelerated much in 2017 either.
The city administration intended to build 7,000
residential units each year until 2016 and has raised this target to 8,500 for the
period from 2017 to 2021. This means that a total of almost 52,000 residential
units were completed between 2011 and 2017. This is equivalent to residential
space for slightly more than 100,000 people. However, Munich’s population
increased from 1.36 million (per the 2011 census) to 1.55 million in 2016 before
declining slightly in 2017. According to official statistics, 1.53 million people lived
in Munich in September 2017 (latest available figure). Some people may have
moved because rents rose too strongly. However, it is likely that the decline is
simply due to a well-known statistical effect stemming from the registration of
foreigners. The total number of foreigners has declined, and they are often not
fully captured by the official statistics because they tend to move comparatively
often.
Based on these official figures, Munich’s population has grown by c.
180,000 inhabitants since 2011. This means that, based on only the number of
people who have recently moved to Munich, there is a shortage of almost
40,000 residential units.
EU Forecast
euf:ba.18.j:151/nws-01