Berlin vs. Munich – Comparing Rental Prices

There is obviously no doubt about Berlin being a beautiful and unique city. The endless variety of cultural offers, such as museums, theatres, cabarets, festivals, open-air events or huge concerts with international stars are just the beginning. Berlin reached lots of attention regarding the economy in the last couple years, e.g. in the Fashion Business. One of the reasons why the Mercedes-Benz Fashion Week is being held in Berlin, which attracts a high number of professional visitors every year to the Capital. Young, talented designers develop and present their own brands, form their own start-up company and therefore create new workplaces for the constantly growing economy.

As Berlin has become such a young and modern metropolis, it is especially attracting the younger generation, which forms it to an even more vibrant city. Due to great infrastructure, its various offer of several (international & national) kindergarten, as well as Berlin being known as the ‘greenest city’ of Germany, it is also perfectly made for families who value high-quality leisure time.

Comparing Berlin with Munich, it becomes obvious that both cities have a specific attractiveness towards each other. But, for example, referring to the cultural offer, Munich can definitely not keep up with Berlin. Munich, being part of Bavaria, presents itself much more traditional than the international city of Berlin.

Lack of qualified employees causes problems in urban centres

Rents are being raised since a couple years by now in the main urban areas of Germany. One reason for causing that could be the growing demand for creating qualified workplaces in the main areas, even with knowing, that there is a strong lack of affordable housing options. Therefore, the housing market is becoming more and more crowded, which leads to price raise in rents. In contrast to that, rents in Munich are so high, that it is an argument for the employee not to live in the bavarian metropolis. Very understandable, considering the fact that in the north of Germany one could rent out a complete house, including a garden, for the same price as a tiny two-bedroom apartment in Munich.

Even for the highly qualified employees with an above-average income, the level of renting price is just too high. A study of the International Chamber of Industry and Commerce of Munich indicates, that the lack of highly professional employees might have an even stronger influence in the future. Therefore, it is being said, that over 100.000 employees are already missing.

Munich is on top of the most expensive rents in Germany

On average, the square meter of one apartment in Munich is estimated by 14 € till 15 €. However, the average rental price in Munich is 20,64 € per square metre for an apartment with 30 square meters (state: 1/2015). In contrast, however, the average price in Germany is only 9,34 € per square metre.

Apartments for rent 1/2015

Source: http://www.wohnungsboerse.net/mietspiegel-Muenchen/2091

When taking a closer look on the development of the rental prices of the last 4 years, it becomes obvious that the prices for one 30 square metre apartment has grown from 15,31 € to 19,55 € (2011-2014), which is a jump of 4,24 €. In contrast, the German-wide data looks much better: In 2011 people had to pay 7,63 € per square meter for the similar apartment, the rent in 2014 was 8,62 €, with a difference of 0,99 €.

Comparison of  the rental prices in 2011-2014 

Source: http://www.wohnungsboerse.net/mietspiegel-Muenchen/2091

Specialists in Berlin earn less money, but they enjoy their lives more

Although, when specialists from Berlin earn less than in Munich, they have much more of their salary, as rental prices are still affordable for such a big city. Similarly, the living cost are also much lower than in Munich. According to the rent index of housing exchange, the average for one 30-square-meter apartment is 11,49 € (status: 1st quarter 2015).

Apartments for rent 1/2015

Source: http://www.wohnungsboerse.net/mietspiegel-Berlin/2825

The comparison of the rental prices are showing, that during 2011-204, in Berlin as well as in larger areas of Berlin, the rent has rose by 2,70 € per square meter. In Munich at the same period of time, however, the rental price has increased by 4,24 €.  

Comparison of rental prices in 2011-2014

Source: http://www.wohnungsboerse.net/mietspiegel-Berlin/2825

The big lack of specialists, especially in Munich, keeps companies always under the pressure from shifting to more attractive jobs with better offers. The headhunters have to provide leadership positions in the top ten big cities of Germany. Appliers can easily find interesting job offers in online portals, that sound very tempting. In response to the shortage of skilled workers, more and more big companies are about to split up salaries and to declare a proportionate amount as housing benefit subsidy. Some politicians are already proclaiming quite a lot of time to attract specialists from abroad. But whether or not it is going to solve the problem, is still a big question, because these workers must be able to live properly.