Munich is the number one location in Germany in many respects, thanks to its unique blend of cultural, geographic, and economic factors. The Bavarian state capital, with its population of 1.5 million, is not only home to important cultural attractions such as theaters, opera houses and museums; it is also a magnet for tourists traveling to Germany, and the site of major sporting events and several universities with more than 90,000 students. At the same time it also has the strongest economy and highest purchasing power among major German cities, plus it is the heart of the German region with the best prospects of future growth and prosperity. This is an ongoing trend – the latest prognoses show that population is to grow to 1.651 million by 2030. About 90 of the 1,000 largest companies based in Germany are headquartered in Munich, including global corporations such as Allianz, BMW, MAN, Munich Re, and Siemens. Munich and its surrounding area shape the economic heart of Bavaria.
Munich’s successful position is supported by many pillars. Besides a healthy mix of large companies, SMEs as well as small start-ups, traditional skilled crafts are above all responsible for the powerful economic factor. One of Munich's greatest strengths is that no one industry dominates and orders the city's prosperity. High-tech industries and knowledge-intensive services are alongside traditional production. Next to information and communication technology and automotive engineering, industries such as medical engineering, environmental technology and aerospace also are strong market drivers. Munich is also a prominent media hub and a center of the southern German finance sector. It ranks as Germany's number one insurance venue and is the location of six blue-chip corporation headquarters listed in the Dax 30 index. The unique “Munich mix” brings together companies of all shapes, sizes and industries and thus keeps the city exceptionally resilient and crisis-proof.
Munich is well integrated into the public transport network. Numerous motorways as well as regional, national and international train connections provide excellent accessibility. Munich’s international airport was able to set a new passenger record. In addition it is one of Europe’s most modern and popular airports and is consistently expanding.
Europe’s Third Largest Office Location
After London and Paris, Munich is the third largest office location in Europe, with 22.5 million square meters of existing office space. As one of the most sought-after locations in Europe, the city also draws attention from investors and developers thanks to its financial security and growth prospects. In 2017 Munich and its region was ranked at seventh place in the European Regional Economic Growth Index (E-REGI) among nearly 326 competitors from 33 countries in Europe. The E-REGI identifies those cities and regions that hold out the strongest economic development potential in the short to medium term, and that this promise to attract the most sustainable demand for real estate.
Especially young and well-educated people are driven to the Bavarian capital. The city and the real estate industry are thus faced with hard challenges. Living space in the capital city is scarce. The demand for new space lies at approx. 7,000 living quarters per year. In response, Munich is pressing ahead with “Wohnen in München“ (Living in Munich), the country’s largest local government housing construction program, in which it invested 800 million euros for urban housing development between 2012 and 2016.