Aktuelle Corona-Infos der Stadt unter www.muenchen.de/corona
zum Seitenanfang
Logo of the City of Munich Landeshauptstadt München

Munich economy - key data


Kennzahlen  Link öffnet eine vergrößerte Darstellung des Bildes.
© wrangler / Shutterstock.com

Population, economic strength, employment, real estate

Munich and the surrounding area are one of Europe's most dynamic business regions. Major rankings have repeatedly shown the Bavarian capital to be among the leading international business hubs as well.

Global players and SMEs, promising start-up companies, large corporations and one-man businesses all enjoy Munichs' prosperous economic climate. A broad and well-balanced mix of industries and an excellent infrastructure are complemented by an unrivalled array of leisure and recreational facilities.


Population

Home to 1.56 million people, Munich is the third-largest city in Germany. It is one of the industrialized world's growing metropolises and is particularly attractive to young, well-educated adults. Forecasts indicate that the resident population will exceed the 1.85 million mark in 2040.

2020 once again saw more births than deaths in Munich. After the rate of increase in the birth rate dipped slightly over the past three years, in 2020 it was again up on the same level as in 2018. 

The proportion of foreign nationals – 28.5 percent – is one of the highest in Germany. People from a total of 191 countries live in Munich, cementing its character as an open-minded city of diversity and tolerance.


Economic strength

Munich and the surrounding region form the focal point of business activity in the Free State of Bavaria. 11.3 percent of the Bavarian population live in the City of Munich, where they generate 19 percent of the state's Gross Domestic Product (GDP). In 2018, this figure totalled €116.6 million for the City of Munich. The service sector is the region's dominant industry, accounting for 78.2 percent of Munich's GDP. Manufacturing contributes 21.8 percent to Munich's GDP.

The Bavarian capital's labor productivity – its GDP per gainfully employed person – is similarly remarkable. In 2018, this key ratio stood at EUR 103,355 – the highest figure compared to all other large cities in Germany.


Employment

In the City of Munich, Germany's second-largest employment hub, a total of 898,000 people hold employment subject to statutory social insurance. Overall, 1.5 million people are gainfully employed in the Munich region as a whole. Employment figures in Munich grew steadily over the last ten years, adding a good 2 percent in jobs subject to statutory social insurance per year. In 2020, there was a standstill here due to the Corona pandemic. Nevertheless, the employment situation in the Munich region did not change significantly compared to the previous year. In the city of Munich, SV employment even increased by + 0.1 % (+765). Of course, this also reflects the very heavy use of short-time work in the pandemic year.

For years, Munich's unemployment rate has been the lowest compared to Germany's other major cities. In the Munich agency district, the unemployment rate averaged 4.5 % in 2020 as a result of the pandemic, following a historic low of 3.3 % in 2019.

At 64.3 percent, Munich's employment rate is higher than that of Stuttgart, Frankfurt/Main, Hamburg, Düsseldorf, Cologne and Berlin. Compared to the same group of cities, an average of 37.1 percent of Munich's socially insured employees possess academic degrees – by far the highest proportionate level of qualifications.


Real estate market

Alongside London, Paris and Berlin, the Munich property market ranks as one of the most important in Europe. In 2019, turnover in the industrial real estate and office property markets added up to a total of EUR 10.9  billion, a new record. In 2020, not only the German but also the Munich office property market clearly showed the corona-related slumps. Office space turnover fell by 26 % to 567,800 m².

Office vacancy rates rose significantly in almost all major real estate locations - with the exception of Duesseldorf - due to the effects of the Corona pandemic. In Munich, the vacancy rate rose from 2.2 % to 3.5 %. This represents a 61 % increase in vacancy volume from just under 300,000 m² to a total of 787,900 m².

However, these market developments did not result in a decline in highest office rents per square meter. With the exception of Frankfurt, which continues to have the highest top office rent (45 euros/m2 ), office rents in all other comparable cities have either risen, as in Stuttgart (+6.4 %), Hamburg (+3.4 %) or Berlin (+3.0 %), or remained the same, as in Munich.

In Munich, the top rent for office space per square meter in 2020 was €39.50, as in the previous year.

The continuing influx of new arrivals and vigorous demand for real estate on the capital market are making living space in Munich both scarce and expensive. The City of Munich is responding proactively by continuing the construction of subsidized housing and accelerating the relevant administrative procedures in the current program "Living in Munich VI". With a budget of EUR 870 million in total, is is currently Germanys largest municipal housing program and is to build an average of around 8,500 new apartments per year in Munich. In 2020  there were at least 8,300 new apartments finished. At the same time, rents in all price categories continue to rise in and around the city.

Data 7/2021