Cost of Living in Munich


How much does it cost to live in Munich?

Updated: June 2021
Munich Living Cost

Cost of Living in Munich in 2021

Munich is well-known in Germany for being the country’s most expensive city. In 2020, the city was ranked 72nd out of 209 cities across the globe (source), coming in as more expensive than Madrid and Brussels, but less expensive than Milan and Paris. But with cities like Berlin and Hamburg growing more populous and expensive every year and a predicted fall in Munich’s real estate prices, will Munich soon be considered an affordable option? Let’s dive deep into Munich’s cost of living in 2021 to find out:

Price of accommodation


Renting an apartment in Munich will be the largest monthly expense for most people. Housing costs are currently significantly higher here than in other German cities, with a 1-bedroom apartment in the city center costing on average almost €1300 per month. Living outside of the center will lower the price by about a quarter. Investing in property in Munich will also cost you a pretty penny: the Bavarian city is currently the most expensive place to buy an apartment in Germany, with an average value of €8,442 per square meter in 2020. That being said, Jochen Möbert, an expert at Deutsche Bank, recently stated that housing prices are expected to drop in coming years. However, this is just an estimation, and prices are still at an all-time high.

Did you know that you'll be asked to provide a proof of Privathaftpflichtversicherung (private liability insurance) and, if any dog, Hundehaftpflicht (dog liability insurance) when renting an apartment? This is to cover damages caused by you or your dog to the rented property.

Cost of food

German food

Food provisions in Munich are similarly priced to the rest of Germany, with a carton of milk costing around €1. For expats familiar with German grocery stores, the monthly food allowance will be mostly the same as in any other German city. Depending on how large your family is and which food preferences you have, you can expect to spend between €200-500 every month on groceries. For those who like to buy lunch out, the average cost of a lunchtime menu in the business district is around €11.

Restaurants and entertainment

Bavaria Restaurant

Eating out in Munich is more expensive than in Berlin, but not significantly higher than in other European cities. At an inexpensive restaurant, the main dish will cost around €14, while a meal for two people at a mid-range restaurant will cost around €60. A cappuccino at a café costs on average €3.20. Two tickets to the movies will be around €22, and a cocktail at a downtown club will be about €10. 


Munich transports

Public transportation in Munich is about 10% more expensive than Berlin, with a one-way ticket costing €3.30. A monthly transport ticket will cost about €61, which is cheaper than driving a car. Gas is somewhere around €1.32/liter, but car insurance and taxes are costly, as is parking within the city center. That being said, Munich is a great city to get around with a bicycle, with many bike lanes throughout the metropolis. 



Munich is undeniably an expensive city when compared to the rest of Germany. Housing prices, especially, have skyrocketed in recent years. According to Deutsche Bank, if the prices continue to rise at the current rate, Munich will replace Paris as the most expensive European city in 2024. However, Deutsche Bank also predicts that the current value growth rate is not maintainable and real estate prices are expected to level off if not drop in the next few years. Food, entertainment, and transportation are slightly higher in Munich than in other German cities but are still within reason and comparable to most other large European metropolises. It should also be noted that salaries are generally higher in Munich than in Berlin or other parts of Germany. With these facts in mind, Munich is not necessarily an unaffordable city for expats looking for a new German home

Author: Catherine Norris from EverEstate

Originating from Tennessee, Catherine has been living in Berlin since 2017, and writing for the EverEstate blog since 2019. EverEstate is the digital platform of the ZIEGERT Group for real estate brokerage, with a forward-looking digital approach and a superb portfolio of properties in Berlin, Leipzig and beyond. 



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