Buy-to-let properties in Bavaria: Figures, cities & yield

Andriy Bezborodko · 2026-10-13

You are looking for a let apartment as an investment and are looking at Bavaria because you live here or because the state has a good reputation. Both are understandable. However, "Bavaria" is not a uniform market: there is almost a factor of five between the square metre price of an existing apartment in Hof and one in Munich.

This page categorises the state for investors. You will find the official key figures, a comparison of the most important cities, the rules for landlords, and an honest assessment of where the population is growing and where it is shrinking. for individual cities, there are separate pages with example calculations.

01Bavaria in figures

The table summarises the most important state data. Where values vary greatly by city, you will find the details in the next chapter.

Two figures stand out. The average rent according to the Census in Bavaria is 20% above the national average; only Hamburg is higher. and the vacancy rate is nevertheless not low: at 4.2%, Bavaria is almost exactly at the national average of 4.3%. This fits together once you separate the regions.

02Population: Growth in the south, decline in the north

At the end of 2025, 13,245,503 people lived in Bavaria, 3,425 fewer than a year earlier. Around 33,500 more people died than were born. Migration from abroad and other federal states almost balanced this out. For landlords, this means: demand in Bavaria depends on migration.

Nevertheless, the official forecast of the State Statistical Office expects a plus of around 278,000 inhabitants to 13.53 million by 2044. This is significantly less than in the past twenty years. and it is distributed unequally: Upper Bavaria is expected to grow by 3.2%, Lower Bavaria by 3.1%, and the Upper Palatinate by 2.2%. Lower Franconia is expected to lose 1.3%, and Upper Franconia 3.3%.

at the municipal level, the picture is even clearer. Of the 2,056 Bavarian municipalities, 38% are expected to grow noticeably, 39% to remain stable, and 23% to lose more significantly. At the same time, the state is ageing: the share of people aged 67 and over rises from 19 to 23.6%, and the number of 20- to 66-year-olds falls by around 371,000.

Vacancy follows the same pattern. on the Census reference date 15 May 2022, it was 2.0% in the city of Rosenheim, 2.4% in Munich, and 2.6% in the Munich district. at the other end are the Wunsiedel district in the Fichtelgebirge with 9.0% and the city and district of Hof with 7.8 and 8.4%. Of all empty apartments in Bavaria, 58% had already been empty for twelve months or longer. This is no longer a normal change of tenants.

03The most important cities for investors in Bavaria

The following table shows the eight largest cities in Bavaria and Kitzingen, for which we are preparing a separate page. Vacancy and rent both come from the 2022 Census so that the cities are comparable. The rent is the average of all existing rental contracts in May 2022, not a current asking price.

Inhabitants: official continuation from the State Statistical Office. Rent control according to the Bavarian Tenant Protection Ordinance, as of 13 Oct 2026.

Purchase prices from the appraisal committee are available for Munich: existing apartments cost around €6,500 to €9,150/m² in 2025 depending on the year of construction, and new-build apartments around €9,800/m² in the first half of 2026. In Nuremberg, existing apartments were between €1,800 and €6,800/m² in 2025 depending on location and year of construction. For Augsburg, the IVD Süd market report quotes around €3,990/m² for existing apartments with good residential value in spring 2026, and around €5,750/m² for new-build apartments in Regensburg. These are values from a brokers' association, not an evaluation of purchase prices. State-wide, the State Appraisal Committee quotes a median of €3,600/m² for existing apartments, from €1,700 in Hof to €7,900 in Munich.

What does the table say? All major cities have vacancies below the state average. The vacancies are therefore primarily in the countryside and in smaller cities in the north. Munich has the highest rent, but also by far the highest purchase prices. In Nuremberg, Augsburg, or Würzburg, rents are lower, but entry prices are as well. Which city suits you better depends on the ratio of purchase price to rent, which we calculate individually on the city pages.

04Rules for landlords in Bavaria

Bavaria regulates rent control and the reduced rent increase cap in a common Tenant Protection Ordinance. it has been in force since 1 Jan 2026 and, following an amendment in June 2026, for 284 municipalities. These include all major cities, many municipalities in the greater Munich area, and tourism resorts in the Alps.

05Summary: Is Bavaria worth it?

Bavaria is a location for investors who primarily seek safety and benefit from the lowest incidental purchase costs in Germany.

1. Low entry costs: With 3.5% property transfer tax, you save between 1.5 and 3% compared to other federal states right at the start.
2. Stable economy: The low unemployment rate and the presence of many DAX-listed groups ensure a solvent tenant base.
3. Regional gap: Safety in the south (Munich, Regensburg) has its price. Anyone seeking yields of over 4 or 5% must look to the north (Hof, Schweinfurt) or smaller medium-sized centres.
4. Strict regulation: In the sought-after locations, the state intervenes strongly in the market via ordinances.

Our recommendation: Bavaria is ideal for a "buy and hold" strategy. If you buy in a B-city like Nuremberg, Augsburg, or Würzburg, you get a good mix of letability and entry price.