Munich’s 1A High Street Retail Real Estate Market

Munich’s Prime High-Street Retail Market Overview

Munich’s “1A” high-street retail market — encompassing the city’s most prestigious, central shopping zones — remains in a class of its own in Germany. For retailers and investors alike, the appeal of these ultra-prime locations lies in a potent combination of high footfall, strong purchasing power and scarcity of supply.

Why Munich Stands Out

Kaufingerstraße, Neuhauser Straße and Maximilianstraße are widely recognised as Munich’s elite high-street corridors. Kaufingerstraße alone has been described as Germany’s busiest shopping street, with rental values frequently topping €300 per m² for prime retail space. According to a 2024 update, Munich’s prime retail rents reached about €325 per m² for units of 60-120 m² in prime locations.

Munich remains the number one retail location in Germany based on prime rents, purchasing power and retail-space productivity.

Market Dynamics & Investor Sentiment

From an investment perspective, high-street retail in Munich continues to attract strong interest despite headwinds. Investment volumes in the city centre are dominant: in Munich, the city-centre segment accounted for over 75 % of investment volume in recent years, with retail properties forming a large share. Yields for 1A high-street retail in Munich were recorded at around 3.40 % in Q2 2023, reflecting tight pricing and strong competition.

Trends & Outlook

• Scarcity driving value: The limited supply of genuine “1A” units in Munich’s pedestrian zones means premium rents and high barriers for new tenants or investors.
• Footfall + purchasing power: With a broad catchment area and strong tourism, Munich’s core shopping streets benefit from both locals and visitors.
• Online-retail complementarity: While e-commerce grows steadily, physical stores in prime high-street zones retain their relevance for brand exposure and experience-based retail.
• Yield compression & stability: Stable income and strong tenant profiles make Munich high-street retail a core target for institutional capital.
• Location stratification: The gap between prime and secondary locations continues to widen.

Implications for Retailers and Investors

For retailers seeking flagship space, Munich’s premium high-street locations offer unmatched exposure but come at a premium cost. Tight supply means early commitment is essential. For investors, assets in these “1A” locations offer long-term stability, strong brand neighbourhoods and resilience, though entry yields are low and acquisition pricing high.

Conclusion

If you’re evaluating the high-street retail real estate market in Germany, the core pedestrian zones of Munich unequivocally sit at the top. With prime rents exceeding €300 per m², yields hovering in the low 3 % range and continuing strong demand from brands and investors alike, Munich remains the benchmark for “1A” high-street retail.

For anyone analysing retail property, considering leasing in a flagship location or investing in a prime unit, Munich’s high-street market offers both prestige and performance — albeit at a premium.

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