After much hesitation, the Free State of Bavaria introduced a conversion ban for rental apartments on June 1st. It also applies to Munich. In 50 municipalities whose housing market is classified as tight, rental apartments can then no longer be converted into condominiums without approval from the building control authorities. The regulation, which the Council of Ministers passed on Tuesday, is limited to December 31, 2025. It applies to apartment buildings with at least eleven apartments.
The fact that nothing changes for houses with up to ten apartments creates “a good balance between better protection for tenants from conversions and the protection of small owners provided for by federal law,” said Building Minister Christian Bernreiter (CSU). On the other hand, the Munich Tenants’ Association has sharply criticized the limitation. This left tenants in such houses unprotected. “The cabinet must sharpen the regulation, otherwise Munich will continue to be sold to investors and affordable housing will be irretrievably lost,” said Chairwoman Beatrix Zurek (SPD).
Among the 50 Bavarian municipalities with a tight housing market, the Free State includes not only the city of Munich but also cities in the surrounding area such as Dachau, Fürstenfeldbruck, Germering, Puchheim and Grafing as well as municipalities such as Eching, Unterföhring, Haar, Höhenkirchen-Siegertsbrunn, Unterhaching, Kirchseeon, Markt Schwaben and Münsing .