Munich, the capital of the region of Bavaria, is one of the most successful German major cities and also figures among the international leading economic metropolis. The attraction of Munich is based on its wide and balanced economic structure and its diversity of branches and its excellent infrastructure. Global players (e.g. Microsoft, Intel, Sun Microsystems) as well as “hidden champions” of the SME-level (small and medium-sized enterprises) and emergent start-ups appreciate the perfect conditions of this business location. This mix of companies from different sizes and branches and the tight network between high-tech enterprises and companies from the manufacturing industry represent the so called “Munich Mixture”. It’s because of this mixture that Munich counts among the economically most stable business places in Germany resistant to economic crisis. This high-tech potential is combined with a strong geographic and cultural identity and a big self-consciousness about the leadership in Germany respectively in the world, a combination summarized by the “laptop and lederhosn”-principle launched by the marketing department of the region. Although, the metropolitan area of Munich does not only excel because of hard location factors but also because of its high leveled quality of life due to its various leisure and cultural facilities, topped by the stunning nature of the Alps close to the city limits.
Strong business lines and good infrastructure
Among all local business lines information and communication technologies, media, services, automotive, research and science businesses – especially life sciences, medical and environmental technologies and aerospace –financial services and creative economies are the most important ones. Whereas, representing about 75% of the local GVA (Gross Value Added) the service sector is the most important one. Among the provided services the most important are consulting services (legal, tax, business and technical consulting). Munich is the most important business place for insurances in Germany and the second banking place after Frankfort. About 25% of the local GVA are realized by manufacturing industries.Munich is the “DAX capital” of Germany, i.e. six of the 30 companies listed in the German share index (DAX) have their headquarters in Munich (e.g. BMW, Allianz, Siemens).
Every year, about 22,000 new businesses are registered in Munich which might be due to the good infrastructure: Munich is located in the center of Europe and maintains an excellent street network, a modern public transport system, good availability by trains and an international high-class airport. Munich is an international hub for west-to-east and north-to-south trade and traffic. Furthermore the Munich trade fair is one of the most successful in Europe and the universities and research institutes have an excellent reputation in all over the world.
Special competence: technology business place no. 1
The economic region around Munich is the undisputed leader as business place for technologies. Global players on the one hand and companies of the SME-level and innovative start-ups on the other have chosen Munich as high-tech business location. Over 8,000 companies doing business in new technologies are located in and around Munich. In Munich they find a wide range of qualified service providers and suppliers and an outstanding scientific infrastructure which guarantees innovation and ensures a constant supply with excellent and skilled professionals.
The real estate market of Munich is one of the biggest in Europe after Paris and London with a turnover of about 11 Billion EUR (2013) in residential, business and office construction with a bullish tendency.
Counting about 1.5 Mio. residents Munich is the third biggest city of Germany (behind Berlin and Hamburg). Contrary to the trend of other cities in Germany, the population is growing constantly, up to an expected population of 1.65 Mio. residents in 2030. With about 1 Mio. professionals Munich has the highest employment rate of the biggest cities in Germany (56.8% compared to 53.4% in whole Germany). Further, with about 4.7% Munich has the lowest unemployment rate of the biggest cities in Germany (7.9% in whole Germany). Regarding the purchasing power of its residents, Munich has the biggest power (about 25.000 EUR per resident compared to about 19.000 EUR for whole Germany).