The run on the Munich condominium market could have been observed for years. Among other
large German cities, Munich is usually known as the most expensive one in terms of living
space. People moving to the city and searching for an accommodation are exhausted about the
lack of supply – combined with the high prices. Nevertheless, the demand for condominiums
is still increasing, especially among private investors. Hence, some market observers
sometimes even talk about a possible housing bubble. Thereby, one usually refers to market
data only. The participants themselves, their motives, considerations and concerns are hardly
paid attention to.
In terms of this dissertation, the private investors’ operations, backgrounds and incitements
build the research angle instead. By observing and assessing their decision-making processes
and general behavioural patterns, one seeks to indicate, whether a housing bubble is likely to
arise on the Munich condominium market. Guidance is given by the Efficient Market
Hypothesis according to Eugene F. Fama (1965) and the Behavioural Finance theory
introduced by Kahneman and Tversky in the 1970s.