Currently, experts are divided on whether a real estate bubble is forming in the residential property market in Munich. Some believe that property prices are developing based on reality, meaning that prices are driven by high demand, which is expected to continue with the growth of the population in Munich. Other experts argue that a significant rise in property prices is noticeable in certain regions, and it is the responsibility of national authorities to actively address the potential for a real estate bubble. This work addresses the issue of the emergence of a real estate bubble in the Munich residential property market. The aim of the study is to investigate the individual factors that contribute to a real estate bubble. It seeks to clarify whether a real estate bubble is forming in the residential property market in Munich or if it is merely a perception.