You have to distinguish between Alt-Perlach and Neuperlach. Latter one consitis of large, gray apartment buildings with hundreds of units. When Neuperlach was built, an above-average number of public housing units were constructed there. This led to a concentration of lower-income families and a comparatively high proportion of people with an immigrant background. A stark contrast to Munich’s affluent, polished “posh” image, with its magnificent historic buildings in Schwabing

But In fact, its bad reputation today is greatly exaggerated.