Chemnitz, the former East Germany’s fourth largest city, is located near Germany’s south-eastern border and therefore quite close to Poland and other East-European markets. It’s true to say that re-unification initially made such locations less attractive – for instance, there was little major development in the city centre until around 1999. Nevertheless, recent years have seen a steady reversal of this trend. So, as often happens, the city’s relative wealth is presently not well reflected in current rental levels, which, according to TAG Immobilien figures for 2017-18, have remained virtually static. Though this represents an advantageous opportunity for tenants, astute investors will understand this is also a good indicator of future development capacity.
While Chemnitz may not yet feel entirely comfortable describing itself as a trendy location, Immowelt data confirms the property ROI in both western and eastern Germany is now significantly greater than that achieved in northern and southern Germany. What is more, the industrial city of Chemnitz actually tops the Immowelt list alongside Duisburg and Wuppertal. In recent years, the city has seen a welcome influx of more than 10,000 new residents. Furthermore, the positive rate of economic growth within Chemnitz now means it consistently appears among Germany’s top ten cities. Since the dawn of the new millennium, the city has regularly returned a high GDP. In 2016, for example, the city’s economy registered a GDP of €8.456 billion and returned a per capita GDP of €34,166. Prospective investors will see there is much going on under the radar in Chemnitz.
Chemnitz has a population of more than 247,000 (2018). Around 100,000 people work in the city, with 46,000 of that total commuting from elsewhere in the region. Interestingly, 16.3% of the workforce in Chemnitz are educated to degree level – around twice the national average. The city’s Technical University consistently attracts a flow of young, well-funded individuals – who have very little difficulty finding suitable accommodation among the affordable student apartments in Chemnitz. In terms of transport and infrastructure, Chemnitz is around an hour away from two international airports at Dresden and Leipzig. In addition, it has two excellent motorway connections: Access to the A4 connecting the city with Aachen, Eisenach and Leipzig, and to the A72 linking Chemnitz with Hof and Leipzig.
Many German regions are experiencing a decline in transaction volumes, some just because there are too few real estate properties being marketed at present. Despite this trend, it should be noted that a 2018-2019 Savills comparison shows that transaction volumes in seven premier East-German real estate markets have all seen significant increases. In the case of real estate in Chemnitz, the growth was a very respectable +25%. For those looking to buy an apartment in Chemnitz, the current prime residential locations are Adelsberg, Schlosschemnitz, Kapellenberg, Kassberg, Altendorf, Rabenstein and Reichbrand. Considering affordable apartments in Chemnitz; to get a reasonable rental apartment with a good residential value you would currently have to spend 5 – 7 €/m2, a most reasonable asking price in the current climate.
One renowned Chemnitzer, German footballer Michael Ballack (former captain of Germany, and European giants Bayern Munich FC) has already succeeded in putting the city on the map for keen sports fans. However, the appointment of Chemnitz as the European Capital of Culture for 2025 is likely to bring the city to the attention of a far wider audience. The famous Chemnitz opera house, breathtaking Art Nouveau architecture, and historic Kassberg neighbourhood are sure to give visitors a fascinating insight into the city’s cultural heritage. Sometimes referred to as the “the Saxon Manchester”, Chemnitz has been an important industrial centre since the early 19th century. Long before that time – around 1170 – Chemnitz was appointed an Imperial City by the Holy Roman Emperor Frederick 1. And by the Middle Ages, the city had grown to become a medieval centre for the regional textile trade.
Chemnitz is also home to Saxony’s third largest university, the Chemnitz University of Technology (TUC). Once a centre of singular technical excellence, its engineering focus has been upgraded in recent times to include disciplines such as computer science, economics, maths and social sciences. This Saxon university now caters for the needs of around 10,000 students. Given the city’s industrial heritage and educational resources, it is hardly surprising Chemnitz has attracted commercial investment and forged a reputation for excellence in many fields, such as: microsystem technology, the automotive industry, mechanical engineering and metal processing. Thus, the presence of multinational corporations such as Volkswagen and Siemens rather speaks for itself.
Our real estate agents in Chemnitz can offer you a rare blend of experience and contemporary agile market thinking. If you’re seeking to build up or develop your own exclusive real estate portfolio, perhaps looking for competitive financing solutions, and appreciate the virtues of transparent, no-nonsense property transactions, then look no further: Our 35 years of market expertise and comprehensive personal advice from our experienced sales consultants is entirely at your disposal. And with today’s data-driven property market often active 24/7, our flexible online platform can also accommodate clients who prefer to communicate and handle their real estate purchases entirely in the digital domain.
Our real estate agents have a very good knowledge of the Chemnitz real estate market and are therefore able to provide you with a well-founded service tailored to your needs. In Chemnitz we can help you find apartments in old buildings, new buildings as well as rented properties. We support both owner-occupiers and investors in buying real estate and present attractive properties in the best locations. Are you looking for an affordable house in Chemnitz? We can help you quickly and efficiently in your search. In addition, we will introduce you to different forms of financing, reliably assist you in contract negotiations, and accompany you until the contract is signed and beyond. A customer-friendly after-sales service is also part of our services. In our comprehensive real estate portfolio, everyone will find the property that suits their individual wishes and plans.