now is the time to invest in Leipzig real estate
The city of Leipzig, located less than 200km south-east of Berlin, is one of Germany’s most dynamic and fastest-growing cities. With the highest employment growth in Germany, a youthful, creative population enjoying a high quality of life, and comparatively low property prices with attractive returns, Leipzig is an ideal place to invest. And with only 1% of property bought by internationals, now is the perfect time to buy an apartment in this flourishing city.
With a population of over 590,000 people, Leipzig's real estate market is taking off. Divided into ten districts, which are subdivided into several mini-districts, the Saxon metropolis finds itself in a position of steady growth. The city has attracted young, creative, like-minded individuals who have stimulated the job market and the economy. Both private and corporate investors have taken an interest in Leipzig's property market for this reason. With the city centre buzzing with a high population density, historic architecture, and esteemed universities, it is of course a hot spot for rising property prices. However, the districts surrounding Leipzig Mitte, which are a mix of residential and commercial areas, are experiencing significant growth as well. Apartment buildings, residential complexes, offices, and commercial spaces are currently in demand.
Property prices in Leipzig are amongst the lowest in Germany, and lower than other popular European property markets, but are steadily increasing and look set to continue to grow. The ever-popular Altbau buildings have seen solid growth in recent years.
Price increase, 2009 – 2017: +8% per annum
Most investors sell their properties after 10 years, ensuring they incur no Capital Gains Tax and maximise their profit.
Source: Gutachterausschuss in der Stadt Leipzig
Recovering from its low point in the years immediately following the reunification of Germany, Leipzig has seen significant growth in most important metrics in recent years.
Highest employment growth in Germany: +21%
Average monthly wage: +19%
Source: Stadt Leipzig, Amt für Statistik und Wahlen
Everything points to Leipzig being on an upward trend. The city has seen the highest population growth in Germany: +9.5%, most of which has been driven by younger people. It is one of the few places in Germany with an increasingly youthful population, giving it a hugely promising future.
Source: Leipzig Stadt, Amt für Statistik und Wahlen
Germany, a historical powerhouse of industry and manufacturing, offers a strong, stable economy in which to invest. Several advantages make it particularly attractive for real estate investment. These include low interest rates, easy access to capital, as well as a record of stable returns, and favourable conditions for long-term investments.
In case you're still on the fence about purchasing property in the Saxon city, here are some more encouraging statistics to consider:
If you would like more information about Leipzig's neighbourhoods, check out our neighbourhood guide. Or if you're interested in buying real estate in Leipzig, don't hesitate to reach out to us via the form below.