Now is the time to invest in Leipzig real estate
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.
Leipzig boasts a modern transportation infrastructure including an airport, ICE train stop, public transportation, and autobahn.
From biotechnology and logistics to trade fairs and the automotive industry, Leipzig's economy is thriving.
The purchasing power per resident is estimated to be around 18,000 euros.
Unemployment remains at a constant state of less than ten percent.
The vacancy rate for rentals has stayed below 4% for several years.
Residential property is priced upwards of 3,000 euros/sqm in some areas. For modernised residential buildings, the base rent is estimated to range from 7 euros/sqm up to 15 euros/sqm.
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. Most investors sell their properties after 10 years, ensuring they incur no Capital Gains Tax and maximise their profit.
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.
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.
Icons: Javier Danglada