According to the latest Prognos Future Atlas, which is a competitiveness index of German districts and cities, greater Leipzig tops the list of up-and-coming regions in Germany. Saxony’s largest city has been outperforming in economic, cultural and demographic terms. In no other German city did the economic prospects improve as rapidly over the past 15 years as in Leipzig, or so the survey by the Prognos research institute suggests. Traditionally known for its university and trade fairs, Leipzig has lately built up a successful track record as business, research and science location, with many existing companies relocating here and start-ups being formed.
The brisk development is reflected by the housing market. The need for residential accommodation is subject to continuous growth while both rents and prices are rising steadily. Recent surveys on the demand for homeownership and property values show that Leipzig is going through a brisk boom cycle with respect both to the number of condominiums sold and to selling prices. The appreciation reflected in the rise of condominium prices can also be expected in the outskirts of Leipzig in future. The economic growth of the city and the rising purchasing power of its population will further stimulate the trend.
Meanwhile, rents and prices for homes and condominiums in Leipzig have gathered considerable momentum: Rents, for instance, have gone up by 4.4 percent on average since the end of 2014. Much the same is true for the growth of selling prices. While prices for condominiums and houses remained more or less stable between 2007 and 2010, they have been following an upward trend since.
Just look at the figures: As recently as 2017, condominiums sold for a square-metre price of 875 euros, whereas now the going rate is 1,245 euros, an increase by 42.4 percent. So, it pays to check for attractive private investments in the form of a condominium just beyond the city limits and to take advantage of the currently favourable market conditions. The flats in Schleussig, Böhlen and Dösen—which are districts or suburbs of Leipzig, respectively—are located in well-appointed multi-unit dwellings either in the form of Belle Époque apartment buildings or terrace housing. All of the houses are in good repair, lie on quiet side streets and yet in central locations, some are grouped around a green courtyard and come with parking spots. Over the years, a stable tenant base has evolved that appreciates the advantages of living in Leipzig and prefers these peaceful, scenic settings over any other place of residence.
Getting a condominium in Leipzig and its suburbs is therefore a rock-solid, forward-looking commitment that also has a high-yield outlook as a buy-to-let investment because the demand for housing in this area just keeps intensifying. There is every reason to expect a stable rental yield and a steady appreciation.
We will gladly assist and advise you if you are interested in buying a condominium. Feel free to contact us any time or to come see us in person at our consulting office.