Germany’s Fastest Growing City

5th Strongest Startup Hub in Germany

Centre of the Central German Railway Network

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Leipzig: Germany’s Fastest Growing City

Leipzig, a vibrant city located in the heart of the eastern German state of Saxony, has emerged as a prime destination for property investment in recent years. Known for its rich cultural history, architectural beauty, and excellent connectivity, Leipzig has experienced significant growth and development, making it an increasingly attractive location for both domestic and international investors.

The city boasts a diverse and thriving economy driven by sectors such as Automotive, Logistics, Media, and Technology. Leipzig has also established itself as a major educational hub, home to prestigious institutions like Leipzig University and Leipzig University of Applied Sciences. The convergence of these factors has led to rising demand for housing, as students, young professionals, and families are drawn to the city for its education, employment, and lifestyle opportunities.

Outlined by the INSEK Integrated Urban Development Concept for Leipzig 2030, it’s apparent that the city is committed to ensuring Leipzig evolves into a prominent national and international business hub with a world-class quality of life, while also becoming a modern and attractive European city for science, the arts, and cultural identity.

Leipzig's property market has demonstrated remarkable resilience and growth, with property prices and rentals witnessing a steady upward trajectory. The city's ongoing regeneration projects and urban development initiatives have not only enhanced its appeal as a place to live and work but have also created new investment opportunities in both residential and commercial sectors.

Investing in Leipzig's property market offers several advantages, including relatively affordable entry points, stable rental yields, and long-term capital appreciation potential. Additionally, the city's strong economic fundamentals, low unemployment rates, and growing population ensure sustained demand for housing.

Leipzig in a snapshot


Leipzig’s population has subsequently increased by 29% since 2000 and currently stands at 616,480 residents today. Leipzig is currently Germany's fastest-growing city in terms of population, which will grow to 653,870 by 2040.

Housing Market:

Leipzig's population has increased by 136,830 since 2000, requiring 80,500 housing units; however, only 58,400 were built or renovated. With forecasted demand and average completions, a shortage of 8,333+ units may persist by 2040.


With a thriving economy driven by key growth industries and a low unemployment rate of 4.0% (2023), Leipzig’s GDP is expected to increase by a further 75% and reach EUR49 billion by 2040, up from EUR28 billion in 2023.

Five Reasons to Invest In Leipzig’s Property Market

Leipzig's future shines bright as Germany's fastest-growing city, projected to reach 6.1% population growth from now to 2040. With an array of diverse districts, a flourishing economy, world-renowned educational institutions, and a high demand for housing, Leipzig is an attractive destination for investors and residents alike.

As the second-largest city in East Germany, Leipzig has transformed into a hub for research, economic development, and quality of life. From charming historic neighbourhoods to vibrant startup scenes and lively cultural areas, the city has something for everyone. Leipzig's Lord Mayor, Burkhard Jung, is committed to making the city Germany's most livable through various urban redevelopment initiatives.

Real estate in the city, driven by the thriving economy and rapid population growth, is in high demand. However, supply constraints have led to increased house prices and rents. Despite this, Leipzig still remains popular among renters and buyers due to its comparatively lower prices than Berlin.

As rural areas face depopulation, urban centers like Leipzig are flourishing, attracting families seeking improved work and living prospects. Following a decline after the Berlin Wall's fall, Leipzig, East Germany's second-largest city, has experienced a 29% (+136,830) population increase since 2000, with 616,480 residents today. As Germany's fastest-growing city, Leipzig is projected to have 653,870 residents (+6.1%) by 2040.

Leipzig’s Lord Mayor, Burkhard Jung, aims to make the city Germany's most livable, and this ambition is evident through various urban redevelopment measures designed to enhance, improve, and increase the attractiveness of individual districts.

Investors are increasingly drawn to Leipzig's region, captivated by its potential. A diverse range of districts offers a blend of history, culture, and modernity. Südvorstadt is a lively, liberal area, with Karl-Heine-Straße being a popular destination for cafés, pubs, bars, restaurants, and independent fashion and art retailers. On warm summer evenings, Leipzig comes alive with music, events, markets, and alfresco dining. From Gohlis' elegant villas and parks to Lindenau's lakes and canals, and from Plagwitz's lively startup scene to Connewitz's appeal for students and young families, Leipzig has something for everyone.

Following the fall of the Berlin Wall and German Reunification in 1990, Leipzig faced severe job losses and depopulation due to collapsing East German industries. However, Mayor Wolfgang Tiefensee's 1998 election ushered in new strategies targeting education, urban renewal, economic development, social integration, and environmental reclamation, spurring private enterprise growth and investment.

Leipzig refocused its economy on five high-growth potential business clusters – Healthcare & Biotech, Logistics, Media & Creative Industries, Automotive & Suppliers, and Energy & Environment – which have driven employment growth since 2005. The city has attracted large-scale 'lighthouse firms' whilst maintaining a majority of SME employers known as 'The Mittelstand.'

Thanks to Leipzig's recovery plan, the economy doubled in size since 2000, totalling EUR 28 billion in 2023. Following a slight decline as a result of the coronavirus crisis, the economy is expected to almost double again and reach EUR49 billion by 2040. At the same time, the average GDP per capita, a proxy for the standard of living in the city, is expected to reach EUR75,602 by 2040, a total increase of 231% from the year 2000.

Education has been a cornerstone in Leipzig since the establishment of the University of Leipzig in 1409. As the second oldest university in Germany and one of the oldest globally, it has had distinguished professors like physicist Werner Heisenberg and Nobel Prize-winning chemist Wilhelm Ostwald. Notable alumni include former German Chancellor Angela Merkel, writer Johann Wolfgang von Goethe, and nine Nobel laureates. The urban campus, spread across 38 locations, features its main buildings on the original site, housing three museums and one of Europe's oldest botanical gardens.

Leipzig is also home to six universities of applied sciences and over 150 research institutes and clinics, including the specialist Heart Centre Leipzig and the IZI Fraunhofer Institute for Cell Research and Immunology. Alongside the Academy of Fine Arts—one of Germany's oldest art schools—the city accommodates approximately 40,000 students living and studying in Leipzig today.

Leipzig's thriving economy and ongoing population growth are the main drivers of its housing market. The city is Germany's fastest-growing in terms of population, with 653,870 residents (+6.1%) expected to be living in the city by 2040.

However, housing supply has not kept pace with the expanding population. Since 2000, the population in Leipzig grew by over 136,000 residents needing approximately 80,500 housing units, but only 58,400 were added during that time. If the current construction rate continues, there may be an undersupply of over 8,333 units by 2040.

Supply constraints stem from slow planning approval processes, limited construction sector capacity, and land scarcity. With demand skyrocketing and supply lagging, Leipzig's vacancy rate has dropped from 12% in 2011 to 2% today. This excess rental demand, combined with sustained economic growth, has pushed up house prices and rents.

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Leipzig: The New Investment Hotspot

In the face of economic challenges, Leipzig's housing market stands out as a beacon of resilience, showcasing positive trends even as other cities grapple with uncertainties. The city's rental market has experienced a dynamic surge, with the median monthly rents escalating across all segments on average of 11.1% in 2023. This growth is even more […]

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As demand surges and supply struggles to keep pace, Leipzig's vacancy rate has plummeted from a high of 12% in 2011 to a mere 2% today. Coupled with ongoing economic growth, house prices and rents have grown significantly. Nonetheless, with prices remaining lower than in Berlin, Leipzig continues to be a popular entry-level choice.

It's challenging to determine the single best city to invest in real estate in Germany, as investment potential depends on various factors such as property prices, rental yields, economic growth, and demographic trends. Some popular cities for property investments in Germany include Berlin, Munich, Frankfurt, and Leipzig.

Berlin, the capital, offers a vibrant and dynamic market with relatively affordable prices compared to other major German cities due to its reunification after the fall of the Berlin Wall. The city has become an iconic location for progression, art and culture, as well as operates as the centre for Government.

Munich's steady positive population growth of 12% over the last 10 years, together with the scarcity of living space in central residential locations and growing demand for smaller apartments, remain the drivers of the city's housing market.

Frankfurt, a major financial hub, has experienced substantial growth in recent years, attracting both domestic and international investors. Property prices are more moderate compared to Munich, with good potential for capital appreciation and rental income.

Leipzig has seen rapid population growth, a thriving economy, and increasing housing demand. With relatively lower property prices compared to other major cities and a strong rental market, Leipzig offers promising investment opportunities for the future.

The best city to invest in real estate in Germany depends on your investment goals and preferences. Each city presents its unique advantages and challenges.

For further information on where to invest, our team of experts is readily available to share their knowledge and resources. You can request our investment case by using our contact form, or feel free to submit any questions you may have, and we will be delighted to call you back and provide answers.

Germany presents an attractive property investment market, primarily due to its position as Europe's largest and most stable economy. Boasting a strong and resilient market, Germany benefits from low unemployment rates, robust economic growth, and a diverse industrial landscape. The country's reputation for economic strength attracts both domestic and international investors, resulting in a thriving and competitive real estate market.

Furthermore, Germany's extensive infrastructure, world-renowned education system, and high quality of life contribute to a growing population, particularly in major urban centres. This increasing demand for housing, coupled with the country's economic prowess, provides a solid foundation for property investment with the potential for capital appreciation and rental income.

According to recent research by Global Property Guide, the residential property (apartments) gross rental yield in Leipzig stands at 4.43%, while the average in Germany is 3.74%.

Yes, foreigners can buy property in Leipzig with the expressed purpose of renting it out. There are no specific restrictions on foreign property ownership in Germany, which allows international investors to participate in the city's real estate market.


Download our helpful guide on local laws, tax, mortgages, acquisition costs, lettings & management and more.

Our properties in Leipzig


22 Parkside


22 Parkside offers a modern selection of 16 one and two-bedroom apartments located in Leipzig’s lively Plagwitz neighborhood.

From eur 270,000

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Curey Park


Curey Park is a boutique residence consisting of 9 studios and one-bedroom apartments in Leipzig’s up-and-coming Lindenau neighbourhood.

From eur 148,000

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The Bowen


The Bowen is a boutique residence consisting of 9 newly refurbished studios and one-bedroom apartments in Leipzig’s Mölkau neighbourhood.

From eur 157,500

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