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 remarkable when compared to other major German cities, with only Berlin surpassing Leipzig's rental increase at +16.7%.
Leipzig's housing market remains one of the more affordable options (54% more affordable than the average Berlin PSM), contributing to a considerable decrease in the vacancy rate. The positive momentum extends to the new-build segment, with purchase prices for new buildings surging by an impressive 9.2% compared to the previous year, significantly above the five-year average of 7.3%. This growth underscores Leipzig's appeal as a thriving real estate market, even amid broader economic considerations.
Leipzig's growth story doesn't end there—population expansion remains a key factor. Despite Saxony's shrinking population, Leipzig experienced a remarkable growth, reaching around 606,910 in 2022 (+27% since 2000). This surge in population, coupled with a low number of new homes built in 2022 and 2023, has created substantial pressure in the housing market.
To meet this growing demand, Leipzig is embarking on transformative urban developments, exemplified by the ambitious project at Eutritzscher Freiladebahnhof—the former freight railway station. Encompassing 25 hectares, this development is poised to introduce a remarkable 2,400 homes, with construction scheduled to commence in 2024. Initiatives of this magnitude not only address the pressing housing needs but also promise to elevate the cityscape, particularly in the northern regions of the city center. These forward-looking developments are set to enhance the overall quality of life in Leipzig, reflecting the city's commitment to progressive urban planning and community well-being.
Find more information about our current active projects in Leipzig here.
Sources: Oxford Economics, JLL
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