{"id":2732,"date":"2020-11-13T06:23:38","date_gmt":"2020-11-13T06:23:38","guid":{"rendered":"https:\/\/www.ipglobal-ltd.com\/insights\/8-things-you-need-to-know-about-leipzigs-revival\/"},"modified":"2023-08-10T03:14:56","modified_gmt":"2023-08-10T02:14:56","slug":"8-things-you-need-to-know-about-leipzigs-revival","status":"publish","type":"insights","link":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/insights\/8-things-you-need-to-know-about-leipzigs-revival\/","title":{"rendered":"8 Things You Need To Know About Leipzig\u2019s Revival"},"content":{"rendered":"

Our specialty<\/span>\u00a0<\/span>lies in finding\u00a0<\/span>pockets of value\u00a0<\/span>on a<\/span> global scale<\/span>.\u00a0<\/span>But i<\/span>n times of\u00a0<\/span>world-wide\u00a0<\/span>uncertainty<\/span>, these are\u00a0<\/span>notably\u00a0<\/span>more challenging to s<\/span>ource<\/span>.<\/span><\/span><\/p>\n

Europe\u2019s strongest contender for crisis-resilience is, without<\/span>\u00a0a<\/span>\u00a0doubt, Germany. It has the largest\u00a0<\/span>economy\u00a0<\/span>in Europe<\/span>\u00a0at USD4 trillion<\/span>\u00a0<\/span>and operates as a<\/span>\u00a0renown<\/span>ed<\/span>\u00a0<\/span>safe-haven<\/span>\u00a0for investment.\u00a0<\/span>IP Global has been active in this market since 2008 and it<\/span>\u00a0ha<\/span>s proven to be\u00a0<\/span>a\u00a0<\/span>very fruitful<\/span>\u00a0venture<\/span> for our investors, who\u2019ve\u00a0<\/span>not only\u00a0<\/span>seen<\/span>\u00a0<\/span>strong capital appreciation but also achieved\u00a0<\/span>on average\u00a0<\/span>112% of <\/span>IP<\/span>\u00a0<\/span>G<\/span>lobal\u2019<\/span>s<\/span>\u00a0rental estimates<\/span> upon development completion<\/span>.<\/span>\u00a0It is with this<\/span>\u00a0experience<\/span>\u00a0that we are excited to announce\u00a0<\/span>our latest investment opportunity<\/span>\u00a0in\u00a0<\/span>the\u00a0<\/span>promising\u00a0<\/span>city<\/span>\u00a0of<\/span>\u00a0\u83b1\u6bd4\u9521<\/span>.<\/span>\u00a0<\/span><\/p>\n

Today, the booming economy and strong population growth underpin Leipzig\u2019s housing market. <\/span>The\u00a0<\/span>population<\/span>\u00a0has\u00a0<\/span>already\u00a0<\/span>increased by 24% since\u00a0<\/span>2000 and is\u00a0<\/span>expected to\u00a0<\/span>ri<\/span>se by a further 25% to <\/span>750,000 residents by 2035<\/span>, making it Germany\u2019s fastest growing city<\/span>.\u00a0<\/span>While demand for housing has\u00a0<\/span>expanded rapidly, housing supply has been slow to respond<\/span>\u00a0with a mere 13,510 units completed in the decade up to 2017.\u00a0<\/span>As demand soars and supply struggles to keep up, the vacancy rate in Leipzig has tumbled from as high as 12% in 2011 to as low as 2% today. This excess demand has put sustained upward pressure on house prices, with Leipzig being one of the few locations in Germany to experience double-digit growth in the year 2019.<\/span>\u00a0<\/span><\/p>\n

As we gear up to take advantage of this unique German market, let\u2019s explore Leipzig\u2019s background to better understand how this unique opportunity materialised.<\/span><\/p>\n

 <\/p>\n

8<\/span>\u00a0<\/span>Things You Need\u00a0<\/span>To<\/span>\u00a0Know About Leipzig\u2019s Revival<\/span>\u00a0<\/span><\/span><\/h4>\n
    \n
  1. Leipzig has a pioneering heritage dating back to the 14th century<\/a><\/li>\n
  2. Leipzig is in the midst of a revival which began in the late 90\u2019s<\/a><\/li>\n
  3. Leipzig has attracted some prestigious names in business and is fostering a new start-up scene<\/a><\/li>\n
  4. Leipzig\u2019s economy is already twice the size it was in 2000 and is forecast to continue rising at an explosive rate<\/a><\/li>\n
  5. Leipzig, being in the geographical centre of Europe, continues to be a renowned hub of connectivity<\/a><\/li>\n
  6. Leipzig is home to the second oldest university in Germany and continues to champion a high calibre of educational offerings<\/a><\/li>\n
  7. Leipzig has a rich cultural history, particularly in musical arts<\/a><\/li>\n
  8. Leipzig\u2019s sporting success in recent years, embodies the revival of the city as a whole<\/a><\/li>\n<\/ol>\n

     <\/p>\n

    1. Leipzig has a pioneering heritage dating back to the 14th Century<\/h3>\n

    \"iStock-471560217\"<\/p>\n

    Located 160km south of Berlin, the city of Leipzig is situated at the confluence of two great continental trade routes, the east-west Via Regia and the north-south Via\u00a0<\/span>Imperii<\/span>. Leipzig therefore became\u00a0<\/span>a flourishing<\/span>\u00a0trad<\/span>e<\/span>\u00a0centre and economic hub in the 14<\/span>th<\/span>\u00a0century, and during this time developed a rich culture and leading educational role within Germany.\u00a0<\/span>T<\/span>he University of Leipzig<\/span>, founded in 1409,<\/span>\u00a0is the second oldest university in Germany and one of the oldest in Europe.<\/span>\u00a0<\/span><\/p>\n

    Leipzig quickly became a hub of innovation, giving rise to the world\u2019s first daily newspaper published in 1650. The first high speed printing press in Germany was later invented here in 1829, along with the introduction of steam<\/span>-<\/span>powered production machines which revolutionised the textile industry. At the forefront of business and technological change, the first long distance railway line in Germany was completed between Leipzig and Dresden in 1838. This laid the foundations for Leipzig\u2019s industrial development, and by 1915 Leipzig Central Station was the largest rail station in Europe.\u00a0<\/span>\u00a0<\/span><\/p>\n

    Leipzig was one of Europe\u2019s fastest growing cities at the end of the 19<\/span>th<\/span>\u00a0century, and by 1933 was the fourth largest city in Germany.\u00a0<\/span>It<\/span>\u00a0was relatively unscathed by the Second World War compared to the neighbouring city of Dresden, and therefore became the industrial production centre of the communist-run German Democratic Republic\u2019s (GDR) economy. In the 1980\u2019s Leipzig became the centre of a peaceful protest movement against the GDR\u2019s policies, such as the erection of the Berlin Wall in 1961. These peaceful protests culminated with the Monday Demonstrations in 1989 which are widely credited as accelerating the fall of the\u00a0<\/span>B<\/span>erlin\u00a0<\/span>W<\/span>all and paving the way for German unity.<\/span>\u00a0<\/span><\/p>\n

    2. Leipzig is in the midst of a revival which began in the late 90\u2019s<\/h3>\n

    The 1990\u2019s were a difficult period for Leipzig. After the fall of the Berlin Wall and German Reunification, many former communist-era East German industries collapsed<\/span>. This<\/span>\u00a0resulted in severe job losses and depopulation in Leipzig as many people migrated to West Germany. The outlook appeared quite bleak, however with the newly elected Mayor Wolfgang\u00a0<\/span>Tiefensee<\/span>\u00a0in 1998 came renewed hope for the city. New strategies focusing on education, urban renewal, economic development, social integration and environmental reclamation were considered the key to renewed growth of private enterprise and investment.\u00a0<\/span>\u00a0<\/span><\/p>\n

    Leipzig reinvented and refocused its economy on five key business clusters, selected as promising industries with future high-growth p<\/span>otential. These five key clusters which have experienced the highest levels of employment growth since 2005, form a robust platform for the diverse economy to innovate and grow sustainably.<\/span><\/p>\n

    <\/p>\n

    \u00a0<\/span>\u00a0<\/span><\/p>\n

    3. Leipzig has attracted some prestigious names in business and is fostering a new start-up scene<\/h3>\n

    \"iStock-472120855\"<\/span>The five key clusters have proven highly successful since their creation<\/span>.<\/span>\u00a0Better infrastructure and vigorous support of the new industry focus has aided the city in attracting prestigious \u201clighthouse\u201d firms such as Porsche, BMW,\u00a0<\/span>DHL\u00a0<\/span>and Amazon. These firms act as beacons for Leipzig\u2019s economic re<\/span>vival<\/span>\u00a0and growing global status.<\/span>\u00a0<\/span><\/p>\n

    A start-up scene is materialising in the city too, attracting many founders with its high quality of life and relatively low costs compared to other cities. Numerous incubators, accelerators, and co-working spaces provide entrepreneurs with business premises, expertise, and high-quality talent creating the perfect environment in which start-ups can flourish. There are currently an estimated 250 start-ups operating in Leipzig focusing on a range of sectors such as e-commerce, big data, energy infrastructure and smart mobility. Leipzig currently ranks as the 5th strongest start-up hub in Germany, and 117<\/span>th<\/span><\/span> globally -having jumped 173 places in a single year.<\/span>\u00a0<\/span><\/p>\n

     <\/p>\n

    4. Leipzig\u2019s economy is already twice the size it was in 2000 and is forecast to continue rising at an explosive rate<\/h3>\n

    As a result of Leipzig\u2019s successful\u00a0<\/span>strategy<\/span>, the economy has doubled in size since 2000, totalling EUR22 billion as of 2019.\u00a0<\/span>After<\/span>\u00a0a slight decline as a result of the coronavirus in 2020, the economy is expected to increase by further 75% and reach EUR37 billion by 2035. At the same time, average GDP per capita has risen 62% since 2000, reaching over EUR64,000 as of 2019. After a slight dip in 2020, GDP per capita is expected to increase to EUR108,800 by 2035, an increase of 75%.<\/span>\u00a0<\/span><\/p>\n

    <\/span><\/p>\n

    As Leipzig\u2019s economy continued to flourish, 64,000 extra people joined the workforce resulting in the unemployment rate falling from a high of almost 21% in 2005 to 5% 2019. The unemployment rate is forecast to rise slightly in 2020 to 6.2% due to the coronavirus before swiftly returning to its pre-crisis full-employment level in the following years. At the same time, disposable incomes have increased from EUR25,700 in 2000 to EUR36,600 in 2019<\/span>\u00a0(+<\/span>42%<\/span>)<\/span>. While disposable income is also expected to drop slightly in 2020, it is expected to rebound swiftly and continue rising to hit EUR59,300 in 2035, an increase of 131% since 2000.<\/span>\u00a0<\/span><\/p>\n

     <\/p>\n

    5. Leipzig, being in the geographical centre of Europe, continues to be a renowned hub of connectivity<\/h3>\n

    \"leipzig,<\/span>Leipzig central station is in the middle of the Central German Railway Network and currently sees an average of 60,000 commuters per day. In January 2020, the German government announced a record breaking EUR86 billion investment\u00a0programme\u00a0for the national rail network. <\/span><\/p>\n

    The decision was based on Germany\u2019s commitment to reduce transport sector CO2 emissions by up to 42% by 2030. The program aims to see regular high-speed connections operating between larger cities, with long-distance rail passengers increasing from 148 million in 2018 to 260 million (+76%) by 2030.<\/span>\u00a0<\/span><\/p>\n

     <\/p>\n

     <\/p>\n

    Leipzig Public Transport Network<\/span><\/span><\/strong><\/p>\n

    With over 515 tram stops spread across the city, Leipzig boasts Germany\u2019s second-largest tram network which services the city centre every 2-3 minutes. Alongside the bus network which encompasses 556 stops, the public transport network spans over 955 km across the city. In 2018, over 156 million passengers used tram and bus services in Leipzig, an increase of 400,000 on the previous year. The Leipzig Transport Authority continues to improve and expand its services, investing EUR30 million in 2018 alone.<\/span>\u00a0<\/span><\/p>\n

     <\/p>\n

    6. Leipzig is home to the second oldest university in Germany and continues to champion a high calibre of educational offerings<\/h3>\n

    \"iStock-1054750664\"<\/span><\/p>\n

    Education has been a focal point in the city of Leipzig since the foundation of the University of Leipzig in 1409.\u00a0<\/span>As<\/span>\u00a0one of the oldest\u00a0<\/span>universities\u00a0<\/span>in Europe, former professors\u00a0<\/span>include<\/span>\u00a0the\u00a0<\/span>globally renowned<\/span>\u00a0physicist Werner Heisenberg and Nobel Prize winning chemist Wilhelm Ostwald. The university has also produced world-famous alumni such as writer Johann Wolfgang von Goethe, and philosopher Gottfried Wilhelm Leibniz.\u00a0<\/span>\u00a0<\/span><\/p>\n

    Leipzig also has 6 universities of applied sciences, and approximately 150 research institutes and clinics including the specialist Heart Centre Leipzig, the IZI Fraunhofer Institute for Cell Research and Immunology, the Max Planck institute, the Media <\/span>C<\/span>ampus, and BIO CITY LEIPZIG.\u00a0<\/span>Founded in 1764, the Academy of Fine Arts Leipzig is one of Germany\u2019s oldest art schools\u00a0<\/span>specialising<\/span>\u00a0in fine arts, graphic design, photography and new media art. It is home to two world-renowned modern art movements, the \u2018<\/span>Leipziger<\/span>\u00a0Schule\u2019 and the \u2018Neue\u00a0<\/span>Leipziger<\/span>\u00a0Schule\u2019.\u00a0<\/span>There are approximately 40,000 students living and learning in Leipzig today.<\/span>\u00a0<\/span><\/p>\n

     <\/p>\n

    7. Leipzig has a rich cultural history, particularly in musical arts<\/h3>\n

    Leipzig is one of the most vibrant and unique cites in Germany today.<\/span>\u00a0The musical heritage is truly extraordinary with an abundance of great composers such as Johann Sebastian Bach, Clara and Robert Schumann, and Richard Wagner. The city also has a tradition of hosting great musical performances, with the famous Gewandhaus Orchestra alone attracting over two hundred thousand people to its concerts each year. They also perform Bach cantatas with the world-renowned St. Thomas Boys Choir \u2013 Leipzig\u2019s oldest cultural asset, founded in 1212 - in St. Thomas Church where Bach once worked and is now laid to rest.<\/span>\u00a0<\/span><\/p>\n

     <\/p>\n

    8. Leipzig\u2019s sporting success in recent years, embodies the revival of the city as a whole<\/h3>\n

    \"iStock-486361122\"RB Leipzig was founded in 2009 when the Red Bull company purchased the playing rights of the fifth-tier side SSV\u00a0Markranst\u00e4dt\u00a0with the intent of advancing the new club to the top-flight Bundesliga. In May 2016 this became a reality with RB Leipzig securing their spot for the 2016-17 season. <\/span><\/span><\/p>\n

    One year later, their meteoric rise continued with the team capturing a place in the 2017-18 UEFA Champions League. Red Bull has invested over EUR100 million in the club thus far, while match attendance numbers have sky-rocketed from 2,000 per game in 2009 to over 43,000 today. <\/span><\/span><\/p>\n

    Annual turnover for the club jumped 82% to EUR218 million in 2017 due to the promotion to the Bundesliga. The club\u2019s income has continued to grow thereafter to EUR268 million for the 2018\/19 season, putting RB Leipzig in 4th\u00a0position in income terms after Bayern Munich, Borussia Dortmund, and FC Schalke.\u00a0<\/span><\/span><\/p>","protected":false},"excerpt":{"rendered":"

    Our specialty\u00a0lies in finding\u00a0pockets of value\u00a0on a global scale.\u00a0But in times of\u00a0world-wide\u00a0uncertainty, these are\u00a0notably\u00a0more challenging to source. Europe\u2019s strongest contender for crisis-resilience is, without\u00a0a\u00a0doubt, Germany. It has the largest\u00a0economy\u00a0in Europe\u00a0at USD4 trillion\u00a0and operates as a\u00a0renowned\u00a0safe-haven\u00a0for investment.\u00a0IP Global has been active in this market since 2008 and it\u00a0has proven to be\u00a0a\u00a0very fruitful\u00a0venture for our investors, who\u2019ve\u00a0not […]<\/p>","protected":false},"featured_media":2747,"parent":0,"menu_order":0,"template":"","location":[149,152],"insights_type":[127],"series-title":[],"class_list":["post-2732","insights","type-insights","status-publish","has-post-thumbnail","hentry","location-germany","location-leipzig","insights_type-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/insights\/2732","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/insights"}],"about":[{"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/types\/insights"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/media\/2747"}],"wp:attachment":[{"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/media?parent=2732"}],"wp:term":[{"taxonomy":"location","embeddable":true,"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/location?post=2732"},{"taxonomy":"insights_type","embeddable":true,"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/insights_type?post=2732"},{"taxonomy":"series-title","embeddable":true,"href":"https:\/\/www.ipglobal-ltd.com\/zh-hans\/wp-json\/wp\/v2\/series-title?post=2732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}