Residential City Profile

Housing Market Leipzig

When your Home is also your Investment

Consider the location factors of the property. In order to guarantee a long-term value development of a property it is necessary to understand the already known data of the location. We provide you with this important data at the level of each district of the city and update it every month.

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In which way can this data influence your investment decision?

Get a more detailed overview of the city you are interested to invest. Rather than just looking at the city as a whole, go that bit deeper. Look at the different districts, look at the property prices and how they have been impacted by changes i.e gentrification that has taken place in the last years. This could be a good indication of the impact on the prices for the future.

A good indication of how realistic the property prices are, can be gauged on how long properties stay on the market before being sold. When properties are slow to sell , this could indicate room for negotiation! When properties are moving quickly, then you have to move quickly too!

Macroeconomic data can also provide some valuable information, particularly when you are looking at it from a ‘supply /demand’ perspective. Comparing the number of households in the district and the number of housing units available, is a good indicator how the property prices could develop. When the demand is higher than the number of properties available on the market, prices will rise.

The age of the inhabitants in a district will certainly have an effect on the property prices. Districts with a younger age group, those finishing their studies starting new jobs, starting families etc create a demand for cafes , restaurants, entertainment outlets, kindergartens, organic markets etc enabling new businesses for flourish. This in itself creates a further demand as more people want to be part of this and so, is then reflected in the property prices. Back to the supply/demand.

When a district has a healthy employment rate, therefore a stronger purchasing power, this will undoubtable have a more positive effect on the future potential for property.

The average net income in a district to some degree can be related with the employment status, but of course, a lower net income district with a high employment rate with young residents could also become a future area for development. Sometime we also have to take a longer term view.

By considering the number of people per household in a district, this will help determine which district best match with your requirements and investment strategy. Buying a 3 room apartment for a family could also work well for student sharing accommodation, if there is a high student presence in that district and the demand is there.

City Report Leipzig

Since 2014, we have had the pleasure of assisting JLL clients and advisors in finding the best possible financing for their investment projects in Germany.
MLP Leipzig

Dynamic increase in construction activity

Leipzig’s population continues to grow extremely dynamically. Next to Frankfurt and Berlin, Leipzig has the highest population growth of the Big 8 cities, at +7.2% between 2014 and 2018. The strength of demand for housing can be attributed not only to dynamic develop- ment of Leipzig’s labour market, but also to the fact that the housing cost burden is still relatively low compared to other locations such as Berlin, Hamburg and Frank- furt. This increase in demand for housing has led to a substantial reduction in the volume of vacancies and the shift towards excess demand, coupled with an enormous reduction in refurbishment potential, is also reflected in price trends in the residential market. To ensure that there is sufficient affordable housing in the future, the City Council is focusing on new residential construction in addition to implementing housing policy measures such as rental price ceilings, official rental price indices and neighbourhood protection regulations. While an average of just under 940 new apartments were built between 2013 and 2017, this figure had already risen to around 1,930 by 2018. Moreover, at 3,545, the number of building permits issued in 2018 was around three times higher than in 2013. While construction activity is cur- rently concentrated in central locations to the southeast and southwest of the CBD (including several projects at Lindenauer Hafen), numerous residential projects are planned for the northeast of the city. Leipzig has vast ar- eas of unused commercial land with the potential of large-scale residential development. In addition to the potential availability of sites in the city centre such as the former railway sidings at the Eutritzscher Freilade- bahnhof, there are large areas of land available for devel- opment, especially in the northwest of the city. Given the available land reserves, construction activity can be ex- pected to remain high in the coming years.

Stagnation in the top segment and in new-build rents

Despite the strong rental price rises of recent years, the pace of rental growth in Leipzig has slowed down again recently. Asking rents rose by just 1.4% to an average of €7.25/sqm/ month in the second half of 2019 compared to the corre- sponding period of the previous year, significantly below the 5-year average growth rate of +6.2%. The lowest rental price segment (cheapest 10% of the rental apartments on offer) recorded the highest rise of 4.1% compared to the previous year, while the new-build and prime segments re- corded slight declines (of -2.6% and -2.0%, respectively). Although a certain level of saturation has been reached in the prime segment after years of strong rent rises, the catch- up process continues in the lower price segments and pe- ripheral locations. Locations in the northeast and northwest recorded the most significant rental price growth. Stronger rental growth is expected in the southeast in the future.

Prices for owner-occupied apartments in the prime and new-build segments weakened considerably

While momentum in the rental market in Leipzig is slowing down, it remains strong in the market for condominium apartments, although a slight slowdown is also being ob- served here. The average purchase price for a condominium apartment is €2,260 per sqm, around 8.7% higher than in the same period last year. With an increase of more than 15.4% compared to 2018, the strongest purchase price rises were observed mainly in the lowest purchase price seg- ments (cheapest 10% of the apartments on offer). Con- versely, at around +0.4% and +3.3% respectively, the growth in purchase prices in the prime and new-build segments was much lower (2018: +8.6% and +9.6% respectively) and below the 5-year average growth rates (+8.9% and +9.6%). There was a mixed picture in terms of price growth across the city. While strong purchase price rises were recorded in the city centre and northeast for example, prices tended to stagnate in the northwest. High local variations in price levels and shifts in demand continue to affect momentum in the market for condominium apartments in the city.

Housing Market Leipzig

Despite the continued strong growth of Leipzig’s population which exceeded 600,000 in 2018, the number of new dwellings completed every year in the city has remained very low in recent years at less than 1,000. Leipzig has experienced the greatest growth among the Big 8, with its population growing by 7.2% between 2014 and 2018. As a result of this population influx, the vacancy rate in the housing market has now fallen to below 2%. This makes Leipzig's unique housing situation a good investment opportunity and definitley a top contender when it comes to rising housing markets.

Find the best Mortgage in Leipzig now

We have developed a mortgage calculator, that shows you the best terms and conditions to suit both, your financing requirements and personal situation in just a few minutes. Unlike most other mortgage providers for the German market, we request no personal data, enabling you to remain private and with anonymity. Please go ahead start the process of your property financing. 

Our service is free of charge for you. As it is common that mortgage brokers in Germany are getting paid by the banks.

Our Premises in Leipzig

Your German Mortgage Team in Leipzig

For more than 25 years we have been helping clients from all over the world to implement their real estate financing in Germany. We put our market knowledge at your disposal and guarantee a smooth process of your financing from the first contact to the disbursement of the loan.
Rico Becker

Rico Becker

Senior Financial Consultant

Rico is a globetrotter and loves to get in contact with people from all over the world. Take advantage of his excellent English language skills to get his support for all your property financing questions. Rico knows the real estate market of Leipzig and helps you to realise your mortgage fast and smoothly.

Alexander Weber

Alexander Weber

Senior Financial Consultant

Like Rico, Alexander also likes to travel to the most remote regions of the world. With his excellent skills in English, he will help you understand all the topics related to your real estate financing.

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