Urgent need for housing: tens of thousands of new apartments for Saxony!

Urgent need for housing: tens of thousands of new apartments for Saxony!

In the midst of demographic change, which poses major challenges for Germany, there is a dynamic real estate market. On July 16, 2025, MDR explains the prospects for investors, especially with regard to the purchase of family homes in the countryside. This shows that younger generations, especially those under 35, are growing into an era without unemployment. They have not had any experience with unemployment and are optimistic that this will continue in the future.

Nevertheless, the question of the future sales value of a house is not crucial as long as immediate consumption is concerned. Particular attention is being paid to metropolitan areas, where, despite a predicted population decline by 2045, a high need for new living space is recognized in many regions of central Germany. Leipzig needs around 1,600 new apartments per year by 2030, while 1,100 new buildings are required per year in Dresden and 460 new buildings per year in the Leipzig district.

Demographic developments and their consequences

Demographic change is not only evident in the big cities. Solyom highlights that the population in Germany currently consists of around 83.2 million people, with the birth rate of 1.58 children per woman being below the maintenance level of 2.1. At the same time, life expectancy will continue to rise, and by 2040 it is expected that there will be 23 million people over the age of 65, which corresponds to around 30% of the total population.

These changes also result in a growing demand for age-appropriate properties. Currently only 17% of apartments in Germany are barrier-free, which means that around 3 million apartments will have to be converted to make them age-friendly by 2035 in order to meet the increasing number of people in need of care. There are currently 4.1 million people in Germany who need care - this number could rise to up to 5 million by 2040.

Impact on the real estate market

As Mia Broker analyses, demographic change has a direct impact on the demand for housing types and locations. While metropolises such as Berlin, Munich and Frankfurt are experiencing an increase in real estate prices, rural areas are threatened with a decline in real estate values. In regions such as Görlitz, Suhl and Dessau, a population decline of 20 to 30 percent is expected.

The multitude of different factors in the real estate sector clearly shows that a reassessment of the demand for housing is urgently needed. Potential investors and project developers must adapt to the changes in order to meet the challenges of demographic change and at the same time take advantage of the opportunities arising from the demand for new living space.

Overall, the real estate market in Germany requires a good hand in order to be able to respond to demographic challenges. Future-oriented planning will be crucial in order to set the right incentives and provide the population with adequate housing.