Living space requirements in Central Germany increases despite the population decline!

Living space requirements in Central Germany increases despite the population decline!

Sachsen-Anhalt, Deutschland - In Germany there is a clear trend: the real estate markets are in transition, and this has far -reaching consequences for buyers, tenants and investors. In East Germany in particular, the framework conditions change rapidly. The development is subject to various dynamic influences, which cannot be ignored in both urban and rural regions. The current analysis of [MDR] (https://www.mdr.de/nachrichten/Deutschland/wirtschaft/sachsen-thueringen-prefe-wohnen-miet-analysis-104.html) emphasizes that investors are faced with new challenges when buying single-family houses in rural areas.

The young generation in East Germany grows up in an environment that is characterized by a stable labor market situation. So far, many under 35 years of age have had no contact points with unemployment and should also feel little of it in the future. Nevertheless, the current predicted demographic developments throw a shadow on this rose: According to the BBSR, the population will go back drastically in many regions in Central Germany by 2045, in extreme cases by almost a quarter.

building requirement in the metropolitan areas

Despite this dark development, a considerable need for construction for new living space is determined. The cities of Leipzig and Dresden in particular are under pressure on housing construction. Leipzig will need around 1,600 new apartments annually by 2030, while another 460 units are required in the Leipzig district. 1,100 new apartments are to be built in Dresden annually, and 410 apartments per year is also seen in northern Saxony. Erfurt cannot lean back with an annual requirement of 400 new apartments.

How is real estate demand in rural regions? The picture is different. In rural, structurally weak areas there is a risk of a decline in real estate values, but the demand for new living space types changes. This is particularly evident through the demographic change, which will lead to an increase in the proportion of over 65-year-olds to around 28 percent by 2030. As reports Miamakler, this will also influence real estate prices in rural regions and could lead to a decrease of up to 20 percent.

urbanization adheres

The urban centers, on the other hand, experience a different dynamic. There, more and more people are drawn there, which ultimately drives the real estate prices further up. In the metropolitan regions such as Berlin, Munich and Frankfurt, an increase in values is forecast. Accordingly, the demand for suitable living and habitats in these cities will continue to be high. Haufe emphasizes that cities like Leipzig could grow up to 30.2 percent, while other regions have to fight with increasing vacancies and real estate.

Overall, it can be seen that the changes on the real estate market require intensive need for action due to demographic change and different developments in urban and rural regions. Investors and buyers should have a close eye on the special conditions of the respective regions and adapt their strategies accordingly in order to continue to benefit from the occasions on the real estate market in the future.