Future of living: Falling property prices and rising rents in Saxony!

Future of living: Falling property prices and rising rents in Saxony!

Real estate prices in the federal states of Saxony, Saxony-Anhalt and Thuringia have fallen in recent years, but the situation on the housing market is anything but rosy. According to a report by MDR Home ownership prices remain unaffordable for many people. Martin Schatz, CEO of the Middle East Real Estate Association, emphasizes that many Germans want the dream of owning their own home, but lack the financial resources.

At the same time, rents continue to rise - despite a declining supply of available apartments. This development is often attributed to reduced construction activity and a lack of political will to take the necessary steps to create more housing. Demand is growing particularly in urban centers, while many rural regions, such as attractive towns on the S-Bahn line 5 between Halle and Leipzig, are struggling with falling prices.

Demographic changes and building needs

An analysis by the Federal Institute for Building, Urban and Spatial Research (BBSR) shows that only the cities of Leipzig and Dresden can expect population growth by 2045. However, significant population losses are expected in many districts in Saxony-Anhalt and Thuringia. For example, a decline of around 70,200 inhabitants is forecast in the Erzgebirgskreis, while losses of 60,900 and 52,000 are expected in Zwickau and Central Saxony.

Despite these negative demographic trends, the need for new construction remains, particularly in Leipzig and Dresden. An annual demand of around 1,600 apartments in Leipzig and 1,100 in Dresden is expected by 2030. This seems paradoxical, because demand is increasingly determined not only by the total population, but also by the increasing number of small households. 5,100 apartments have to be built every year in Saxony, 2,000 in Thuringia and 1,400 in Saxony-Anhalt.

Vacancies and market analysis

Another point that characterizes the situation on the housing market is the high vacancy rate. Loud MDR The vacancies in Saxony are 8.8%, in Saxony-Anhalt 9%, and in Thuringia 8.1%. These are the highest values ​​in Germany, while cities like Hamburg and Berlin are considered pioneers in the housing market with just 2% vacancy. This discrepancy shows that demand remains particularly high in urban areas, even if construction sites in rural areas are less active.

In addition, the current market situation is characterized by a persistent economic weakness and rising construction costs, which make many planned projects uneconomical. The report from The Property Post describes subdued demand in the housing market caused by demographic changes, the lack of affordable housing and the influx into urban areas. The forecasts show that rents will continue to rise, especially in sought-after locations, and could even reach an average of almost €19/m² for first occupancies in 2024.

Given these circumstances, it is clear that the housing situation in Saxony, Saxony-Anhalt and Thuringia represents a complex challenge - both for potential buyers and tenants. There is a great need for action and it remains to be seen how politics and the economy will respond.