Future of living: falling real estate prices and rising rents in Saxony!

Future of living: falling real estate prices and rising rents in Saxony!

Real estate prices in the federal states of Saxony, Saxony-Anhalt and Thuringia have experienced a decline in recent years, but the Situation on the housing market is anything but rosy. According to a report by MDR , the prices for home are still unaffordable for many people. Martin Schatz, CEO of the Real Estate Association Mitte-Ost, emphasizes that many Germans want their dream of their own home, but the financial means are missing.

At the same time, rents continue to rise - despite a falling range of available apartments. This development is often attributed to reduced construction activity and the lack of political will to take the necessary steps to create more living space. In particular in the urban centers, demand is growing, while many rural regions, such as attractive towns on the S-Bahn line 5 between Halle and Leipzig, have to deal with falling prices.

demographic changes and building needs

An analysis of the Federal Institute for Building, Urban and Spatial Research (BBSR) shows that until 2045 only the cities of Leipzig and Dresden can expect population growth. In many counties in Saxony-Anhalt and Thuringia, however, considerable population losses are expected. For example, a decline of around 70,200 inhabitants is forecast in the Erzgebirge district, while losses of 60,900 and 52,000 can be expected in Zwickau and Mittelachsen.

Despite these negative demographic trends, the new building requirement remains, especially in Leipzig and Dresden. An annual requirement 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. In Saxony, 5,100 apartments, 2,000 in Thuringia and 1,400 in Saxony-Anhalt have to be built.

vacancies and market analysis

Another point that shapes the situation on the housing market is the high vacancy rate. According to MDR , the vacancies in Saxony are 8.8%, in Saxony-Anhalt at 8.1%. These are the highest values in Germany, while cities such as Hamburg and Berlin are only 2% vacancy as a pioneer in the housing market. This discrepancy shows that demand remains high in urban rooms, even if the construction sites are less active in rural areas.

In addition, the current market situation characterizes a continued economic weakness and increasing construction costs, which make many planned projects uneconomical. The report of The Property Post describes a cautious demand on the housing market, which is due to demographic changes, the lack of affordable living space and the move to urban areas. The forecasts show that rents will continue to rise, particularly in sought -after locations and that for first reliefs in 2024, average could even be almost € 19/m².