Revamped Real Estate Report: Saxony's Market Slumps
Saxony's real estate scene took a turn for the worse last year. According to the Higher Expert Committee's annual report, a staggering 47,500 properties were purchased in 2022 at a total cost of 11.53 billion euros. A grim 13 and 10% decrease in deal count and value, respectively, were reported, contrasting the positive trends recorded in the previous year. The reasons for this downward spiral include escalating interest rates, construction costs, and inflated consumer prices.
The real estate market's landscape in Leipzig and Dresden, particularly, has brought about higher construction expenses. The greater demand for living quarters and the limited supply have pushed up construction costs within the Saxony real estate market.
Matthias Kredt, the committee chair, advocated for the resilience and adaptability of the Saxony real estate market in the face of these challenging economic conditions. The full extent of the impact, however, will only become apparent with 2023's market data, as suggested by initial evaluations conducted by local expert committees.
Despite these adversities, Leipzig and Dresden's residential property market continues to be subject to regional price fluctuations owing to demand-supply discrepancies.
In Dresden, real estate trends remain stable, with a slight uptick in demand. The average resold condominium purchase price has stayed close to the previous year's figure, while new apartment prices showed a slight decrease. In Leipzig, the office market witnessed a significant reduction in available space, leading to a rise in rent levels. Economic growth and industry development in the Saxony area, such as advances in software and microelectronics industries, have contributed to a dynamic and evolving real estate market.
Sources: 1. 2. 3.
