Leipzig, a city with a more than 1,000 years old history, is facing exciting developments. The largest city of the state Saxony is rejuvenating itself and attracting a more youthful and dynamic population than ever before. Its population is growing, its economy is booming, and its citizens’ purchasing power is rising steadily.
Between 2007 and 2017, population grew by 13% to 578,000 and could reach over 722,000 by 2030, Leipzig's city hall predicts. Its housing vacancy rate dropped to less than 3 percent from more than 10 percent in 2008. Leipzig is growing faster than any other German city. It is already facing a housing shortage, and the situation is only going to become worse over the next few years. This, at the same time, also creates great investment opportunities for real estate developers.
But what makes Leipzig so appealing? Several top industry players have settled here, including Porsche and BMW, DHL, Amazon and eBay. The city's university delivers a pool of skilled, young workers and unemployment rate has dropped by half to less than 7% over the last decade. The number of people with an immigrant background grew from 49,323 in 2012 to 77,559 in 2016, and now they account for 13.3% of the city's population.
Real estate prices in Leipzig have increased slowly but steadily in recent years.The prices for existing residential apartment units has increased by 6.7% since 2016 to an average of €2,030/sqm. Apartments in some of the top locations can even go as high as €4,500/sqm.
The average price of single-family homes also increased by more than 8.1% compared to 2016, with property sellers asking for €377.755. If you are interested in purchasing a Gründerzeit villa, you could find some really beautiful items in the Schleussig district (south-west of the city center), e.g. including four bedrooms, two bathrooms on a 920 sqm plot with a terrace and garage, for an asking price of €1.26 million.
Rental prices in Leipzig are still quite low compared to other German and European cities, ranging from 5€ to 15€/sqm. Rental prices increased by 5.4% and reached an average of €7.00/sqm/month. By comparison, prices in central London can be well above €47/sqm.
According to a forecast by the city council, there is a need for approximately 60,000 new apartments by 2030, which translates to roughly 4,000 new apartments per year. But fewer than 1,000 new apartments were actually completed in 2016. It is likely that the gap between supply and demand will continue to widen in Leipzig in the foreseeable future. This outlook together with the fact that Leipzig offers a high quality of life at relatively low cost will make it an attractive investment target for many real estate investors.
We work with multiple property listing pages and real estate agents to help you find a home. For instance, if you’re planning to buy real estate in Leipzig, neubau kompass can show you many great new build properties on their website!
Germany's strong economic growth has resulted in price increases across German cities: On average the prices doubled in the last 10 years. Rents also follow the house price development in Germany: the average increase amounts to 50% between 2008 and 2018.
In Leipzig, the average annual property prices per square meter has increased from €1,800 in 2008 to €3,660 in 2018. Meanwhile, the average rent prices per square meter also increased €7.60 from in 2008 to €11.15 in 2018.
LoanLink is a German mortgage broker specialized in property market in Leipzig. We also help expats and international investors get a mortgage. Our highly professional Leipzig mortgage broker team provides excellent advices in English, Chinese, Russian and German. Moreover, we leveraged advanced algorithm technology to find the best mortgage rates from over 400 regional and global German banks.
Our smart online mortgage platform is available round the clock to advise you in every step of the German mortgage process. For instance, you can use our house loan calculator to check your loan amount, monthly repayments and property purchase fees. What’s more, we offer service in multiple languages and is completely free of charge.
LoanLink is registered and controlled by the surveillance authority in Leipzig.
Can’t find what you’re looking for here? We’ve got more answers on our FAQs page.
When buying a property in Leipzig, you always have to pay for additional fees, such as real estate tax, real estate agent fees, notary costs etc. In Germany, real estate purchase fees may be up to 15% of the property’s purchase price. Similar to a downpayment, purchase fees should be covered by the buyer’s own equity instead of a bank mortgage. In Leipzig, the approximate additional purchase fees are as follow:
Real estate tax: 3.5%
Real estate agent fees: 3.57%
Notary costs: 2%
Total costs: 9.07%
For more information in regards to the additional fees you would pay when buying a property in Leipzig, please check out our mortgage calculators for a more accurate calculation.
First, the exact amount of your deposit depends on if you live and work in Germany.
I live and work in Germany:
You can borrow up to 100% of the property price. Overall, your deposit should cover the purchase fees, which will depend on the property’s location in Germany. Usually purchase fees are between 5-15% of the property price. Such fees include: stamp duty, notary fees and real estate agent tax.
I do not work in Germany:
Generally, you can borrow up to 60% of the property price. So, your deposit should cover 40% of the property purchase price as well as the purchase fees (5-15% of property price). As shown above, these fees include stamp duty, notary fees and real estate agent tax.
LoanLink’s mortgage affordability calculator is tailored to buyers of different residency status to work out how much house they can afford in Berlin. By simply inputting a few numbers, you will find out your maximum affordability within seconds.
Altogether, the timeline depends on you. If you have all relevant documents ready the process can take only a few days. In case you want to be covered as fast as possible, please let us know. We have direct relationships to the credit departments of our partner banks and can accelerate the process.
As soon as you decide to buy, there are several good resources for locating a property in Germany. A few of the most common resources are the major residential real estate pages like immobilienscout24.de or immowelt.de.
Additionally, you can approach local real estate agents or the construction company. Also, please approach us. We have partners in Frankfurt, Berlin, Munich, Hamburg or Stuttgart who are ready to help.
Once you decide to purchase property in Germany, contact the LoanLink undefined Mortgage brokers via live chat, email or phone. Whenever you have a spare minute, you can also read our German mortgage blog to learn more.