Aengevelt report confirms: Leipzig housing market remains under pressure – opportunities for investors
The Aengevelt City Report published each spring has once again attracted the attention of those involved in the Leipzig real estate market. What are the market trends? What is the situation regarding housing construction? How are prices developing? The Aengevelt Report is a key medium of analysis to aid building owners, investors and municipalities in their decision making. The findings of the current study are by no means new. Dr. Wulff Aengevelt bases his forecast for 2019/20 on the fact that by 2039 Leipzig will have “at least 29,500 more inhabitants than at present”. Leipzig currently has a deficit of 3,130 homes. In 2018 there were 4,000 building permits issued in the city, but just 2,376 homes were handed over. Construction activity was mostly focused on multi-storey buildings. This year should see the completion of 2,600 new homes. Dr. Aengevelt criticises the excessively long approval processes and recent policy decisions that do not contribute to the construction of new housing. There is also room for improvement regarding the building land on offer. In 2018 Leipzig had a shortage of 959 homes. However, the scarcity of housing is driving up prices. The average rent in Leipzig increased from 5.09 euro/m2 to 6.60 euro/m2 between 2013 and 2018. The subsequent conclusion: no change on the Leipzig real estate market. Clear opportunities still remain for investors, project developers and users.