Sales on the Saxon real estate market collapse

The real estate market in Saxony recorded significant declines in transactions and sales in the 2023 reporting year. According to the state's latest property market report, the number of purchase contracts fell to around 35,000 - around a quarter less than in the previous year. The monetary turnover fell by around five billion euros to 6.5 billion euros. The declines were particularly sharp in Dresden, Leipzig and Chemnitz, where sales slumped by almost half.

Economic and political uncertainties weigh on the market

"The difficult economic and political factors as well as the effects of the Covid pandemic and the war in Ukraine continue to influence the German real estate market," said Matthias Kredt, Chairman of the Higher Expert Committee for Property Values in Saxony. Nevertheless, there are signs of a sideways movement in the key figures for 2024, at least for the independent cities.

For the first time since 2011, the average building land price for individual residential construction fell by around 15 percent. At the same time, however, prices for first-time home ownership rose. In Dresden, an average of EUR 5,981 per square meter of living space was achieved - an increase of 8 percent compared to 2022.

Leipzig leads in per capita sales, despite a drastic decline

In 2023, real estate sales per capita amounted to EUR 2,360 in the independent cities and EUR 1,240 in the districts. Leipzig recorded the highest per capita turnover at EUR 2,600, albeit also in sharp decline (down 52%).

In the reporting years 2022 and 2023, the real estate market was characterized by persistently high demand for housing, particularly in the urban centers of Leipzig, Dresden and Chemnitz. However, rural regions are also increasingly benefiting, as home office opportunities are boosting interest in living in the countryside.

Analysis based on expert committees

The property market report is compiled annually by the Higher Expert Committee and offers a neutral source of information for buyers, sellers and owners of real estate. The analysis is based on data from the 13 regional expert committees.