Real estate market in Saxony declining

Saxony's real estate market clouded over last year. In 2022, a good 47,500 purchases were made with a volume of 11.53 billion euros, as the Higher Expert Committee reported in its annual report on the property market on Thursday. These were declines of 13 and 10 percent respectively. In contrast, there had been increases in the previous year. The reasons given for the declines were higher interest rates and construction costs as well as a sharp rise in consumer prices. The price trend for residential properties, for example, varies from region to region. In Leipzig and Dresden in particular, there is a high demand for housing with a sometimes scarce supply.

Despite negative influencing factors, the Saxon real estate market is robust and resilient, emphasized committee chairman Matthias Kredt. "However, the full extent of the persistently difficult economic environment will only become apparent with the market data for 2023, as the first half-year evaluations of the local expert committees already show."