7
Residential City Profile Leipzig | 1 st half of 2019 Published in August 2019 Leipzig
Residential City Profile
Leipzig | 1st half of 2019 Published in August 2019
Leipzig
Residential City Profile | H1 2019 2
Housing construction potential especially on brownfield sitesDespite the continued strong growth of Leipzig’s population which exceeded 600,000 in 2018, the number of new dwel-lings completed every year in the city has remained very low in recent years at less than 1,000. Leipzig has experi-enced the greatest growth among the Big 8, with its popu-lation growing by 7.2% between 2014 and 2018. As a result
of this population influx, the vacancy rate in the housing market has now fallen to below 2%. The City of Leipzig is reacting to this trend by shifting its principal focus to new residential construction to meet the growing demand for living space. Where fewer than 900 building permits were granted in 2014, the figure for 2018 was 3,550. The number of new residential completions was also significantly higher in 2018 than in 2017 at 1,928. Large disused industrial sites in particular offer the opportunity to create contiguous new development zones. Examples include the Lindenauer Bahnhof and Eutritzscher Freiladebahnhof (former railway holdings). There is also potential land available at the Bay-erischer Bahnhof railway station. Considering the rapid in-crease in the number of building permits granted and exis-ting space potential, construction activity is expected to remain high in the coming years. The reduction in the va-cancy rate, absorption of renovation potential and strong expansion in new residential construction are also reflec-ted in price trends in the city’s housing market. Various housing policy instruments were adopted by the City of Leipzig in 2018 to guarantee the provision of sufficient af-fordable living space over the coming years. These include the tightening of rental cap limits: for example, existing rents may only increase by a maximum of 15% within three years from 2020. The second approach is the introduction of a qualified rental index and enforcement of neighbour-hood protection regulations in some parts of the city to prevent disproportionate modernisation programmes.
Selected developments under constructions
Name Location Residential units Completion date
Lindenauer Hafen Schönau approx. 500 2020
König-Albert-Residenz Gohlis/Möckern approx. 350 2020
Quartier Siebengrün Gohlis-Mitte approx. 350 2019
Wohnquartier Heeresbäckerei Gohlis/Möckern approx. 300 2019
Wohn- und Geschäftsquartier Prager Straße Reudnitz-Thonberg approx. 180 2021
Housing market Leipzig
Source: Thomas Daily, JLL; Status: July 2019
Source: destatis, BBSR housing forecast 2015, JLL; Status: July 2019
Housing supply and demand for new buildings Leipzig
Leipzig
Residential City Profile | H1 2019 3
Catch-up process in the lower rental price categories and peripheryDespite strong rent rises in recent years, the pace of rental growth in Leipzig has slowed down again recently. At €7.10/sqm/month, the average rental price level in the first half of 2019 was around 1.4% above the previous year’s figure, yet significantly below the 5-year average growth rate of 5.4% per annum. There was a stagnation in prime (€10.00/sqm/month) and new-build rents in particular, while the lower rental price categories continued to show strong growth of around 4.6%. Although a certain level of saturation has been reached in the prime segment after years of strong rent rises, the catch-up process continues in the lower ren-tal price categories and peripheral locations. In an analysis of submarkets, there have been strong rental price rises, especially in the peripheral districts to the northeast and south. However, given the rapid reduction in the volume of vacancies and the dynamic population growth, significant rental price rises can be expected across all rental price categories over the coming years.
Source: JLL, empirica systeme; Status: July 2019
Source: JLL, empirica systeme; Status: July 2019
Source: JLL. empirica systeme, IDN immodaten; Status: July 2019
Rental price bands for listed apartments Leipzig
Distribution of rental listings by price group
Development of rental prices
Leipzig
Residential City Profile | H1 2019 4
Alt-WestMitte
Nord
Nordost
Nordwest
Ost
SüdSüdost
Südwest
West
ìA 14
ìA 9
ìA 14
ìA 9
ìA 14
ìA 14
ìA 38
ìA 9
ìA 38
ìA 38
ìA 14
ìA 38
ìA 14
< 6.00
6.00 < 7.00
7.00 < 8.00
8.00 < 9.00
>= 9.00
Rent LevelAverage in €/sqm/month on postcode level
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
0 5 10 Kilometers
Water Area
Green Area
Industrial orTraffic AreaOther Area
Asking rental prices Leipzig
Leipzig
Residential City Profile | H1 2019 5
Highest price rises in the market for condominium apartments among the Big 8 There is sustained momentum in the market for condomi-nium apartments in Leipzig, although a slowdown is being observed. The average purchase price for a condominium apartment has reached €2,150 per sqm, 5.9% more than during the same period last year. Leipzig remains the top location among the Big 8 in terms of purchase price growth, recording a 5-year average of around 11% and with an increase of more than 19% compared to the previous year, the strongest price rises were mainly observed in the lowest purchase price categories. Conversely, prime purchase prices (€4,250 per sqm) increased by 4.7% com-pared to the previous year, significantly below the 5-year average. Due to the reduction in vacancies, demand is shifting increasingly to peripheral and previously relatively inexpensive neighbourhoods which are now catching up in terms of price trends. Particularly strong increases can be observed, for example, in the northwest, but also in the west of Leipzig and south of Grünau. The persistently high demand will ensure that localised catch-up processes, especially in peripheral locations, are likely to occur in the coming years.
Source: JLL, empirica systeme; Status: July 2019
Source: JLL, empirica systeme; Status: July 2019
Source: JLL. empirica systeme, IDN immodaten; Status: July 2019
Purchase price bands for condominiums Leipzig
Distribution of condo listings by price group
Development of purchase prices for condominiums
Leipzig
Residential City Profile | H1 2019 6
Alt-WestMitte
Nord
Nordost
Nordwest
Ost
SüdSüdost
Südwest
West
ìA 14
ìA 9
ìA 14
ìA 9
ìA 14
ìA 14
ìA 38
ìA 9
ìA 38
ìA 38
ìA 14
ìA 38
ìA 14
< 1,500
1,500 < 2,000
2,000 < 2,500
2,500 < 3,500
>= 3,500
Condominium price levelAverage in €/sqm on postcode level
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
0 5 10 Kilometers
Water Area
Green Area
Industrial orTraffic AreaOther Area
Asking condominium prices Leipzig
Leipzig
Contacts
Helge ScheunemannHead of Research GermanyHamburg +49 (0) 40 350011 225 [email protected]
Dr. Konstantin KortmannHead of Residential InvestmentGermanyFrankfurt+49 (0) 69 2003 [email protected]
Ralf KemperHead of Valuation & TransactionAdvisory GermanyFrankfurt+49 (0) 69 2003 [email protected]
AuthorDr. Sören GröbelSenior Research AnalystBerlin+49 (0) 30 203980 [email protected]
Sebastian GrimmSenior Team Leader Valuation & Transaction AdvisoryFrankfurt+49 (0) 69 2003 [email protected]
Roman HeidrichSenior Team Leader Valuation & Transaction AdvisoryBerlin+49 (0) 30 203980 [email protected]
Anja SchuhmannSenior Team Leader Residential Investment Berlin+49 (0) 30 203980 [email protected]
Thomas ZabelHead of Residential Development GermanyBerlin+49 (0) 30 886600 [email protected]
Copyright © JONES LANG LASALLE SE, 2019. No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of Jones Lang LaSalle. It is based on material that we believe to be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors. We would like to be told of any such errors in order to correct them.
jll.de Information regarding JLL and our servicesjll.de/research All research reports on current market figures and special topicsjll.de/immo Commercial real estate properties for sale or to let througout Germanyresidential.jll.de Information and offers on condominiums in exciting German metropolises
![[City Profile] Ethiopia](https://static.documents.pub/doc/80x56/54b7d8b84a7959543e8b4647/city-profile-ethiopia.jpg)
![[City Profile] Bucarest](https://static.documents.pub/doc/80x56/556147c9d8b42a8a7d8b47ca/city-profile-bucarest.jpg)
