Why You Should Invest in Leipzig in 2020

TikTak Houses
April 5, 2020
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For starters to the German real estate market, Leipzig might come as a surprising option, given the close existence of bigger cities, such as Berlin. True, Berlin is a megacity, with world-class infrastructure and boundless opportunities, but Leipzig now measures with it in development, and has even started to surpass it. The city makes up the Southernmost part of the North German Plain and is just 160 km to the west of Berlin, and currently houses above 600,000 demonyms.

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Leipzig’s current rise is nothing short of miraculous. Its climb was unprecedented and widely unexpected, particularly given its economic and cultural decline after the second world war. With the development of new industries, advancement from old living methods and the establishment of an ultramodern transportation facility, the city was able to undergo a total makeover. Leipzig is currently regarded as a Gamma World City and was earmarked as the European City of 2019.

As mentioned earlier, Leipzig’s near-absolute dominance in the German market was never expected. Our experts have therefore looked at the city to unravel the factors that make this giant city tick.

Leipzig | pinterest.com

A Jackpot of Exciting Career Opportunities

Leipzig may not necessarily pay salaries as attractive as are available in other larger German cities, but what this urban city lacks so, it totally makes up for in career opportunities. Leipzig is the very home to any career-driven person, be it German or foreigner. This is mostly attributed to the surging boom that has characterized the business market for a while now, thereby availing residents with thousands of employment opportunities daily.

Previously known mostly for its fine automotive industry, the city has now earned quite a reputation for tech and SME startups, hence engaging the attention of a more vibrant, youthful and agile workforce. Courtesy of this growth, pre-existing mega companies in the city, such as Amazon, Porsche and DHL have been joined, to a great effect, by Tech companies, such as Nextbike and Trivago. This diversification has generated countless opportunities for willing persons.

Berlin’s Fall; Leipzig’s Rise

House prices in Berlin have considerably fallen over the years, thereupon enforcing a buyer’s market on investors. This was whereupon caused by the excess supply experienced by the market upon reaching its maximum output level. This has caused a significant switch to Leipzig and, invariably, has earned Leipzig the tag of a “seller’s market”. The prices of properties in the city have doubled from an average of €1,000 to an impressive €2,150 per square meter. This is a sharp contrast from the situation at Berlin.

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Prices further depend on the neighborhood which you’re investing in. Latest stats show that the average price of houses ranges from €1,000 in lesser neighborhoods to €2,500 on better neighborhoods. New properties are placed on rentals for, at least, €3,000 and as high as €4,500. This is without the consideration of value appreciation. In certain neighborhoods, such as the city center, at least €5,000 is charged per square meter.

A Buzzing, Busy Student Habitat

This is arguably the most influential factor in the city’s growth. Leipzig’s growth has been commendable in all sectors, ensuring that the educational system has not lagged behind. The city has implemented a qualitative educational system that has gone on to make the city appreciated in all quarters.

Leipzig is home to a host of historic universities, the foremost being the prestigious University of Leipzig that has been established for over a century. This school has produced famous persons, favorite examples being the great philosopher Friedrich Nietzsche, German Chancellor Angela Merkel, and Novelist Johann Wolfgang. Other illustrious schools in Leipzig include Leipzig University of Applied Sciences, HHL Leipzig Graduate School of Management and the Academy of Fine Arts.

These schools tremendously increase the real estate appeal of Leipzig, given that there are hundreds of thousand students in the city, some coming as new intakes and others as returning students. This makes short-term rentals in the city very promising as students require a simple, affordable place to live.

Leipzig | erasmusu.com

A Luxurious Designation of Greens

Leipzig could pass as a piece of artifact in the museum when visited for the first time. The city is outstandingly green, and residents are treated to plains upon plains of green, beautifully designed grasses. That’s by the way. Leipzig magnetizes attention, anyone would see. The city possesses several centers of attraction that could make it a hotspot for tourists in the nearest future.

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For a start, the long summer afternoons are completely enjoyed in the various parks that sprawl across the city. Water elementals are thoroughly catered for, with the presence of a district lake and many industrial canals making for a heightened water experience. Would you believe, this city of federal Saxony boasts of twenty natural, gracious swimming pools. Soul-searching.

Bottom Line

All indicators point to even better developments in Leipzig’s real estate market. Considerations are made on the Leipzig city tunnel as well, a facility which forms the centerpiece of the S-Bahn Mitteldeutschland public transit system and has turned the city into a connectivity hub. Experts across the world have predicted a rise in global value for Leipzig in the nearest future and this has caused a surge in the number of interested investors. You should be a part of this ascendency as well; this could yet be the finest hour to explore Leipzig.