Press Release

13th ACCENTRO Homeownership Report - Rise in New-Build Condominium Sales in Leipzig and Magdeburg

01.

October 2020

Berlin, 1 October 2020 – Compared to the year before, sales figures in Germany’s eastern state rose by 1,188 to a total of 15,770 condominiums sold in 2019. These figures are quoted in this year’s ACCENTRO Homeownership Report, which is based on the analysis of data provided by the property valuation committees of Germany’s 82 largest cities. Three major cities in Saxony stood out with high sales figures, these being Dresden (4,581), Leipzig (4,515) and Chemnitz (1,889). But condominium sales also increased in other eastern German cities such as Rostock (806), Gera (412) and Jena (229). Year on year, the steepest increase was identified in Gera, where the number of condominium sales went up by 21.53 percent.

“The high number of transactions underscores the high level of attractiveness that the Saxon cities have,” said Lars Schriewer, CEO of ACCENTRO Real Estate AG, adding: “While rural areas in East Germany are struggling due to outgoing migration and rapid geriatrification, cities like Dresden and Leipzig have become increasingly attractive for students and young professionals.”  

New-Build Units: Strong Growth in Leipzig and Magdeburg

Year on year, the number of newly-built condominiums surged notably in Magdeburg (322) with a growth rate of 65.98 percent and in Leipzig (504) with a 50-percent increase. In Dresden, a total of 1,329 new-build flats were sold last year, 10.29 percent more than in 2018. This puts the state capital of Saxony in fifth rank nationwide, after the metropolises of Berlin, Munich, Hamburg and Frankfurt am Main. Another city manifesting an upward trend is Chemnitz, were 488 new-build flats were sold, which is 20.79 percent more than the year before.

“The number of new-build flats sold reflects the level of construction activity in the cities. New-build units play a decisive role in balancing a market, as the strong incoming migration from inside and outside Germany over the past decade has fuelled enormous growth, especially in the ‘Big 7’ cities and the swarm cities,” elaborated Prof. Dr. Michael Voigtländer, Head of the Financial Markets and Real Estate Markets Competence Unit at the IW Institute, who was in charge of the data survey for the first time this year.  

Leipzig and Dresden Claim Top Spots in Revenues Achieved

In analogy to the differences in the number of condominiums sold, sales revenues also differ significantly from one eastern German city to the next. While Leipzig in eighth place (846.2 million euros) and Dresden in ninth place (840.66 million euros) are directly behind the Big 7 cities in the (nationwide) ranking, other cities are close to the bottom. Jena placed 75th (46.7 million euros), Gera 81st (24.9 million euros), and Cottbus brought up the rear in 82nd place (22.5 million euros). But the ten-year comparison of the cities by growth in sales revenues shows significant revenue increases in the eastern German cities of Chemnitz (+306 percent), Gera (+277 percent), Halle (+241 percent) and Rostock (+219 percent).  

About the ACCENTRO Homeownership Report

This edition marks the thirteenth time that ACCENTRO Real Estate AG published its Homeownership Report. For the first time, the homeownership report was compiled in collaboration with the IW Economic Institute this year. The analysis is based on residential property sales transacted in all of Germany’s 82 major cities during the reporting year of 2019. A significant distinction that sets the report apart from similar publications, most of which rely on expert appraisals or on analyses of supply-side data, is that it draws on the data of the cities’ property valuation committees. Detailed findings of the ACCENTRO Homeownership Report on Germany’s ten most populous cities and the trends of the past twelve years are also available online in the ACCENTRO database, and can be retrieved in the form of selective drilldowns: House Ownership Report

About ACCENTRO Real Estate AG

ACCENTRO Real Estate AG is a residential property investor and Germany’s market leader in housing privatisations. Its real estate portfolio consisted of around 5,200 units as of 31 December 2020. In addition to Berlin, regional focal points include East German cities and conurbations, as well as the Rhine-Ruhr metro region and Bavaria. The business activity of ACCENTRO comprises four core divisions. These are the tenant-sensitive retailing of condominiums to owner-occupiers and private buy-to-let investors, the sale of real estate portfolios to institutional investors, the set-up and management of a proprietary real estate portfolio, and third-party condominium marketing for property asset holders, investors and developers. The shares of ACCENTRO Real Estate AG are listed on the Prime Standard segment of the Frankfurt Stock Exchange (German securities code number WKN: A0KFKB, ISIN: DE000A0KFKB3). investors.accentro.de

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