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Leipzig stands out! (FT) Germany also has one of the lowest rates of home ownership in Europe – at about 43 per cent – and domestic demand is low, leaving many opportunities for outside buyers. (...)One city that stands out is Leipzig in Saxony(...) One city that stands out is Leipzig in Saxony, the most industrialised and densely populated region in eastern Germany, bordering the Czech Republic and Poland. With an impressive history – past residents include poet and philosopher Friedrich Schiller and composers Felix Mendelssohn, Robert Schumann, and Richard Wagner – it was where the “peaceful revolution” began in 1989 and it has since benefited from extensive reconstruction. Neglected ancient buildings have been restored, while ugly German Democratic Republic-era ones have been demolished or cosmetically enhanced, so the architecture in the energetic centre is now an attractive combination of Baroque, contemporary, modernist and Stalinist-era buildings. Property is also exceedingly affordable, with whole apartment blocks available for the price of a single residence in many European locations. For example, the Allgrund agency is selling a large building with seven residential and three commercial units in the Lützschena-Stahmeln area of the city for just €385,000 ($560,000), as well as an elegant building with six apartments at Volkmarsdorf near the centre for €260,000. “There is a simple reason for these very low prices,” says Peter Talkenberger of Allgrund. “Ten years ago when the east German market was booming lots of properties in places like Leipzig were renovated with the anticipation of very high rents. The lucrative rents did not happen and there were many forced sales. Now these properties are being resold at very good prices, low enough for people to rent out profitably and prices are set to rise steadily in the next five to 10 years.” He notes that Leipzig is well placed between Munich and Berlin, its airport is expanding and big companies, such as DHL, are beginning to establish bases there. |
