Published in March 2021 Leipzig - Residential City Profile - JLL
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Residential City Profile Leipzig Leipzig | 2nd half of 2020 Published in March 2021
Housing market Leipzig
Net population influx, despite the COVID-19 crisis remains the most dynamic in terms of population growth
Despite the mobility restrictions resulting from the COVID-19 in 2020 (16% population growth between 2010 and 2020).
pandemic, the net inward migration into Leipzig remained Even if the net influx remained constant in the period 2018 –
almost the same in 2020 (inward migration balance of 2020, this is still below the level of the preceding years.
around 5,000 is a change of just -5% compared to the pre- This trend is mainly a reaction to changes in the market
vious year). With a net inward migration of around 83 per brought about by the significant increase in demand:
10,000 population each year, Leipzig still has by far the whilst the last 10 years were characterised by the poten-
highest relative net population influx of all Big 8 cities and tial offered by decreasing vacancy levels, supply is now
slower to react to changes in demand which means that
there are now greater effects on prices. The increasing
Housing supply and demand for housing costs tend to reduce the acceleration in inward
new buildings Leipzig migration. Nonetheless, the level of population growth
and the requirement for additional residential units re-
mains high. Given the fall in existing capacity, this demand
must be increasingly satisfied by construction activity. In
this context, the intermediate scenario in terms of the an-
nual requirement for new homes is around 4,200, a level
which was matched by the number of new building per-
mits issued for the first time in 2019 (4,330 new homes).
Therefore, the number of new building permits has more
than quadrupled over a period of 10 years, which shows
the city council’s strategy of focusing on residential con-
struction to guarantee a sufficient supply of affordable
housing. The number of completions also rose; however,
the 2,356 newly completed apartments was below the
number of new building permits. The significant increase
in the construction backlog indicates that the level of
*Additional annual need for housing units (includes also apartments in detached completions will tend to increase in the future.
houses) without consideration of current construction deficits.
Source: destatis, JLL; Status: January 2021
Selected developments under constructions
Name Location Residential units Completion date
Leipzig 416 Zentrum-Nord approx. 2,200 2021
Wohnquartier Sonnenpark Probstheida approx. 300 2022
Quartier Kreuzstraße Zentrum-Ost approx. 190 2023
LWB – Querstraße Zentrum-Ost approx. 150 2021
LWB – Straße des 18. Oktober Zentrum-Südost approx. 100 2021
Source: Thomas Daily, JLL; Status: January 2021
Residential City Profile | H2 2020 Leipzig 2Prime and new-build segments still driving
rental price growth
There was a 3.4% increase in median rents in Leipzig in the
second half of 2020 (€7.50/sqm/month). This is around the
same level as the average rental price growth in the other
Distribution of rental listings by price group Big 8 cities, but is below its own 5-year average of 5.5% p.a.
There were above-average rental price increases over the
last six months in the prime (top 10% of all rental offers)
and new-build segments. The rental price growths of 5.0%
and 4.8% respectively were below the 5-year averages
(5.1% and 9.1% p.a.), but growth in the prime segment was
twice as strong as the Big 8 average. The achievable rents
in the prime segment are €10.50/sqm/month, and €11.00/
sqm/month in the new-build segment. In the lower priced
segment (lowest 10% of all rental offers), rents rose by just
2.6% compared to the same period the previous year to
their current level of €5.90/sqm/month. There were slight
to moderate falls in the median rent compared to the sec-
ond half of 2019 in a number of districts, but marginal in-
creases in the West and North West districts.
Source: JLL, empirica systeme; Status: January 2021
Rental price bands for listed apartments Leipzig Development of rental prices
Source: JLL, empirica systeme; Status: January 2021 Source: JLL, empirica systeme, IDN immodaten; Status: January 2021
Residential City Profile | H2 2020 Leipzig 3Asking rental prices Leipzig
B 184
A 14
Flughafen Leipzig/Halle
Nord
B6
Nordwest
Nordost
K6570
B 186
Alt-
B 181 West B 6 / B 87
Mitte Ost
B 87
West
Süd Südost
B2
Südwest
0 5 10 km
OpenStreetMap-contributors
Rent Level
Average in €/sqm/month on postcode level
< 6.00 8.00 < 9.00 Water Area Industrial or
Traffic Area
6.00 < 7.00 >= 9.00 Green Area Other Area
7.00 < 8.00
Source: JLL, empirica systeme
Residential City Profile | H2 2020 Leipzig 4Price growth in the market for condominium
apartments continues in all segments
There was another significant rise in purchase prices for
condominium apartments in Leipzig over the second half
of 2020. These grew by 14.2% to their current average of
Distribution of condo listings by price group €2,580/sqm. The growth was higher than the previous year
(8.7%) and greater than the 5-year average (11.2% p.a.). In
the prime segment with current asking prices of €4,770/
sqm, there was purchase price growth of 12.2% in both this
and on a similar level in the mid-priced segment. The
strongest year-on-year growth was achieved in the lower
price segment (lowest 10% of all purchase offers: €1,770/
sqm) with 18.0% (previous year: 15.4%). In the new-build
segment with current asking prices of €4,310/sqm, there
was a year-on-year growth of 8.8%, which is higher than
both last year’s growth rate (3.3%) and the 5-year average
(7.5% p.a.). In an analysis of locations, the East, South,
South East and Mitte districts benefited most from the
growth in purchase prices over the past six months.
Source: JLL, empirica systeme; Status: January 2021
Purchase price bands for condominiums Leipzig Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: January 2021 Source: JLL, empirica systeme, IDN immodaten; Status: January 2021
Residential City Profile | H2 2020 Leipzig 5Asking condominium prices Leipzig
B 184
A 14
Nord
B6
Nordwest
Nordost
K6570
B 186
Alt-
B 181 West B 6 / B 87
Mitte Ost
B 87
West
Süd Südost
B2
Südwest
0 5 10 km
OpenStreetMap-contributors
Condominium price level
Average in €/sqm on postcode level
< 1,500 2,500 < 3,500 Water Area Industrial or
Traffic Area
1,500 < 2,000 >= 3,500 Green Area Other Area
2,000 < 2,500
Source: JLL, empirica systeme
Residential City Profile | H2 2020 Leipzig 6Contacts
Michael Bender Helen Lindner Ralf Kemper
Head of Residential Germany Head of Residential Development Head of Valuation & Transaction
Frankfurt Germany Advisory Germany
+49 (0) 69 2003 2333 Berlin Frankfurt
michael.bender@eu.jll.com +49 (0) 30 203980 703 +49 (0) 69 2003 1092
helen.lindner@eu.jll.com ralf.kemper@eu.jll.com
Helge Scheunemann Roman Heidrich Sebastian Grimm
Head of Research Germany Lead Director Valuation & Lead Director Valuation &
Hamburg Transaction Advisory Transaction Advisory
+49 (0) 40 350011 225 Berlin Frankfurt
helge.scheunemann@eu.jll.com +49 (0) 30 203980 106 +49 (0) 69 2003 1196
roman.heidrich@eu.jll.com sebastian.grimm@eu.jll.com
Alon Brahm
Team Leader Residential Investment
Berlin
+49 (0) 30 203980 193
alon.brahm@eu.jll.com
Authors
Dr. Sören Gröbel Christian Giesemann
Director Research Team Leader Research
Berlin Berlin
+49 (0) 30 203980 151 +49 (0) 30 203980 201
soeren.groebel@eu.jll.com christian.giesemann@eu.jll.com
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