- Fewer transactions on the property market in Saxony-Anhalt
Higher interest rates and increased construction prices have significantly impacted the real estate market in Saxony-Anhalt in recent years. Compared to 2022, the transaction volume of building plots has halved in 2023. This downward trend continues in 2024, but has slowed down in the first half of the year, according to Ralph Ackermann, the new chairman of the committee for land values. Compared to the same period last year, there has been a 15% decrease in transactions, which is a small positive sign, Ackermann said.
The price level varies greatly across the region. The highest prices are found in Magdeburg and Halle, with peak prices of up to 400 euros per square meter for building plots in areas like Magdeburg-Stadtfeld and Halle-Kröllwitz. Around 200 euros per square meter is the average in the vicinity of these cities. Similar prices are now being seen in Oebisfelde (Börde district), near Wolfsburg. In Wernigerode (Harz district), prices can reach up to 350 euros per square meter for prime locations. Meanwhile, in rural areas, especially in the Altmark and Wittenberg district, building plots can be purchased for as little as 10 to 15 euros per square meter.
Saxony-Anhalt's Minister of Infrastructure, Lydia Hüskens (FDP), sees the relatively low price levels in some regions as an opportunity for rural development. She believes that cities like Berlin, Leipzig, and Wolfsburg can have a positive influence on Saxony-Anhalt, and smaller cities could also attract new residents due to their favorable locations. However, attractive living spaces require well-developed infrastructure. "We are working tirelessly to create modern structures throughout Saxony-Anhalt, so that people can settle, businesses can be established and continue to grow," Hüskens said.
Detached houses are less affected by the decrease in demand compared to building plots. In 2023, there was a 10% decrease in the number of detached house plots changing ownership compared to the previous year, and this trend continues in the first half of 2024.
On July 1, 2024, the members of the committee for land values in Saxony-Anhalt were appointed for the next five years. The committee consists of 120 experts, with Ralph Ackermann as the new chairman. The committee regularly provides information on current developments in the real estate market.
The following data shows a 15% decrease in real estate transactions in the first half of 2024, which is a small positive sign, according to the new committee chairman, Ralph Ackermann. Despite the impact of higher interest rates and construction prices, Saxony-Anhalt's Minister of Infrastructure, Lydia Hüskens, views the relatively low price levels in some rural areas as a opportunity for development in these regions.
