Annual report - Real estate market in Saxony declining
Saxony's real estate market clouded over last year. In 2022, a good 47,500 purchases were made with a volume of 11.53 billion euros, as the Higher Expert Committee reported in its annual report on the property market on Thursday. These were declines of 13 and 10 percent respectively. In contrast, there had been increases in the previous year. The reasons given for the declines were higher interest rates and construction costs as well as a sharp rise in consumer prices. The price trend for residential properties, for example, varies from region to region. In Leipzig and Dresden in particular, there is a high demand for living space with a partly scarce supply.
Despite negative influencing factors, the Saxon real estate market is robust and resilient, emphasized committee chairman Matthias Kredt. "However, the full extent of the persistently difficult economic environment will only become apparent with the market data for 2023, as the first half-year evaluations of the local expert committees already show."
Market reports from the Higher Expert Committee
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- In Leipzig and Dresden, the high demand for living space and scarce supply have led to higher construction costs in the Saxony real estate market.
- The annual report revealed that despite higher interest rates, construction costs, and consumer prices, the Saxony real estate market experienced a 13% decrease in purchases and a 10% decline in volume in 2022.
- Matthias Kredt, the committee chairman, emphasized that the Saxony real estate market is resilient, but the full impact of the challenging economic environment is yet to be seen, as indicated by the initial 2023 market data.
- Despite these difficulties, the annual report indicated that the real estate market in Leipzig and Dresden still faced price fluctuations due to regional demand and supply imbalances for residential properties.
Source: www.stern.de
