Leipzig is Planning to Identify 4 Areas for "Milieuschutz" - Gentrification Protection

The city of Leipzig is planning to identify four areas for protection restricting certain activities by landlords, like title split or luxury modernisation. The application of federal law  is called "Städtebauliches Erhaltungsgebiet" or "Milieuschutz". The consequences are described in detail in this article on this blog: The Can Do and Can't Do Renovating Apartments in Certain Areas of Berlin
It applies to Leipzig as well.

Von Frank Vincentz - Eigenes Werk, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=53288072

For more background information in German: http://www.lvz.de/Leipzig/Lokales/Leipzig-will-Milieuschutz-gegen-steigende-Mieten-einfuehren

Leipzig is Planning to Identify 4 Areas for "Milieuschutz" - Gentrification Protection

Eastern Germany Property Market Report and Investment Opportunities

The Berlin Residential Property Market has been on the forefront of the German property boom of the last 2 years and signs are pointing at a continuation of this trend. With increasing rents, purchase prices are rising as well and lately faster than the rent level. See Rent levels in the German Big 7.

As a reaction, investors are looking for alternative locations with similar prospects for the future but lower price levels. One of the obvious choices could be East Germany with a generally still lower price level. But caution is required: Some of the regions have been losing population while others have (re-)gained workplaces and inhabitants.

Research on alternative locations is complex and wrong decisions can be costly. To help your assessments for informed decision making we enclose the link to this report at the bottom of this message.

Through our Network we can provide 3 investment opportunities in this region

1. Multi-tenant home Leipzig with development potential, balconies
04179 Leipzig
asking price € 930k€
642.31 m²
33,807.72€ net rent p.a.
potential for increase

2. Multi-tenant home Leipzig with balconies
04177 Leipzig
asking price € 1,270k
581 m²
38,200.08€ net rent p.a.
potential for increase

3. Multi-tenant home in attractive location in Halle
06110 Halle
asking price € 650k
571 m²
34,619.64€ net rent p.a.
at its current potential

For more information on these properties, please contact me directly
uwe.falkenberg@falkenberg-solutions.com
_________________________________

Download the Report

Eastern Germany Property Market Report and Investment Opportunities

City Ranking in Germany for 2017 With Some Surprize Stars in The East

After 2015 the HWWI (Hamburgische Weltwirtschafts Institut) and Private Bank Berenberg have published their City Ranking 2017.

It looks at the 30 biggest German cities using a selection of indicators to determine the dynamics and direction of their development. There are quantitative indicators like demographics and an approach to qualitative indicators like the share of "high skills" jobs in the total number of jobs.

I don't want to make this too dry to read but there are some questions regarding the value of the findings: The indicators are ranked by the diversion from the statistical average for each indicator and then compiled into a summary indicator providing the overall ranking. So 100 new jobs in a city of 500,000 has the same impact as 500 new jobs in a city of 3.5 million.

It still provides an interesting insight into the general direction of the development of cities as well as their surroundings as cities have a growing importance for the development of their region.

So here is the ranking for 2017 in comparison to 2015:

The most remarkable result has to be Dresden, the capital of Saxony going up by 6 ranks and Leipzig in the same state moving up to No.2, both Ex-East-Germany.

Both cities have been the darlings of Anglo investors about 10 years ago driving up prices for investment properties.Subsequently many have abandoned the locations due to high vacancy rates which are now disappearing because of a turn-around in the job market in the region.

The full report is available here: City Ranking 2017

City Ranking in Germany for 2017 With Some Surprize Stars in The East

Migration Inside The Europe, Millions of East Germans returning home

Migration Inside The Europe, Millions of East Germans returning home

Many of the millions of east Germans who flocked to the west of the country to take jobs after the Berlin Wall fell are now returning home, a study to be published Thursday showed.

European Phoenix -- In 2010 alone more than 40,000 people born in communist East Germany who had moved west went back to the region, according to research conducted by the Leibniz Institute for Regional Geography in the eastern city of Leipzig.

Migration Inside The Europe, Millions of East Germans returning home