Dresden, thanks to its picturesque river views and beautiful churches, is famously known as the “Florence on the Elbe”. The scenic Elbe river flows through the center of Dresden; dividing the traditional and artistic Altstadt (old town) and the lively and modern Neustadt (new town). Various historical buildings in the city offer a wide range of architectural style, from Renaissance to Baroque, to early 19th century Romanticism, the most iconic landmark of all is the the splendid Frauenkirche, the Church of Our Lady.
With just over half a million population, Dresden is the second largest city in Saxony after Leipzig. The city is growing rapidly, as the economy is booming, science and research are thriving, and art and culture are flourishing. Major global companies are also providing an important stimulus to boost the economy, for example. Samsung, Bosch and Volkswagen are investing in Dresden, expanding their factories or building new ones. The unemployment rate is at its lowest level and new jobs are continuously being created. Dresden has a considerably lower unemployment rate of 7.3%, compared to other cities in the Eastern part of Germany, such as Cottbus (9.4%) and Görlitz (10.10%).
The average asking price for condominium apartments stalled at €2,349/sqm in 2018, growing by only 0.2% compared to the previous year. Even so, the growth rate has gone up by more than 20% since 2012. Newly built apartments in prime locations can reach up to €3,077 per sqm on average, an increase of 8.9% in comparison to 2017.
Due to a rising demand for rental apartments, the average asking rent reached to €7.30/sqm per month in 2018, it has increased by more than 16.0% since 2012. The average asking price for a single-family home is now €446,729, an increase of 3.0% compared to 2016. Despite a significant increase in property prices, when compared to major western German cities, both asking and rental prices are still quite low in Dresden.
Dresden has long been one of the biggest winners of German reunification and is widely regarded as one of the most promising cities in Germany. The outlook for the housing market in Dresden is positive as the vacancy rate has declined by 1.9%. The apartment vacancy rate has declined steadily as well and has reached to a low of 6.4 percent. Dresden offers great long-term investment opportunities, because affordable housing is slowly becoming limited in the booming Elbe metropolis than ever before. Average gross yields of 5.1% and comparable risk profiles to cities in the Western part of Germany make Dresden an attractive and lucrative market for real estate investors.
"Many Eastern German regions are experiencing extremely strong economic growth, which certainly bodes well for the future and is already reflected in rents, purchase prices, private consumption, incomes and labour markets," said Claudia Hoyer, COO of TAG Immobilien AG.
We work with multiple property listing websites and real estate agents to help you find a property. For instance, if you’re planning to purchase a property in Dresden, neubau kompass has many great new build real estate listings on their website!
Germany's strong economic growth has resulted in price increases across German cities: On average the prices doubled in the last 10 years. Rents also follow the house price development in Germany: the average increase amounts to 50% between 2008 and 2018.
In Dresden, the average annual property prices per square meter has increased from €1,500 in 2008 to €3,077 in 2018. Meanwhile, the average rent prices per square meter also increased €5.50 from in 2008 to €7.30 in 2018.
LoanLink24 is a German mortgage broker that specializes in helping international clients in Germany get mortgage that fits their personal and financial circumstances. If you want to purchase a property in Dresden, we can guide you through every step of the process. Our highly professional mortgage broker team in Dresden provides excellent advices in English, Chinese, Russian and German. Moreover, we leverage advanced algorithm technology to find the best mortgage interest rates from over 400 regional and global German banks.
Our smart online mortgage platform is available round the clock to help you with the German mortgage process. And our home loan calculator shows a complete picture of what your mortgage might look like. To make the process easy for non-German speakers, all resources are in English, Chinese, Russian and German. Best of all, we do not charge our customers any fees.
LoanLink24 is registered and controlled by the surveillance authority in Dresden.
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When buying a property in Dresden, you always have to pay for additional fees, such as real estate tax, real estate agent fees, notary costs etc. In Germany, purchase fees may be up to 15% of the property’s purchase price. Similar to a downpayment, real estate purchase fees should be covered by the buyer’s own equity instead of a bank mortgage. In Dresden, the approximate additional purchase fees are as follow:
Real estate tax: 3.5%
Real estate agent fees: 3.57%
Notary costs: 2%
Total costs: 9.07%
For more information in regards to the additional fees you would pay when buying a property in Dresden, please check out our mortgage calculators for a more accurate calculation.
Altogether, the timeline depends on you. If you have all relevant documents ready the process can take only a few days. In case you want to be covered as fast as possible, please let us know. We have direct relationships to the credit departments of our partner banks and can accelerate the process.
As soon as you decide to buy, there are several good resources for locating a property in Germany. A few of the most common resources are the major residential real estate pages like immobilienscout24.de or immowelt.de.
Additionally, you can approach local real estate agents or the construction company. Also, please approach us. We have partners in Frankfurt, Berlin, Munich, Hamburg or Stuttgart who are ready to help.
Once you decide to purchase property in Germany, contact the LoanLink24 undefined Mortgage brokers via live chat, email or phone. Whenever you have a spare minute, you can also read our German mortgage blog to learn more.