Increase in Leipzig Rent Levels Since 2023 Revealed
Leipzig Announces Rent Increase Starting July 1
Starting July 1, the average cold rent in Leipzig will rise to over 6.56 Euros, representing an increase of 4.3% compared to the last rent index in 2022. This upward trend has been observed across various districts, with more significant increases in larger apartments and those built after 2005.
The surge in rents for apartments exceeding 90 square meters is particularly noteworthy, with an average increase of 9.6%, while rents for post-2005 constructions have risen by approximately 12%. Housing units with modern kitchens, equipment, and furniture are also factored into the new rent index for the first time.
Although the city council is yet to approve the new index, it has already been deemed legally binding by both tenant and landlord advocacy groups. The index serves as a benchmark for local comparative rents, allowing tenants to file complaints if their rent exceeds 50% above the index.
Approximately 12,000 households in Leipzig were surveyed for the creation of the index, with over 90% responding. However, those who did not participate may still face potential fines in the future.
The persistent housing supply shortage in Leipzig, a growth market, contributes significantly to ongoing rent increases. The demand for housing consistently outpaces the available supply, fueling the upward trend in rental prices, especially for newer and larger apartments.
Sources:[1] City of Leipzig[2] Leibniz Institute for Regional Geography[3] realwith.de - The Real Estate Blog for saxony, thuringia, and brandenburg
The upward trend in rental prices in Leipzig, a growth market, has affected not only conventional apartments but also expanded to the home-and-garden sector. Consequently, an increasing number of landlords are elevating lifestyle standards by upgrading shared communal areas, such as gardens and balconies.
Moreover, as rental prices for larger apartments surge, the investment in modernizing or creating more spacious home-and-garden living quarters has become a welcomed feature in attracting potential tenants, making it a prominent aspect of the new rent index for the city.
