Saxony-Anhalt Land Market Remains Steady

Real Estate Boom and Bust in Saxony-Anhalt

Magdeburg, Germany, June 5th, 2025. After a tumultuous few years marked by record-breaking turnover and a subsequent drop, Saxony-Anhalt's real estate market has finally settled but is yet to fully recover, as expressed by Dr. Lydia Hüskens, the Minister of Infrastructure and Digitalization, in a recent presentation.

Despite the ongoing turbulence, the real estate market in Saxony-Anhalt showed a glimmer of optimism in 2024, with a four percent increase in overall turnover compared to 2023. Properties worth a staggering 3.55 billion euros exchanged hands last year, resulting in approximately 24,500 transactions. However, these figures are below the long-term average of around 29,000 transactions per year.

The real estate market's sluggish recovery isn't exclusive to Saxony-Anhalt and is being observed nationwide. "Rising construction costs and high loan interest rates stifle the market, especially when it comes to building one's dream home," Hüskens explained. Unfortunately, there's no relief in sight for these issues.

Transparency and data-driven analysis are essential to understanding the market's dynamics. To that end, the committee for real estate values in Saxony-Anhalt offers continuous, independent observation and analysis, ensuring market participants have access to reliable information on developed and undeveloped land.

In 2024, building plot transactions decreased by six percent compared to the previous year, with only half as many building plots being traded. However, the square meter of building land in medium locations such as Halle (Saale) or Magdeburg still costs around 250 euros, unchanged from the previous year. Prices in rural areas are slightly cheaper at around 29 euros per square meter, with minimal variation across the country.

In contrast, the submarket for residential and co-ownership properties, including condominiums, remains strongly attractive. Monetary turnover exceeded the level of 2020 by a stunning ten percent, with almost half of all transactions taking place in Magdeburg and Halle (Saale). Resale condominiums in Magdeburg fetch an average of 1,700 euros per square meter of living space, the same as in the previous year, while Halle (Saale) saw a four percent increase, averaging 2,060 euros.

Due to high construction costs, demand for single-family homes is shifting towards existing properties, and there are good opportunities for bargain hunters, particularly for older buildings in the Mansfeld-Südharz district or the Salzlandkreis, which can be purchased for an average of less than 85,000 euros. Prices in the outskirts of major cities and popular destinations such as Tangermünde and Wernigerode averaged between 200,000 and 300,000 euros. The highest purchase prices were recorded in the major cities themselves, with an average price level of around 320,000 euros in Magdeburg and 330,000 euros in Halle (Saale).

The price trend for arable land, with steadily increasing prices, continued in the reporting period, with the prices of high-quality soils tending to remain stagnant. The average purchase price for arable land in 2024 was 21,400 euros per hectare.

In brief, despite some bright spots, the overall real estate market in Saxony-Anhalt is still struggling to regain its footing due to high construction costs, economic stagnation, and high loan interest rates. However, regional development projects and a focus on renewable energy could help attract businesses and boost the market in the long term. For the most up-to-date information on Saxony-Anhalt's real estate market, check out the Real Estate Market Information 2025.

The Minister of Infrastructure and Digitalization, Dr. Lydia Hüskens, highlighted the need for investment in the industry and personal-finance sectors to help boost the real estate market, citing rising construction costs and high loan interest rates as obstacles.
With the ongoing economic stagnation, the home-and-garden sector in Saxony-Anhalt shows potential for those looking to purchase older single-family homes, particularly in the Mansfeld-Südharz district or the Salzlandkreis, at an average price of less than 85,000 euros.
In contrast, the technology industry may find opportunities in Saxony-Anhalt as businesses focus on renewable energy solutions, which could drive growth in the region and attract further investment in real-estate.
Educational institutions could contribute to self-development and future competitiveness by addressing industry-specific skills, such as those related to finance and real-estate, to prepare a workforce capable of navigating the complexities of the ever-evolving market.
As part of the comprehensive approach to understanding and addressing the challenges faced by the real estate market, it's essential to maintain transparency, employing data-driven analysis to inform policymaking, particularly in the areas of economic and social policy, ensuring informed decision-making by all market participants.