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Dresden Is Worth It

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Dresden Is Worth It Dresden is worth it Facts·Figures·Background about the property location 2017 Population development and prognosis Dresden (Source: City of Dresden municipal statistics archives) 600 Population in thousands Prognosis 582 300 575 573 000 561 600 553 000 550 542 289 525 512 702 504 795 500 477 807 475 450 1998 2000 2002 2004 2006 2008 2010 2015 2016 2020 2025 2030 Overview of Dresden property market Property market Offices and retail property Residential property Overall turnover for Dresden Office space turnover: 78,000 m² Turnover residential and part-residential property: €667 million property market: €2,1 bn Prime office rents: 12 €/m² Turnover single family homes and double-family houses: €125 million Number of properties changing Prime retail rents: 110 €/m² Residential and part-residential property: turnover €664 million hands in all: 6 100 Rents without service costs: 3,50 to 8,50 €/m² * Source: Evaluation Committee Dresden, 2017 * rent index Dresden 2017 Contents 1 Greetings from the Lord Mayor Links dresden.de/exporeal 2 – 3 Dresden is worth it dresden.de/invest Facts.Figures.Background about the property location 2017 dresden.de/wohnen 4 – 5 Dresden – Desirable dresden.de/verkehr 6 – 7 Dresden – Rewarding sib.sachsen.de 8 – 9 Dresden – Worthwhile zfm.sachsen.de 10 – 11 Dresden – Worth knowing 12 – 13 Dresden – Liveable 14 – 15 Dresden – Lovable 16 Dresden – Homely Supplement Current real-estate projects in the city of Dresden On the way to the city of the future Dresden Dirk Hilbert, Lord Mayor Dirk Hilbert Dresden is continuing to write its own success story. The tobacco record levels. Thanks to the strong influx of people, the demand for tion for the title of „European Capital of Culture 2025“ is already en- company Philip Morris, which has been based in Dresden for more residential and working space is constantly growing. riching social and civic development. than 25 years, is building a new high-tech factory for about 300 mil- lion Euro. The chip manufacturer Globalfoundries is investing 1.5 bil- Dresden can already offer good infrastructure and a beautiful living Positive economic development, sustained population growth and lion Euro in the location. And the technology group Bosch is putting environment. Nevertheless, we want to make living in our city even rising purchasing power make the city attractive for investors. To one billion Euro into a new semi-conductor factory in Dresden, the more enjoyable. For us, a Smart City means not only mobility, cli- enable growth to continue in the future, we are developing new largest single investment in the company’s history. mate protection and energy efficiency, but also future-oriented commercial areas. For example, the science location Dresden East housing construction. We make sure that all areas are looked after. In ad- is being developed on grounds covering 100 hectares. Close to the The city is growing, the economy is booming, science and research dition to owner-occupied apartments and high-priced new buildings, city centre, this will be an innovation centre for scientific institutes, are excellent, art and culture are providing an important stimulus. we also need social housing. With one eye on the future, we there- technology companies and research-oriented service providers. The unemployment rate is at its lowest level and new jobs are conti- fore pay attention to a sensible use of available land in the city cen- nuously being created. The „Prognosis Future Atlas 2016“ confirms tre. An excellent example is the Lingnerstadt project. A completely I invite you to explore the innovative business and science sectors, as that Dresden displays very high dynamism in its overall develop- new urban district is being created right in the heart of Dresden. well as the dynamic real estate market. Feel the special atmosphere ment. This is due not only to the establishment of large companies, permeating life and work – in the pages of this brochure and also but also to the many investments in science, research and culture, as We want to shape the future of our city together and develop a new gladly on the spot in Dresden. well as in the building of schools and day care facilities for children. city culture. The aim is to design a holistic and sustainable vision for Dresden in cooperation with citizens, science, local politics, business The number of inhabitants is heading towards the 600,000 mark. and administration. This is to be implemented within the framework The housing industry is flourishing. In 2016, 2,600 new apartments of the competition sponsored by the Federal Research Ministry, were built, 1,000 more than in the previous year. About 20,000 addi- „City of the Future 2030+“, on the basis of specific projects. Dresden tional apartments are expected to be needed by 2030. Rents are in- is a cultural city. And culture also means engaging with each other Dirk Hilbert creasing. The sale of real estate and residential property is reaching in dialogue and jointly shaping life together in the city. Our applica- Lord Mayor of the City of Dresden Dresden is worth it Development of the number of the working population at the place of work Facts·Figures·Background Source: Saxon Statistical Office, 2016 about the property location 2017 Working population 284 600 303 300 308 400 319 400 328 000 Mio 2005 2008 2011 2014 2030* * Prognosis Urban Planning Authority - own estimates, 2016 Price comparison individual residential construction Source: Evaluation Committee Dresden, 2017 Semi-detached house + terraced house New building Single-family homes Location €K €/m2 Average purchase price Purchase price range Detached Good 525 2 715 – 4 100 Mid-range 475 2 625 – 4 075 Semi-detached All 390 2 615 – 3 240 End-terrace house All 355 2 295 – 2 890 Mid-terrace house All 335 2 130 – 2 870 Semi-detached house + terraced house Portfolio before 2015 Single-familiy homes Location €K €/m2 Average purchase price Purchase price range Detached Very good 455 1 675 – 5 385 Good 340 745 – 4 755 Mid-range 255 320 – 3 590 Semi-detached Good 275 1 300 – 5 540 Mid-range 230 1 100 – 3 350 End-terrace house Good 270 1 915 – 2 940 Mid-range 250 845 – 2 765 Mid-terrace house Good 265 1 755 – 4 445 Mid-range 195 795 – 3 000 2 Sales development of undeveloped properties ready for construction Medium property prices Source: Evaluation Committee Dresden, 2017 Source: Evaluation Committee Dresden, 2017 Properties undeveloped ready for construction for single-family homes 588 529 485 403 385 304 Purchase 91 75 147 107 182 104 million –– 138 150 148 169 192 228 per m2 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Sales development with residential property Source: Evaluation Committee Dresden, 2017 Residential property for apartment-blocks 4 312 3 545 3 269 3 998 3 777 4 068 Purchase 418 449 434 552 601 634 million 236 293 249 298 318 396 per m2 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Purchase prices for living spaces at first sale Source: Evaluation Committee Dresden, 2017 Period building New build renovated for industry 3 285 2 950 3 415 3 850 3 820 3 045 Ave. per m2 111 95 111 102 92 98 per m2 Location good mid-range basic Location good mid-range basic 2011 2012 2013 2014 2015 2016 3 Dresden – Desirable Freiberger Platz after its refurbishment Joint building venture Menageriegärten Dresden promises a lot – More inhabitants Land and residential property Dresden keeps a lot bring dynamism are in demand An exciting property market has emerged in Dresden because the The dynamism in all sectors of the real estate market is growing in pa- With a total of 2.1 billion Euro, the turnover of land and residential demand for residential and working areas is constantly increasing. rallel with the increase in the number of inhabitants and households properties was even higher than in the boom year of 2006 with 1.74 The state capital provides diverse employment opportunities in all in Dresden. The gross domestic product is continuously rising. The billion Euro. That is the best result of the millennium. Because there sectors – from science to industry, from culture to tourism, and also „Prognosis Future Atlas 2016”* confirms that Dresden demon- is no sure alternative to residential property as an investment mod- in politics and administration as the location of the Saxon minis- strates a very high level of dynamism in its overall development. el. In 2016, the financial turnover in residential and part-ownership tries. The chances for graduates to find secure employment here According to a current study by the business consultancy compa- properties rose for the seventh time in a row. With 664 million Euro are excellent. The increasing attractiveness of the city centre and of ny „Ernst & Young”**, which surveyed Germany’s largest banks, (2015: 558 million Euro), it is the highest value so far. About 125 housing supply, of innovation and knowledge transfer from the uni- funds and housing associations, Dresden has advanced to place four million Euro (2015: 114 million Euro) was spent on single-family and versity, as well as from other scientific establishments and institu- within the top 7 locations. Berlin remains the favourite as a location double-family houses. The rising demand has meant that even in tions in the private sector, continue to generate an influx of people for residential properties. The unemployment rate in Dresden is at the city centre previously unused land is undergoing development, and a good atmosphere for starting families. an all-time low and new jobs are being created every year.
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