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Future. City. Dresden Future. City. Dresden. Facts·Figures·Background on the 2016 property situation Population growth and 2020 outlook (Source: City of Dresden municipal statistics archives) 600 Population in thousands Forecast 575 550 541 000 525 504 795 495 424 500 477 807 475 450 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 Overview of Dresden property market Property market Offices and retail property Residential property Overall turnover for Dresden Office space turnover: + 7 % Turnover on residential and part-residential property: €558 million property market: €1.78 bn (roughly 91,000 m² in all) Price level for semi-detached/terraced house: +20% Number of properties changing hands Prime office rents: €12.50 /m² Prime yield: 5.2 % in all: 5 900 Prime retail rents: €115 /m² Residential and part-residential property: 15 % more turnover at €650 million | Rents without service costs: €4.75 – €12.00 /m² (Source: City of Dresden’s committee of valuation experts and Aengeveldt 2016 property market report) (Source: Dresden committee of valuation experts and Dr Lübke & Kelber GmbH) Contents 1 Message from the Mayor www.dresden.de/exporeal 2 – 3 Facts·Figures·Background on the 2016 property situation www.dresden.de/invest 4 – 5 Dresden, a market of opportunities – both constant and dynamic www.dresden.de/wohnen 6 – 7 Spaces for innovation – ideas for the future www.dresden.de/verkehr 8 – 9 A growing campus – students and start-ups in Dresden www.sib.sachsen.de 10 – 11 Good homes for a good life – it’s the blend that does it 12 – 13 Dresden’s vibrant city centre – bursting with the joys of life 14 – 15 Willkommen, welcome – Dresden international 16 Well-planned development for Dresden – City-centre planning concept Supplement Current real-estate projects in the city of Dresden Innovative solutions for Dresden’s future Dirk Hilbert, Mayor of the City of Dresden As a city of culture and a high-technology location, Dresden is the always shaped our city’s identity; not only historically. Combined opening this December, but the site is already buzzing with life: the driving force behind the economic and social development of the with science and business they are also significant factors for the Carl Maria von Weber University of Music and Dresden’s Heinrich entire region. The Saxon capital attracts professionals and scientists future. Schütz Conservatory were two of the first institutions to move in, from around the world. The people who live here feel at home in our along with some innovative start-ups. The city’s new creative hub city. In 2030, Dresden will probably have over 585,000 inhabitants, New technologies and infrastructural systems will also affect offers space for other players involved in culture and creativity. presenting us with the challenge of making our region sustainable and Dresden as a real estate location. Innovative developments from an even better place to live. Our agenda includes not only mobility, Dresden are the future of construction such as HeliaFilm®, an Dresden’s positive economic development, sustained population energy and the climate but also social and economic development. ultralight, flexible solar film which can be put to almost unlimited use growth and increasing purchasing power make it an attractive This means making the city greener while also promoting the idea of in building façades, or high-performance carbon-fibre-reinforced location for investors. And it has plenty to offer them, whether that a “smart city” in which everything is connected. concrete. Dresden’s real estate and housing policy means managing might be commercial or residential real estate, or property-related dynamics and changes in a responsible manner; developing the services. Industry- and business-friendly policies, clever financial This process is taking place under the watchful eye of business, city as a residential location based on actual needs. Last year this management and freedom from debt allow us to invest in the future. research, Dresden’s citizens and the city government. As part of the resulted in the construction of more than 5,500 homes. The number national “Future City 2030+” contest we have developed a vision of unoccupied buildings has dropped further to 6.5 per cent, and by I would like to invite you to discover Dresden’s industry, research for the future. Now, the Federal Ministry of Research is calling upon 2020, another 15,500 homes will be needed. and property market – both on the pages of this brochure and, of us to develop specific plans for implementing our visions, to be course, here in Dresden. prepared by 2018. With that in mind, we are also supporting the Looking to the future, we are also promoting cultural development TU Dresden’s applications for the next round of the Federal and and making space for creativity. We are investing almost 200 million Regional Initiative for Excellence. The bid for the title “European euros in rebuilding the Kulturpalast as the new concert hall for the Capital of Culture 2025” will also boost social development as well Dresden Philharmonic Orchestra and converting the old “Kraftwerk Dirk Hilbert as strongly stimulating tourism and industry. Art and culture have Mitte” power station to house two city theatres. The theatres will be Mayor of the City of Dresden Future. City. Dresden. Trend in the number of people in employment Facts·Figures·Background Source: Saxon Regional Statistics Office 2016 on the 2016 property situation People in employment 284 600 303 300 308 400 319 400 328 000 Mio 2005 2008 2011 2014 2030* * City Planning Office forecast – our own estimates, 2016 Pricing overview for individual home-building Source: Dresden committee of valuation experts New-build semi-detached and terraced houses Single-occupancy houses Location €K euros/m2 Average purchase price Purchase price range Detached houses Good 555 3 105 – 3 865 Mid-range 320 1 915 – 3 285 Semi-detached houses All 355 1 370 – 4 548 End-of-terrace houses All 410 2 185 – 3 450 Mid-terrace houses All 310 1 705 – 2 565 Semi-detached + terraced houses prior to 2012 Single-occupancy houses Location €K euros/m2 Average purchase price Purchase price range Detached houses Very good 480 1 145 – 3 970 Good 305 575 – 4 170 Mid-range 235 220 – 3 965 Semi-detached houses Very good 290 1 790 – 2 690 Good 235 840 – 2 815 Mid-range 210 480 – 3 135 End-of-terrace houses Good 210 1 350 – 3 420 Mid-range 265 950 – 3 305 Mid-terrace houses Good 170 1 100 – 3 200 Mid-range 195 670 – 2 825 2 Sales trend for unbuilt plots ready for development Mean property prices Source: Dresden committee of valuation experts Source: Dresden committee of valuation experts Plots Plots unbuilt, ready to develop for single-occupancy houses 573 588 529 485 403 385 Purchases 64 91 75 147 107 182 million 138 150 148 169 192 194 per m2 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Sales trend for home ownership Source: Dresden committee of valuation experts Plots Home ownership for multi-occupancy buildings 2904 4312 3545 3269 3998 3777 Purchases 353 418 449 434 552 601 459 million 205 236 293 249 298 318 per m2 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Purchase prices for living space, initial sale Source: Dresden committee of valuation experts Period building Building land New build (renovated) for commercial users 3 210 2 820 2 710 3 850 3 330 3 190 Ave. per m2 171 111 95 111 102 92 per m2 Location: good mid-range basic Location: good mid-range basic 2010 2011 2012 2013 2014 2015 3 Market opportunities in Dresden – both constant and dynamic Prager Carree Dresden – a top address for all types of Baywobau Baubetreuung GmbH and Cortez GmbH, intend to invest making it the highest level so far in the new millennium. The volume property investment more money this year in new residential units. of transactions concluded on the Dresden investment market rose 14 per cent or 133 million euros in 2015 to reach roughly 1.1 billion euros. In the boom year of 2006 the figure was only slightly higher Land, office space, retail, homes – Dresden’s property market prom- More inhabitants at 1.34 billion euros. Back then this tended to be in the field of ises to remain exciting and attractive for all types of future property commercial property, while the focus since 2015 has been more on investment. add to the dynamism residential investment. Varied employment opportunities, chances for graduates, the As Dresden’s population and number of households increase, the increasingly attractive city centre and housing, innovation and dynamism of the property market is rising in every segment. The Home ownership popular knowledge transfer at the university and other academic institutions gross domestic product is continuously growing. and private sector organisations are all attracting new members of Interest in privately owned property is growing in Dresden, the population and create a good atmosphere for starting a family. Job seekers are in good hands in the Saxon capital: there is a wide partly from the simple fact that home ownership figures are still Dresden was only recently named Germany’s most female-friendly range on offer in every economic sector, including industry, the city’s comparatively low in the city. Interest in purchasing a property is city. The criteria for this included work and career opportunities, administration, regional institutions which are based in Dresden, spurred on by the low interest rate, while at the same time there income and options for gaining qualifications; in these categories, retail, transport and information technology.
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