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Future. City. Dresden – Facts, Figures, Background Information On Future. City. Dresden Facts · Figures · Background information on the property location in 2015 1 Contents 1 Innovative solutions for Dresden, 8 | 9 The campus is growing city of the future 10 | 11 Homes and living 2 | 3 The property market: 12 | 13 Dresden’s vibrant city centre facts and figures 14 | 15 At home in the centre of Europe 4 | 5 Surge in demand in the property 16 | 17 New addresses for development market 6 | 7 Space for innovation and ideas Appendix Current projects for the future The flourishing city in eastern Germany Saxony’s capital city Dresden is a prime example of a successful city: the population is growing, residential construction is booming, rents are rising. What’s more, the city is also on a sound economic footing. A successful model for eastern Germa- ny, illustrating that the Dresden property market is as attractive to investors, project developers and users as ever before. In an exclusive survey for Handelsblatt, residential market analysts at vdpResearch investigated the levels of purchase prices and rents for apartments and houses. As in 2014, Dres- den is one of the most popular residential property locations in Germany. Source: HANDELSBLATT (Trendviertel 2015) 22 June 2015 Innovative solutions for Dresden, city of the future Dresden is a dynamic, growing city at the heart A dynamic business location, an excel- tinue to make the city an attractive location of Europe, a source of knowledge and creativ- lent city of science, an attractive property for investors. ity, and the driver of economic and social de- location and a great environment for families: From commercial or residential proper- velopment for the entire region – a high-tech that is how the Saxon city on the Elbe put ties to interesting office locations or proper- location with a high standard of living. itself forward at EXPO REAL 2015. We have a ty services, Dresden has lots to offer in every Professionals and scientists from all over vision for the city of the future: Dresden area. With its business- and economy-friend- the world are attracted to Saxony’s capital 2030+. Together we want to make our city ly policy, smart financial management and city. The people who live here feel at home in sustainable and a place worth living in. The absence of debts, the city is able to invest in our city. With more than 540,000 inhabitants, introduction of new technologies and new the community’s future – in its quality of life, Dresden is facing the challenge of transform- infrastructures will also impact positively on in art and culture, in even more family-friend- ing itself into a sustainable urban region – not Dresden as a property location. ly facilities, and in the infrastructure. only in terms of mobility, energy and climate, We are developing an energy-efficient, On the following pages you will find but also with regard to our social and eco- low-resource research and innovation loca- facts and information about business and nomic development. Creating more green tion: the East Dresden science hub. Here we science in Dresden, on the property market spaces in the city is just as much an issue as are creating development space for demon- and on a selection of investment projects. building a smart city in which everything is stration properties and pilot projects, along networked. We have already put a wide range with space for businesses, start-ups and of basic measures in place to make this hap- service providers. The aim is to use energy pen, such as smart traffic control models and generation, storage and conversion technol- technologies like Fraunhofer IVI’s fast-charg- ogies researched here in Dresden wherever ing electric buses and the energy and climate possible. Dirk Hilbert protection programme. Likewise with one eye on the future, we Mayor of the City of Dresden Dresden’s property and homes policy is are promoting the city’s cultural development informed by the desire to control this dyna- and creating space for creative ideas. The city mism and transformation in a responsible is investing almost €200 million in developing way. We are working on strategies for devel- Kraftwerk Mitte as a theatre complex with oping Dresden as a residential location in a two stages and in the rebuilding of the Kul- way that keeps pace with demand. Thus more turpalast to create a new concert hall for the than 4,200 new homes were built last year, Dresden Philharmonic Orchestra. and the trend is continuing to rise. With va- Our positive economic development, cancies currently below 7 per cent, more than steady population growth, rise in purchasing 20,000 new homes will be needed by 2025. power and excellent tourism numbers con- 1 Hotels opened in Dresden Forecast of Dresden’s future population figures Source: Dresden Office of Statistics 600 700 304 2015 585 566 000 541 000 502 473 March: Star Inn April: Gewand- in the Haus haus Hotel Altmarkt Dresden Forecast 2001 2007 2014 2020 2030 June: Holiday Inn Am Zwinger 2016 Hampton by Hotel am The property market: Hilton, Neumarkt, Ringstrasse Jüdenhof facts and figures Hotel Palaisplatz Top returns in the property market Source: Aengevelt-Research, bulwiengesa AG, RIWIS 2015 Offices Retail Residential 5,9 5,8 5,5 5,5 5,5 5,3 5 4,6 4,7 4,5 4,5 4,4 4,4 4,4 4,2 4,2 4,2 4,1 4,2 3,7 3,6 Berlin Frankfurt/Main Hamburg Cologne Munich Dresden Leipzig Berlin Frankfurt/Main Hamburg Cologne Munich Dresden Leipzig Berlin Frankfurt/Main Hamburg Cologne Munich Dresden Leipzig ‘A cities’ ‘B cities’ ‘A cities’ ‘B cities’ ‘A cities’ ‘B cities’ average average average average average average 4,7 5,7 4,3 5,4 4,2 5,6 2 Average land prices in €/m2 Purchase prices for living space, Source: Dresden Committee of Experts on Real Estate Valuation initial sale 2014 (average in €/m2) Source: Dresden Committee of Experts on Real Estate Valuation Plots for individual houses 132 136 138 150 148 169 192 3 400 3 220 Properties for residential blocks 204 232 205 236 293 249 298 3 060 3 120 2001 2007 2014 2020 2030 Commercial building land 2 710 2 950 167 109 171 111 95 111 102 2008 2009 2010 2011 2012 2013 2014 Location New building Renovated period building 552 Development of sales for home ownership Source: Dresden Committee of Experts on Real Estate Valuation € 449 418 € 434 353 € € [Mio. € = € millions] € 285 286 € € Purchases 2 643 2 384 2 904 4 312 3 545 3 269 3 998 2008 2009 2010 2011 2012 2013 2014 Development of sales of unbuilt land ready for development Source: Dresden Committee of Experts on Real Estate Valuation 147 107 [Mio. € = € millions] € 91 81 75 64 € 54 € € € € Purchases € 580 570 573 588 529 485 403 2008 2009 2010 2011 2012 2013 2014 3 Â www.dresden.de/ exporeal ‘For capital investors operating nationally, Saxony’s capital city is one of the preferred investment centres outside of the top 7 locations.’ Andreas Kunert Senior Analyst Property Market Research, vdpResearch GmbH 1 Surge in demand in the property market 2 1 Franklin Garden in Südvorstadt Strong growth in Demand for home 2 Townhouses in the Bramsch area, apartment buildings ownership on the rise Friedrichstadt 3 Townhouses at Herzogin Garten Rents and purchase prices for apartments Sales of new apartments have risen again. 4 The World Trade Center Dresden houses the technical city administration offices and houses have developed more or less in According to the Committee of Experts on such as the City Planning Office, the parallel since 2010. The highest increases Real Estate Valuation, a total of 518 new Land Survey Office, the Construction have been seen in purchase prices for apart- apartments were purchased last year (a rise Supervision Office and the Office of Economic Development. ments, which rose by 5.4 per cent last year of 12 per cent on 2013). The proportion of alone. In terms of the development of con- new homes in the total number of transac- struction activity, the additional demand for tions therefore rose to more than 14 per accommodation could be more than met at cent. The total number of residential sales the current annual rate of construction. also rose in 2014: around 3,630 properties Construction activity picked up noticeably were sold, an increase of just under 8 per last year. With a total of 1,142 new homes cent on the previous year. When these sales completed, the previous year’s levels were figures are viewed in proportion to the exceeded by 40 per cent (+60 per cent over number of residents, the great popularity of 10 years). At 52 per cent, growth in the Dresden as an investment location becomes construction of apartment buildings was quite clear: whereas the number of homes particularly strong, which will benefit both sold per 1,000 inhabitants in Dortmund and the rental and owner-occupier markets Nuremberg was 3.5 and 6.7 respectively, the equally. rate in Dresden was 6.9. Last year the total 4 3 4 value of home purchases in Dresden amount- Rising prices and buoyant investments in maintenance and modernisa- ed to a massive € 512.1 million. This represents tion totalling at least € 90 million in the cur- a 17 per cent increase in transaction volume construction activity rent year alone. The increasing housing over 2013. The average purchase price per shortage is also reflected in levels of rents: property was € 141,000. The market for Despite the noticeable upturn in the con- up by 3.7 percent, rents rose at a faster rate houses, on the other hand, is largely stable struction of new homes, property purchase last year than in 2013.
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