Once you have considered the many good reasons and sound advantages of diversifying your investment portfolio into offshore property, which we discussed here, your next question may quite rightly be: so, where in the world should one invest?
Among the many excellent global investment destinations to consider, Leipzig in Germany stands out. In recent years it has become one of Europe’s hottest property investment markets.
In respect of the three key determinants that define a sound offshore property market – economy, population and infrastructure – Leipzig scores a resounding A-plus. But this dynamic city also achieves excellent marks in many other respects, making it very attractive for foreign property investors and explaining why it has become such a sought-after property investment location.
Since the fall of the Berlin Wall, Leipzig has these past 25 years reinvented itself. Today it is Germany’s 8th largest and fastest-growing city, while its astonishing economic, artistic and cultural renaissance has turned it into one of Europe’s hippest cities. Let’s take a closer look.
High-growth, broad-based economy
The German government’s Leipzig 2030 blueprint is behind the city’s rapid economic development and transformation. Today it is a leading national and international centre of business, arts, sciences, technology and innovation. Leipzig 2030 focuses on economic development, housing, transport, technology, employment, open spaces, the environment, culture, heritage preservation, education and research, and social and sports facilities.
The city’s industries are also being diversified across a broad range of sectors alongside the development of 5 high-growth industries, namely healthcare and biotech, logistics, media and creative, automotive and suppliers, and energy and the environment. Global giants like BMW, Porsche, Siemens and DB Schenker already have a strong presence here.
Smart city focusing on start-ups
Being chosen to be part of the European Union’s 5-year €25 million ‘Triangulum’ project, has made Leipzig into a Smart Infrastructure Hub that brings together start-ups and upcoming technology companies in the field of energy and the Internet of Things. Founders, engineers, computer scientists and creatives are being drawn here and an estimated 200-250 start-ups are currently operating in the city.
Transport & Infrastructure Hub
Leipzig is a centrally located German, European and international transport hub. It is Europe’s fifth largest cargo airport and is situated at the centre of the network of trans-European transport corridors, attracting the likes of DHL, Kuehne & Nagel, AeroLogic, Lufthansa Cargo and Future Electronics to centre their operations here.
The city is at the centre of the German Railway Network and part of an international rail container route that connects all the way to China. Intercity express services put the city just 1 hour from Berlin and 3 hours from Hamburg, Frankfurt or Munich. The city itself has excellent public transport infrastructure and services that received a €30 million investment boost in 2018.
A fast-growing population
After an initial exodus of people from the city following the fall of the Berlin Wall in 1989, the city regained popularity in the past decade. Its infrastructure, opportunities and a modern, vibrant and knowledge-based economy have drawn large numbers of innovators, entrepreneurs and ambitious individuals here.
The city’s population growth is actively encouraged by the German government. Today Leipzig is home to a youthful, well-educated population that is expected to increase by 16% to 700,000 inhabitants by 2035.
As a result of its revitalisation and rapid growth, Leipzig has experienced a property boom, but remains very affordable among Germany’s eight largest cities. Prices are around 60% of Berlin’s property market. Popular with renters and purchasers, the vacancy rates are low at just 2%. It is expected that the demand for housing across the city will continue to increase, driving property prices and rents upwards.
Find out more
If you’d like to find out more about the excellent opportunities and advantages of investing in international property in Leipzig or elsewhere, contact Carrick today at [email protected] to set up a meeting with one of our wealth and investment specialists.