Dresden’s Real Estate Market: Stable Prices and Rising Demand
Key Findings
The real estate market in Dresden, Germany, experienced a surge in demand and an increase in transactions in 2024, according to preliminary data released by the city. Despite the increased activity, prices remained stable compared to the previous year.
Residential Market
- Existing Eigentumswohnungen (Condominiums): The average purchase price for a resale condominium stood at approximately €2,610 per square meter, close to the previous year’s value of €2,630.
- New Eigentumswohnungen (Condominiums): In the new construction market, there were price reductions for first-time buyers. The average price dropped from around €6,000 per square meter to €5,565, representing a decline of approximately 7%.
- Number of Transactions: The number of condominium transactions more than tripled, from 82 to 245.
Commercial Market
- Number of Purchases: The Dresden Appraisal Committee for Property Values reported a significant increase in purchase transactions in 2024. The number of recorded transactions reached 4,563, a 43% increase compared to the previous year’s 3,195.
- Sales Volume: The total sales volume for properties in Dresden exceeded €2 billion, representing a jump of about 47% over the previous year. This translates to an increase of approximately €680 million.
- Developed Properties: Developed land parcels accounted for the majority of the sales volume, with transactions worth around €330 million.
Land and Housing Market
- Bauland (Building Land): The prices for building land earmarked for the construction of detached single-family homes decreased by 11% to €320 per square meter.
- Single-Family Homes: Detached single-family homes built after 1992 were traded at an average price of €4,265 per square meter of living space, down from €4,370 the previous year. The median purchase price for such homes was approximately €565,000.
- Semi-Detached Homes: Semi-detached homes sold for an average price of €4,210 per square meter, corresponding to a median purchase price of approximately €530,000.
Conclusion
The Dresden real estate market in 2024 was characterized by stable prices, increasing demand, and a rise in transactions. The residential sector saw significant growth, particularly in the condominium market, while the commercial and land markets also experienced strong activity. Despite some price adjustments in certain segments, the overall market remained resilient and provided opportunities for both buyers and sellers.
