Dresden and Leipzig have best risk-return ratio in eastern Germany

05/12/2018

In eastern Germany, Dresden, Leipzig, and Rostock offer the best risk-return ratio for investments in existing housing in good locations. In medium locations, Dresden and Leipzig are again in the top 3 with Potsdam, for new construction investments Weimar takes third place after Dresden and Leipzig. This is the result of the current “Risiko-Rendite-Ranking” by Dr. Lübke & Kelber for 18 cities in eastern Germany. The ranking is based on a specific location risk in combination with a recommended minimum return. In nearly all 18 cities, equity returns of more than 4 % are possible, the ranking states – with an assumed equity rate of 55 % and 1.25 % interest fixed for ten years on financing. Good locations in Berlin fell short of the recommended minimum return. On the other hand, Berlin and Potsdam have the lowest location risk of all 18 cities.

 


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