Building land in Dresden is significantly more expensive

Accordingly, the square meter of ready-to-build land in Dresden in 2019 cost 441.79 euros. That is an increase of 236 percent compared to 2010 and 111 percent compared to 2015.

Dresden prices highest in Saxony

Nowhere in Saxony does building land cost as much as in the state capital. Even in the booming metropolis of Leipzig, the square meter price of 311.51 euros is over 100 euros lower than on the Elbe.

However, the trend in Leipzig is even steeper than in Dresden. Since 2015, building land prices have risen by 164 percent here. It is inexpensive to build across Saxony in the Vogtlandkreis, where a square meter costs just 29.60 euros.

Because of high rents and land prices, more and more Dresden residents are moving to the surrounding area. Young families in particular are looking for happiness there – and find land prices that are significantly lower. The price per square meter for building land in the Saxon Switzerland-Eastern Ore Mountains district has even fallen by 25 percent to 54.49 euros since 2015.

Munich: Building land is five times as expensive as in Dresden

Compared to other large cities in Germany, however, building land prices in Dresden are still relatively cheap. The Bavarian capital, Munich, is at the top of the table. Here, one square meter of building land costs 2,376 euros, more than five times that of Dresden.

Construction is also significantly more expensive in Hamburg (1,158 euros), Nuremberg (1,071 euros) and Frankfurt am Main (1,260 euros). The dream of owning a home can be realized most cheaply in the Uckermark (17.14 euros) and in the Elbe-Elster district (12.90).

The German Trade Union Confederation sees no reason to relax despite the moderate comparative values ​​in Dresden. Rather, they fear a price spiral that can hardly be stopped.

“As a result, rents continue to rise, because affordable apartments cannot be built on expensive land,” says André Schnabel, regional manager at DGB Dresden-Upper Elbe Valley.

DGB demands: Cities should be able to buy cheaply

Schnabel calls for the municipalities to be given more opportunities to influence land policy in their municipality or city. There is currently a debate in the Bundestag about the reform of the building code.

The federal government is planning that the municipalities should in future be given the right to advance sales on land that is lying fallow. The DGB is a thorn in the side of owners who are “unwilling to cooperate” and who do not develop their land – and one of the reasons why building land prices are so high.

That is why the political plan does not go far enough for Schnabel. “It is also important to introduce effective price limits so that the municipalities can purchase building land at prices below market value,” he says. Only then would this instrument be used by the municipalities, he is convinced.

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