According to analyses by market expert Realogis, industrial real estate in eastern Germany is experiencing a major upswing and will continue to attract the attention of investors in the future. East German logistics markets are so interesting because not only are land prices affordable, but many properties also have a very good infrastructure. Likewise, there is still a sufficient workforce in many places in eastern Germany. The wage level on the labor market is quite low compared to the west.
These are just a few reasons why some eastern German cities offer good expansion opportunities for companies and opportunities for new business models. Investors are showing interest in eastern German locations, particularly in the logistics and industrial sectors as well as in production, retail and e-commerce. According to analyses by Realogis, the cities of Magdeburg, Leipzig/Halle and Erfurt are the main focus. Calculations show that around 800,000 square meters of space could be newly developed and used at these locations.
While rents on the logistics and industrial real estate market in Dresden are the highest at six euros per square meter, the price per square meter in Magdeburg is around 3 to 3.90 euros for existing real estate and 3 to 4 euros for new construction. Thanks to its good connections to the autobahn and inland waterways, Magdeburg is also an interesting location for industrial real estate. Further information on developments in the industrial property sector, market reports and forecasts on the effects of the Corona pandemic can be found on the Realogis website.
Source: Realogis
© photodune.net
