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Dresden vs Leipzig property investment 2026: prices and yields
Leipzig flats list at €3,025/m² for a 4.8% gross yield, Dresden at €3,200/m² for 4.3%. What remains after Saxony's 5.5% transfer tax and a mortgage.
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Leipzig is cheaper and yields more, mostly in larger flats
On current asking-price data, Leipzig wins on yield. Apartments in Leipzig are listed at a median €3,025 per m² and newly let flats ask €12.00 per m² in cold rent, a gross rental yield of 4.8% (Leipzig property prices, as of 25 October 2026). Dresden lists at €3,200 per m² with asking rents of €11.49 per m², a gross yield of 4.3% (Dresden property prices, same date).
As of 25 Oct 2026 | Leipzig | Dresden |
|---|---|---|
Median asking price per m² | €3,025 | €3,200 |
Middle half of listings | €2,559 to €3,661 | €2,611 to €4,468 |
Typical flat | 68 m² for €199,990 | 70 m² for €230,000 |
Asking cold rent per m² | €12.00 | €11.49 |
Gross rental yield | 4.8% | 4.3% |
Price-to-rent multiple | 21.0 | 23.2 |
Flats for sale | 1,999 | 1,115 |
Median days on market | 15 | 13 |
These are medians of listed asking prices and asking rents, recomputed daily. They are not sale prices, and actual sale prices are often lower.
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Two-room flats cost the same in both cities
The headline gap hides where the difference sits. A typical two-room flat is listed for €160,000 in both cities. Typical two-room rents are €678 a month in Leipzig (Leipzig rents, as of 25 October 2026) and €665 in Dresden (Dresden rents, as of 26 October 2026). Set against the same €160,000, that is a gross yield of about 5.1% in Leipzig and 5.0% in Dresden, which is close to a tie.
The cities part ways from three rooms upward:
Typical flat | Leipzig price | Leipzig rent | Gross yield | Dresden price | Dresden rent | Gross yield |
|---|---|---|---|---|---|---|
2 rooms | €160,000 | €678 | 5.1% | €160,000 | €665 | 5.0% |
3 rooms | €239,000 | €847 | 4.3% | €275,000 | €813 | 3.5% |
4+ rooms | €472,000 | €1,600 | 4.1% | €539,000 | €1,489 | 3.3% |
Typical prices and typical rents come from different sets of listings, so treat the yields in this table as approximate. The pattern is still clear. Larger flats in Dresden are listed for more than in Leipzig (€4,362 against €3,735 per m² for four rooms or more) without a matching rent premium. If you are looking at small flats, choose on the building and the street rather than the city.
Saxony's transfer tax has been 5.5% since 2023
Both cities are in Saxony, so both pay the same Grunderwerbsteuer (property transfer tax). Since 1 January 2023 the rate is 5.5% under the Saxon rate law. Before that, the federal rate of 3.5% from § 11 GrEStG applied, so articles quoting 3.5% for Saxony are out of date. The tax is rounded down to the full euro.
With the default assumptions of the InvestBud closing costs calculator (notary 1.5%, land registry 0.5%, broker 3.57% including VAT), the typical flat in each city costs:
Closing cost | Leipzig (€199,990) | Dresden (€230,000) |
|---|---|---|
Grunderwerbsteuer 5.5% | €10,999 | €12,650 |
Notary 1.5% | €3,000 | €3,450 |
Land registry 0.5% | €1,000 | €1,150 |
Broker 3.57% | €7,140 | €8,211 |
Total | €22,138 | €25,461 |
Without a broker the totals drop to €14,999 and €17,250. Add closing costs to the price and the gross yield falls to about 4.3% in Leipzig and 3.9% in Dresden, before any running costs.
With a mortgage, Leipzig's rent covers the payment and Dresden's falls just short
Take the calculator's financing defaults: 20% down, 3.5% interest, 30 years. These are assumptions, not a bank quote. The Leipzig flat needs a loan of €159,992 and a monthly payment of about €718. At €12.00 per m², its 68 m² ask €816 in cold rent, which leaves about €98 a month before the owners' association fee (Hausgeld), maintenance and vacancy. The Dresden flat needs €184,000 at about €826 a month, against €804 of cold rent for 70 m². It starts €22 a month short.
Neither figure is a profit. Part of each payment is repayment of principal, which builds equity, and the costs a landlord cannot pass on to tenants still have to come out of that margin. The cash flow calculator lets you add them for a specific flat.
Leipzig's district spread is wide enough to matter
Leipzig's page breaks yields down by district. Leutzsch shows 6.7% on 53 listings and Anger-Crottendorf 5.6% on 63, while Schleußig shows 3.7% and Plagwitz 3.9%. Several districts have fewer than 30 listings, where one or two flats can move the median, so check the listing count before you read much into a single figure. The Dresden page has no district breakdown yet. Its wider middle range (€2,611 to €4,468 per m²) means two Dresden flats can differ by more than the gap between the two city medians.
The data does not show vacancy, the condition of a building or the reserve in the owners' association account. Those come from the documents for a specific flat. More on each city is on the Leipzig and Dresden pages.
Frequently asked questions
What is the Grunderwerbsteuer in Saxony in 2026?
5.5% of the purchase price, for all purchases in Saxony including Dresden and Leipzig. The rate has applied since 1 January 2023 under the Saxon Grunderwerbsteuersatzgesetz.
Are these the prices flats actually sell for?
No. They are medians of asking prices and asking rents from publicly listed flats. Sale prices are often lower, so a gross yield based on asking prices is an upper estimate.
Which city is better for a first small flat?
On current data, two-room flats cost about the same in both cities and yield about the same gross. The specific building, the Hausgeld and the condition of the flat will decide more than the city.
This article is not tax, legal or investment advice.
