Capital: Dresden

Saxony

Saxony is an eastern German state with a strong industrial heritage and growing cities like Leipzig and Dresden.

Last updated: October 28, 2026
Editorially reviewed

Transfer Tax: 5.5%; €16,500 on €300,000
Asking price/m² (median): €2,603
Cold rent/m² (median): €6.75
Gross rental yield (median): 3.1%; No. 15 of 16 states

Asking prices and rents from online listings for apartments, as of November 3, 2026. Not notarised sale prices.

Saxony has about 4 million residents (end of 2025), 0.4% fewer than a year earlier. Its two largest cities are Leipzig and Dresden: Leipzig is still growing, while Dresden lost a few residents in 2025. The property transfer tax has been 5.5% since 2023. Live figures for Saxony's prices, rents and gross yield are shown at the top of this page.

Real Estate Market

Leipzig is Saxony's largest city, with 615,932 residents at the end of 2025. Dresden is the state capital and the home of the semiconductor industry, whose trade association calls itself "Silicon Saxony." Dresden's population fell by 0.4% in 2025. Apart from Leipzig and Chemnitz, which each grew by 0.7%, every district in Saxony lost residents in 2025; the Vogtlandkreis around Plauen fell most, by 1.2%.

Leipzig still added 0.7% to its population in 2025
The Vogtlandkreis around Plauen lost 1.2% of its residents in 2025, more than any other district in Saxony

Transfer Tax Details

Saxony has charged a Grunderwerbsteuer of 5.5% since 1 January 2023; before that it was 3.5%. That puts the state in the middle of the range, which runs from 3.5% in Bavaria to 6.5% in Brandenburg, North Rhine-Westphalia, Saarland and Schleswig-Holstein. On a purchase price of 200,000 euros the tax is 11,000 euros. Notary and land registry fees add about 1 to 1.5% of the price.

Investment Cities

Demand is concentrated in Leipzig and Dresden. Smaller cities have their own universities and employers, but most of them are losing residents.

Leipzig: Saxony's largest city, up 0.7% in 2025
Dresden: the state capital, with TU Dresden, a university of excellence
Chemnitz: Saxony's third-largest city, slightly larger in 2025; the exact location decides here
Freiberg and Bautzen: smaller towns; Freiberg is home to TU Bergakademie (the mining university), and Bautzen is a centre of the Sorbs with Sorbian cultural institutions

Frequently Asked Questions

What is the property transfer tax in Saxony?

Saxony has charged a Grunderwerbsteuer of 5.5% on property purchases since 1 January 2023. That is mid-range among the states, whose rates run from 3.5% to 6.5%.

Is Leipzig still a good investment or have prices peaked?

Nobody can say for sure whether prices have peaked. The population rose by 0.7% in 2025, and until 30 June 2027 the rent cap limits the rent when a flat is re-let. Base your numbers on the current prices and rents above, not on hoped-for price gains.

What are the risks of investing in eastern German cities?

Many smaller towns and districts are losing residents: in Saxony only Leipzig and Chemnitz grew in 2025, the Vogtlandkreis shrank by 1.2%, and Dresden also lost 0.4%. Before you buy, check the population trend and the vacancy in the specific district.

Cities with the highest yield in Saxony

Gross rental yield of cities with at least 30 listings for sale.

Rental yield ranking for Saxony: cities compared

Major cities in Saxony

Check an apartment in Saxony

A city's median says little about a single apartment. Enter the address, price and rent to see cash flow, net yield and taxes.