Is real estate investment worthwhile in Magdeburg?
- Magdeburg is a city with 238,697 inhabitants in the state of Sachsen-Anhalt.
- The median purchase price is €2,629 per square metre – average prices compared to the national average.
- Purchase prices have risen by 9.8% over the last five years.
- Compared to the national average, an average gross rental yield can be achieved here: between 3.9% and 4.5% (average 4.2%).
- The purchase-price factor is about 22 years.
- The population, with an average age of 45.6 years, is of average age compared to other German municipalities.
- The population has grown by 3.3% since 2008 (about 0.3% per year).
- Unemployment at 7.7% is above the national average.
AI Location Report
Magdeburg is positioned with an average price per square metre of 2.629 € and a price-to-yield factor of 23,6 in the German comparison. Rents (avg. 8,91 €/m²) reflect a good rental yield.
📊 Local Metrics & Investor Check
Strategy Classification: Cashflow City
Above-average rental yield, well suited for immediate cashflow.
Above-average rental yield, well suited for immediate cashflow.
Price-to-Rent Ratio
23,6 ×
Years of cold rent until amortization
Avg. gross rental yield
4,23 %
Range: 3,94 % – 4,50 %
Value appreciation (5 y.)
+9,81 %
≈ 1,96 % p.a.
📈 Current Market Overview & Price Ranges
| Metric | Average | Market Range (Min – Max) |
|---|---|---|
| Purchase Price | 2.629 €/m² | 2.280 € to 3.152 € |
| Rent (cold rent) | 8,91 €/m² | 7,99 € to 11,81 € |
| Yield (affordable apt.) | 4,21 % | Typical for smaller / cheaper apartments |
| Yield (expensive apt.) | 4,50 % | Premium locations, focus on value growth |
📉 Historical Market Dynamics
| Period | Purchase Prices | Rents |
|---|---|---|
| Last Year | -1,59 % | -16,26 % |
| Last 2 Years | -1,30 % | -20,52 % |
| Last 5 Years | +9,81 % | +2,53 % |
| Last 10 Years | +52,93 % | +18,17 % |
📅 Prices Over the Years
| Year | Purchase Price avg €/m² | Rent avg €/m² | Yield % |
|---|---|---|---|
| 2011 | 1.053 | 5,54 | 6,31 |
| 2012 | 1.291 | 5,54 | 5,15 |
| 2013 | 1.494 | 5,93 | 4,76 |
| 2014 | 1.537 | 7,02 | 5,48 |
| 2015 | 1.644 | 7,67 | 5,60 |
| 2016 | 1.719 | 7,54 | 5,26 |
| 2017 | 1.867 | 7,37 | 4,74 |
| 2018 | 1.781 | 7,87 | 5,30 |
| 2019 | 2.106 | 7,68 | 4,38 |
| 2020 | 2.238 | 8,32 | 4,46 |
| 2021 | 2.394 | 8,69 | 4,36 |
| 2022 | 2.352 | 9,21 | 4,70 |
| 2023 | 2.377 | 10,02 | 5,06 |
| 2024 | 2.664 | 11,21 | 5,05 |
| 2025 | 2.672 | 10,64 | 4,78 |
| 2026 | 2.629 | 8,91 | 4,07 |
🧮 Sample Investment Calculation
Interactive calculation for an apartment in Magdeburg. Adjust values:
Acquisition Costs
Total Purchase Price –
Brokerage Fees (7 %) –
Property Transfer Tax (3.5 %) –
Total Investment –
Income & Yield
Rental Income (duration) –
Profit –
Yield p.a. –
🗺️ Roadmap for Beginners in Magdeburg
Step 1: Check financing capacity
Clarify budget and equity. Use the financing check in the sidebar.
Step 2: Set up local property searches
Search property portals for listings in Magdeburg and the surrounding area.
Step 3: Viewing & property inspection
Review owners' association minutes. Note structural defects and reserve funds.
Step 4: Purchase price negotiation
Price-to-yield factor 23,6 – use as a solid negotiation basis.
Step 5: Notary appointment & land registry
Factor in purchase costs (brokerage, transfer tax, notary).