CITY SHORTY – DRESDEN.

Dresden: Monetary turnover by sub-market (asset and share deals).

Monetary turnover generated with sales on the traditional real estate market (asset deals) totalled about EUR 2.2 billion in 2021, according to preliminary information of the Dresden Municipal Valuation Committee. This constitutes a 25 % or EUR 737 million decline when compared to the previous year (2020: about 2.9 billion). However, compared to the ten-year average (Ø 2011 - 2020: EUR 2.0 billion), this result is some 8.8 % or EUR 177 million higher. Added to conventional market transactions are the sales of company shares (share deals) that report an 18.8 % or EUR 60 million higher transaction volume of now EUR 380 million in a year-on-year comparison (2020: EUR 320 million). This means that the total turnover in the report year amounted to EUR 2.6 billion (2020: EUR 3.3 billion).

The transaction volume on the market for developed land (properties) fell by around 38 % in 2021 compared to the previous year and amounted to EUR 1.20 billion, yet money turnover is a moderate 1.4 % higher than the ten-year average (Ø 2011 - 2020: EUR 1.86 billion).

Especially the trade with land for residential and commercial properties (+ 144 %), office and retail properties (+ 62 %) and commercial properties (+ 47 %) recorded outstanding increases Compared to the previous year.

Dresden: The market for office space.

A record take-up result of 120,000 m² was registered on the Dresden office market. The previous year's result (2020: 92,000 m²) was therefore exceeded by a striking 30 % within a year, and the ten-year average by as much as 34 %. An analysis of take-up by size class shows an above-average take-up result in the medium and large space segments in 2021. The trend in favour of larger transactions that began in recent years thus continued in the reporting year.

In the top segment of the office market, prime rents (average of the 3-5 % of the most expensive letting premises) rose further. With EUR 16.00/sqm, the prime rent is much higher than the ten-year average of EUR 13.00/sqm.

The average rent in city centre areas rose to currently EUR 13.00/sqm. The adjacent city centre periphery registered a significant positive development of 13.4 % for new leases, translating into an average rent of EUR 11.00/sqm in 2021 (2020: EUR 9.70/sqm).

Vacancies continued to fall during the year and now amount to 3.2 % of the total supply of around 2.5 million sqm.

The completion levels of 30,000 sqm were much higher than the ten-year average of 18,500 sqm.

Dresden: Monetary turnover in the residential property market (asset deals).

The transaction volume on the entire residential market in Dresden (undeveloped, developed, freehold and partial ownership properties) amounted, according to preliminary evaluations of the Municipal Valuation Committee Dresden, to approx. EUR 1.4 billion. This means that the result is about 10.9 % lower than in the previous year (2020: just under EUR 1.6 billion) but 25 % higher than in long- term average (Ø 2011 - 2020: approx. EUR 1.1 billion).

Rents under new leases for existing buildings amounted to between EUR 6.50/sqm and EUR 11.50/sqm in 2021. On average, the rent for existing flats rose from EUR 8.10/sqm in the previous year to EUR 8.20/sqm.

Rents also continued to rise moderately in the segment new flats. An average of EUR 11.50/sqm is paid here when new leases are concluded. Currently, rents between EUR 9.20/sqm and 15.80/sqm are being charged.

As regards all new residential construction (residential and mixed-use residential buildings), a total of about 2,875 (2020: 3,081) building permits were issued in the report year. When compared to the long-term ten-year average (Ø 2011 - 2020: 3,645 residential units), this is a 21 % decline.

Dresden’s housing market continues to experience a phase of rising tension. The large increase of the number of households, especially of smaller households, already resulted in higher demand for affordable housing in the past years.