The city of Leipzig is planning a controversial residential area in Heiterblick-Süd
Leipzig is planning a new residential area in Heiterblick-Süd with 4,000 apartments to create affordable living space and prevent speculation.

The city of Leipzig is planning a controversial residential area in Heiterblick-Süd
Leipzig is pursuing ambitious plans to build a new residential area in Heiterblick-Süd, a step that is both welcomed and critically questioned. The need for affordable housing has long been noticeable in the Saxon metropolis, especially in view of a study by the Institute for Urban and Regional Research at the University of Leipzig, which shows a shortage of around 10,000 apartments. Nevertheless, the loss of agricultural land raises concerns among the city council and citizens.
Most of the new development area on Paunsdorfer Allee is owned by the city, but there are also private owners. In order to prevent speculation with the non-urban sections, the city council has issued a statute on a special right of first refusal for the development plan No. 482 “Paunsdorfer Allee/Permoserstrasse City Quarter”. This right of first refusal allows the city to enter into any upcoming purchase contracts, but without being obliged to do so. However, the details of purchase prices and further measures cannot currently be predicted.
Building law and further planning
The decision to draw up a development plan for an area of 25 hectares in Heiterblick-Süd was made in 2024. However, a few steps are still necessary before the building permit is expected to be received in 2028. The planned building is expected to include around 4,000 apartments, with half of these units intended as subsidized housing. The development company LESG, a city-owned property development company, is entrusted with the implementation of the project.
What is particularly noteworthy is that apartments built in Leipzig in recent years have often been in the upper price segment. This shows that although many new residential projects have been realized, they often do not meet social requirements and the desire for affordable housing. The new project in Heiterblick-Süd is intended to take this need into account, but at the same time ensure that existing landscape protection and forest areas are preserved as local recreational areas.
Infrastructure and development
The Heiterblick-Süd area is well served thanks to its good connections to local public transport as well as the S-Bahn and tram. The quick accessibility of the city center is an additional plus that speaks in favor of the planned development. These factors show that sensible development of the area makes sense not only economically but also infrastructurally.
The latest developments are the result of a 2021 council decision calling for progress on Heiterblick-Süd. The idea of starting to create planning law by 2023 is based on the results of a future workshop from 2019. The city of Leipzig is securing land in Heiterblick through the right of first refusal in order to limit speculation opportunities and create the opportunity to create affordable housing. The resolution on the statutes was adopted on June 26, 2025 with an overwhelming majority of 56 votes in favor and three abstentions.
Overall, the plans for Heiterblick-Süd show that the city of Leipzig is prepared to take active action against the housing shortage, but it is essential to use the existing natural resources responsibly and to meet the needs of all citizens. After all, it remains to be seen how the market and needs will develop over the next few years.
For further information on the details and design of the plans, see the reports from l-iz.de and ratsinformation.leipzig.de.