Leipzig office market on the rise: less space, stable rents!

Leipzig office market on the rise: less space, stable rents!

On July 8, 2025, the office property market in Leipzig shows restrained market dynamics. The take-up of space in the first half of 2025 amounts to just 38,000 m², which is 36% below the long-term average and the previous year's level (59,000 m²). Sales were heavily impacted by the absence of major leasing deals over 5,000 m², which explains the weak balance sheet. While the first quarter was 16,000 m² and the second quarter was 22,000 m², over 68% of space sales are attributable to rental agreements of up to 1,000 m². On average over the last ten years, this proportion was 55%. In total, 25,800 m² were reported in this segment in the first half of the year, which is also below the historical average of 33,200 m².

The market development is influenced by an increased supply and an increasing pre-letting rate of 46%. The number of spaces under construction has fallen by 42% to 84,000 m² in the last 12 months, while vacancies have increased by 9% compared to the same period last year to 198,000 m², although still below the long-term average of 232,700 m². In addition, the proportion of medium-sized rental agreements (2,000 m² to 5,000 m²) increased to 22%, which is above the long-term average of 20%. Stability of rents is assessed as likely until the end of the year, with a prime rent that has remained constant at 21.00 euros/m² since the end of 2024 and an increase in the average rent to 13.20 euros/m², which corresponds to an increase of 6% within the last 12 months.

Economic conditions and influencing factors

Leipzig remains one of the most important economic centers in Eastern Germany, attracting investors with a well-developed infrastructure, a highly qualified workforce and a strategic location. In 2025, the office real estate market will face significant changes shaped by various economic factors, technological innovations and changing work models. The steady increase in regional GDP, particularly through investments in IT, logistics, biotechnology and science, is leading to an increasing number of start-ups and technology companies settling there.

The increase in population is strengthening the labor market and driving demand for commercial real estate. State funding programs create attractive framework conditions for companies. Nevertheless, macroeconomic factors such as inflation and interest rate fluctuations play a significant role in investment decisions.

Trends in the office real estate market

Current trends on the office property market in Leipzig show a preferred demand for hybrid offices and coworking spaces. Companies are increasingly relying on flexible rental solutions and distributed office concepts. There is a reduced demand for large office spaces, while compact workspaces and flexible workspaces become more popular. This is in line with the trend towards ecologically sustainable and energy-efficient buildings. The focus on ESG-compliant office buildings is driving increasing demand for energy-efficient office space with a low carbon footprint.

The increase in demand for premium office space cannot be overlooked either, especially in central districts such as Leipzig city center, Plagwitz and Südvorstadt. These areas particularly attract technology companies and research centers. Business parks and industrial parks offer competitive rents that are attractive to logistics and manufacturing companies, thereby promoting the growth of business parks.

Rental prices in Leipzig vary considerably. Average rental prices in the city center are between 15 and 20 euros/m², while in Plagwitz and Lindenau you can expect 10 to 14 euros/m² and in commercial areas 8 to 12 euros/m². Experts expect rental prices in central locations to increase by between 5 and 7% by the end of 2025.

In summary, it can be said that the office property market in Leipzig is still characterized by flexibility, sustainability and technological advances. Leipzig remains attractive for investments in office properties and has the potential to assert itself as a leading city in the office property sector. For further information about developments on the Leipzig office market, you can read the articles from Property Magazine and Erena be consulted.