Leipzig: 700 new apartments - but rents continue to rise!

Leipzig: 700 new apartments - but rents continue to rise!

Johannisallee, 04103 Leipzig, Deutschland - in Leipzig are massive new construction projects, but they are not without challenges. The Leipzig Housing and Building Society (LWB) is planning the construction of 700 new apartments by 2024/25. Some of these are intended as social housing, which are reserved for the owners of a white residential authorization certificate (WBS). The average cold rental price for new apartments is 7.81 euros per square meter, while the inventory rents slightly rise to an average of EUR 5.98 per square meter. This development ensures concern in the city, especially in view of the increasing operating costs, which are further burdened by the expires of price limits for electricity and CO2 taxation. According to tag24.de, the LWB not only invests in new construction projects, but also in the renovation of existing stocks.

The foundation stone for an important apartment block in Johannisallee was laid at the end of May 2025. This block comprises 202 apartments, of which over half, namely 104, is funded by the Free State of Saxony. In February 2025, the LWB started the construction work on this largest new building project in Johannisallee, despite initial excitement about massive clearing in 2024. The planned U-shaped building ensemble contains nine apartment buildings in which 1 to 5-room apartments are being built in 7- and 8-storey. In the new building initiative there are also two commercial units and additional rooms for the neighborhood work, such as l-iz.de reports.

nature and quality of life in focus

The LWB attaches particular importance to the design of the outdoor facilities. The inner courtyard of the new apartment block is to be equipped with green areas, playgrounds as well as grill and table tennis courts. A large roof terrace will be available to the tenants, while the roofs are greened and equipped with photovoltaic systems. The shell of the project should be completed by July 2026, with a planned completion in April 2027.

The city of Leipzig has bound funding for a total of 2,893 new social housing since 2017. There are also another 504 social housing in modernization funding. For the years 2025 and 2026, a significantly higher assignment of the federal government is planned for social housing. Saxony is expected to receive around 174.4 million euros in 2025, of which 149.5 million euros are planned for social housing. The left faction in the Saxon state parliament calls for an increase in housing subsidies to operate the increasing demand for living space and to secure the quality of life in the city.

The financial challenges for the LWB should not be underestimated. The annual result decreased to 19.8 million euros, compared to 33.6 million euros in 2023. Future construction projects and investments are strongly dependent on decisions by state politicians in Dresden, so that municipal housing policy has to operate in a tense framework.