Renting in Dresden: A look at 30 years of price explosion!

Renting in Dresden: A look at 30 years of price explosion!

In Dresden today it is not just culture that is flourishing, the development of the housing market is also causing a stir. The current situation shows that rental prices have increased dramatically in recent decades. To understand the dimensions of this development, it is worth taking a look at the figures from the last 30 years. According to Sächsische, the average basic rent in Dresden has more than tripled since 1995 - from 2.83 euros back then to an impressive 7.62 euros per square meter in 2024. The rent per square meter has risen even more rapidly, from 4.78 euros in 1995 to 10.78 euros today, which represents an increase of 6 euros per square meter.

Specifically, this means that a 70 square meter apartment in Dresden conditions from 1995 was available for just 334.60 euros per month, while the same space in 2024 costs 754.60 euros. A whopping increase of over 125 percent, which poses challenges not only for tenants but also for those looking for accommodation.

District analyses

Rental prices vary significantly depending on the district. In 1995, tenants in the old town had to make do with 4.85 euros per square meter. Today that price has risen to 11.61 euros – an increase of 140 percent. There is also a clear trend in Gorbitz, where rents were 4.78 euros in 1995: the price has now almost doubled to 10 euros per square meter. Prohlis remains behind, but still saw an increase of 10.14 euros, which corresponds to an increase of 115 percent.

As far as incomes are concerned, these also experienced a positive development. The household net equivalent income rose from 920.30 euros in 1995 to a total of 2,200 euros in 2024 - an increase of almost 140 percent. Despite these encouraging increases in income, there are regional differences: In Prohlis, income is almost 600 euros below average, while the old town is around 100 euros above. Here, too, it can be seen that the gap between income levels is slowly but surely widening.

Rental price development and vacancies

In Dresden's current rental market, the average basic rent has risen to 5.40 euros per square meter, which corresponds to an increase of 7 percent within the last five years. This is particularly clear in newer residential complexes, where rents for apartments built after 2000 increased by 11 percent to 6.65 euros, as Statistik Dresden reports. Compared to Berlin, where rents increased by 35 percent, Dresden lags behind - but the demand for living space here remains high.

Another challenge for the Dresden housing market is the high vacancy rate in the office sector, which is 11.9 percent of the approximately 2.4 million square meters of office space. This suggests that adjustments are also needed in the office market to meet local demand.

The housing problem in Dresden shows how important it is to create offers that can keep up with rising prices. Tenants and landlords should always keep an eye on the increased prices. Information on this is provided by the current rent indexes, which are based on analyzes of rental apartments listed on real estate portals and are available in over 500 cities in Germany, according to the Housing Exchange.

In summary, Dresden is experiencing constant change in the housing market, which brings with it both opportunities and challenges. It remains to be seen how the situation will develop in the coming years, but Dresden residents can hope for the creation of more affordable housing.