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Leipzig vs. other East German cities - a location comparison by Sven Schwarzat

08-05-2025 10:49 AM CET | Industry, Real Estate & Construction

Press release from: Schwarzat Capital

Quality of life - an important factor when choosing a location (© )

Quality of life - an important factor when choosing a location (© )

In recent years, East Germany has undergone dynamic development that has changed the economic, cultural and social fabric in many areas. Leipzig in particular has established itself as a pioneer among the major East German cities. But how does the Saxon city fare in direct comparison with other major East German cities such as Dresden, Erfurt, Magdeburg and Rostock? A location comparison provides exciting insights - not only for investors, but also for companies, start-ups and newcomers. Sven Schwarzat, Managing Director of Schwarzat Capital GmbH, is someone who has been closely observing and monitoring this change for years.

Economic dynamism: Leipzig at the top

Leipzig is often referred to as the "boom center" of eastern Germany - and not without good reason. The city has enjoyed above-average economic growth since the turn of the millennium. Large companies such as BMW, Porsche and DHL have massively strengthened the business location. Leipzig's gross domestic product (GDP) per capita is now well above the East German average, excluding Berlin.

In comparison, Dresden has a strong microelectronics and semiconductor industry, but Leipzig scores with its much broader economic base. Magdeburg is currently trying to catch up with the planned Intel relocation, while Erfurt, the state capital of Thuringia, is particularly strong in the SME sector. Rostock benefits from the port and the maritime economy, but does not have the economic depth of Leipzig.

Sven Schwarzat sees Leipzig as a leader primarily because of its innovative strength: "Leipzig has understood how to combine traditional industry with digital business models. This is exactly what modern investors are looking for."

Labor market and skilled workers: Leipzig attracts talent

Another decisive location factor is the labor market. Leipzig has continuously created new jobs in recent years, particularly in logistics, the IT industry and the creative sector. The start-up scene is also flourishing - not least thanks to its proximity to Leipzig University and various research institutions.

While Dresden, with its university, is also a magnet for skilled workers, Leipzig is particularly attractive to young talent thanks to its internationality and urbanity. Rostock and Magdeburg find it more difficult to retain highly qualified staff in the long term. Although Erfurt offers security as an administrative location, it is less dynamic in terms of innovation.

Schwarzat Capital GmbH deliberately chose to locate its headquarters in Leipzig. "It was clear to us that if you want to grow, you need an environment that promotes innovation and retains talent. Leipzig offers exactly that," says Schwarzat.

Quality of life: living, culture and infrastructure

Leipzig scores points not only economically, but also for its high quality of life. The city has an exceptionally rich cultural offering - from the Gewandhaus Orchestra to the opera and alternative art in the Baumwollspinnerei. Leipzig also offers comparatively low rents, which is particularly attractive for young families and students.

In comparison, Dresden is similarly culturally strong, albeit with a more traditional focus. Erfurt offers a charming old town, but suffers from a stagnating housing market. Magdeburg and Rostock are still in the shadow of their larger counterparts when it comes to quality of life, but are catching up - mainly thanks to investment in urban development and local transport.

Leipzig's good connections via freeways, the Berlin-Munich ICE line and Leipzig/Halle airport give the city a further advantage in comparison.

Real estate market: Leipzig as a hotspot

Leipzig is also one of the most attractive locations in eastern Germany for real estate investors. Although prices have been rising for years, they are still below the level of major western German cities. At the same time, demand is high for both residential and commercial real estate.

Schwarzat Capital GmbH is heavily involved in Leipzig, particularly in the area of modern residential concepts and urban office space. Sven Schwarzat explains: "Leipzig offers the ideal mix of growth in demand, rental potential and development prospects. Other eastern German cities are often less dynamic in their development or are already exhausted."

Although Dresden is also popular as a real estate location, prices here are higher in some cases, while economic growth is flatter. Erfurt, Magdeburg and Rostock offer interesting niches, but do not reach the level of Leipzig in terms of return on investment and market depth.

Science and innovation: Leipzig is digitalizing

Another of Leipzig's locational advantages lies in its science and research landscape. Leipzig University is one of the oldest in Germany, complemented by institutes such as the Helmholtz Center for Environmental Research and the Max Planck Institute for Mathematics in the Sciences. There are also innovative projects in the fields of artificial intelligence, energy and medicine.

Dresden is undoubtedly a scientific hotspot - particularly thanks to the TU Dresden and its close links with high-tech industries. But Leipzig stands out for its interdisciplinarity and strong links between research and business.

In cities such as Erfurt, Magdeburg or Rostock, the research landscape is significantly smaller and less internationally oriented, which can have a long-term impact on innovative strength.

Conclusion: Leipzig sets standards

The comparison clearly shows that Leipzig is a leader among the major East German cities - economically, demographically and culturally. The city manages to attract investors such as Schwarzat Capital GmbH, inspire young professionals and at the same time offer a high quality of life. Sven Schwarzat sums it up: "Leipzig combines all the factors that are crucial for sustainable development - and is therefore more than just an insider tip."

Of course, other cities in the east also have their strengths - Dresden in research, Erfurt in administration, Magdeburg with its industrial policy and Rostock as a maritime hub. But no other city is currently demonstrating as consistently how the future can be shaped in eastern Germany as Leipzig.

Leipzig is well on the way to establishing itself as a new metropolitan region in the heart of Germany - not as a replacement for Berlin, but as an independent center with a unique character and great potential for the coming decades.

For further information, please contact (also responsible for this press release):

Schwarzat Capital GmbH
Mr. Sven Schwarzat
Ernst-Thälmann-Straße 18
06686 Lützen
Germany

phone ..: 034444909876
web ..: http://www.schwarzat-capital.de
email : info@schwarzat-capital.de

You may use this press release - even in modified or abridged form - free of charge on your website with a source link to our homepage.

Schwarzat Capital GmbH
Ernst-Thälmann-Straße 18
06686 Lützen
Germany

https://www.schwarzat-capital.de

Herr Sven Schwarzat
034444909876

info@schwarzat-capital.de

About the author: Sven Schwarzat is Managing Director of Schwarzat Capital GmbH, based in Lützen. With this GmbH and also privately, he holds numerous properties in his portfolio, carries out construction projects and rents out his apartments. His focus is in and around Leipzig. His expertise and experience make him a reliable advisor for general questions on real estate and specifically on the Leipzig real estate market.

About Schwarzat Capital GmbH: Schwarzat Capital GmbH, based in Lützen, is a leading company in the field of real estate investment and development. The company specializes in the acquisition, refurbishment and letting of residential properties in Leipzig.

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