Investment Property in Magdeburg: Figures, Locations and an Honest Calculation

Michael Pauker · 2026-10-13

You are looking for a tenanted flat as an investment, but in Munich or Hamburg the figures barely work with your budget any more. That quickly brings you to cities such as Magdeburg. An existing owner-occupied or buy-to-let flat here cost an average of 100.000 € in 2024. That is less than the property transfer tax on some flats in southern Germany.

But a low price alone does not make a good location. What matters is whether you will still be able to let your flat in ten or twenty years, and at what rent. To assess this, we look at population, vacancies, the labour market and the purchase prices actually paid.

Many investors know Magdeburg mainly from the headlines about the planned Intel chip factory. That has been cancelled. Here we explain what this means for the city, and the arguments for and against Magdeburg without Intel.

01Magdeburg in figures

The following table sets out the key data for property investors. Every figure has a source and a reference date. Where no reliable figure is available, we have omitted the row.

Two things stand out immediately. Resale purchase prices are well below the national average. And both vacancies and unemployment are higher than in most major western German cities. The two are connected, and both belong in your calculations.

02Population and demand

Magdeburg is the largest city in Saxony-Anhalt. At the end of 2025, it had 244.494 residents, compared with 235.723 ten years earlier. On paper, that is an increase of 3,7 %. The comparison is not entirely straightforward. The jump from 2021 to 2022 partly reflects the census correction and the arrival of refugees from Ukraine. From 2024 to 2025, the city grew by just 165 residents.

The population of Saxony-Anhalt as a whole, by contrast, is shrinking significantly. At the end of 2025, the state had 2,12 million residents, 15.345 fewer than a year earlier. The state's 8th Regionalised Population Forecast projects a decline of 23.131 people in Magdeburg by 2040 compared with 2022. That would mean almost 10 % fewer residents. A forecast is not destiny: the city has already outperformed earlier predictions. Nevertheless, you should not ignore it.

Many small households

For landlords, the number of households often matters more than the number of residents. In Magdeburg, 52,2 % of all households consisted of just one person in 2022. At the 2011 Census, the figure was 46,3 %. More single-person households mean greater demand for small flats at the same population level. Students, apprentices, people starting their careers and older people living alone are looking for precisely these homes.

Vacancies: the most important point to check

On the census reference date of 15.05.2022, 9.798 of Magdeburg's 145.934 homes were vacant. That is 6,7 %. The national rate was 4,3 %, compared with 8,9 % across Saxony-Anhalt. Around 4.520 of these homes had been empty for at least a year.

Demand therefore exists, but it is not equally strong everywhere. This is precisely why the choice of location and building matters more in Magdeburg than in a city with a housing shortage.

03Economy and labour market

Tenants need an income. In September 2026, 12.066 people in Magdeburg were registered unemployed, with a rate of 9,2 %. A year earlier, it was 9,1 %. That is significantly above the national average and something you should take seriously when selecting tenants.

At the same time, Magdeburg provides jobs for the wider region. 45.912 employees commute into the city for work, while 32.660 commute out. Overall, then, a good 13.000 more people come to work in Magdeburg than leave it. Most outbound commuters travel to the neighbouring district of Börde.

Public administration, healthcare and higher education

As a state capital, Magdeburg has many jobs in state administration and public authorities. University Medicine Magdeburg reports 6.791 employees. In the winter semester 2024/2025, Otto von Guericke University had 12.606 enrolled students, while Magdeburg-Stendal University of Applied Sciences had 5.177, of whom 3.684 were based in Magdeburg. Together, that amounts to a good 16.000 students in the city, providing reliable demand for small flats as long as student numbers hold up.

What happened to Intel

In March 2022, Intel announced a chip factory on the outskirts of the city, with investment of around 30 billion € and an initial plan for 3.000 jobs. In September 2024, the company postponed the project; in July 2025, it cancelled it definitively. The 9,9 billion € in subsidies pledged by the federal government consequently became moot. Part of the site is temporarily returning to agricultural use. In summer 2025, memory-chip manufacturer FMC announced plans to build a factory on a smaller part of the site. Job numbers and the timetable were still undecided at that point.

04Rents, purchase prices and rental yields

For purchase prices, we use data from the Property Valuation Committee for Saxony-Anhalt. It analyses all notarised purchase agreements. These are therefore prices actually paid, rather than asking prices on property portals. The latest published figures relate to 2024.

Resales account for almost three quarters of the market. In this segment, prices per square metre fell slightly by 0,7 % in 2024. The breakdown by construction year is interesting. Flats built between 1949 and 1990 cost an average of 2.048 € per m², older buildings up to 1948 just 1.645 €, and flats built from 1991 onwards around 1.700 €. In Magdeburg, condition evidently matters more than the year of construction.

What rents can deliver

Magdeburg has had a qualified rent index since 2024. The current version is valid from 31.01.2026 to 30.01.2028. Depending on flat size, base values range from around 5,00 to 7,90 € per m² net, excluding utilities and service charges, with additions and deductions for construction year, fittings and location. For new-builds from 2015 onwards, the rent index specifies an addition of 1,78 € per m². Existing rents averaged 5,75 € according to the 2022 Census. For new lettings, property portals show average asking rents of around 7,45 € (as at 01.10.2026).

Purchase price multiplier and gross rental yield: our calculation

The purchase price multiplier shows how many years of net rent excluding utilities and service charges you pay for a flat. The gross rental yield is its reciprocal: annual rent divided by purchase price. We use the median resale purchase price of 1.692 € per m² and three rent levels.

A gross rental yield of around 5 % is high for major German cities. But it is not a return in your pocket. Purchase costs, non-recoverable service charges, reserves, rent shortfalls and interest all have to come out of it. For new-build flats at 4.225 € per m², rent would need to be 17,60 € to achieve the same 5 %. New-builds in Magdeburg therefore tend to make financial sense through depreciation allowances and condition rather than rent. Work through your own case with the rental yield calculator.

05Districts at a glance

Magdeburg has 40 districts, ranging from densely built-up late-19th-century neighbourhoods to villages on the outskirts. No official body publishes reliable rents or purchase prices by district. The Property Valuation Committee distinguishes only between good, average and basic locations. The table therefore shows documented population figures and a qualitative assessment.

The population figures come from the city's population register (main residences). A note on locations: in 2024, existing resale flats of 45 m² or more cost 1.694 € per m² in good locations, 1.791 € in average locations and 1.446 € in basic locations. A good location in Magdeburg therefore does not automatically mean a higher price, because many unrenovated older properties are sold there. Assess each building individually.

06Rules for landlords in Magdeburg

As a landlord in Magdeburg, you have more flexibility than in many western German cities. The state of Saxony-Anhalt has not issued an ordinance introducing the rent brake (Mietpreisbremse). For a new letting, there is therefore no ceiling of 10 % above the local comparable rent. Only general tenancy law and the market set limits.

The cap on rent increases (Kappungsgrenze) has not been reduced either. During an ongoing tenancy, you may increase the rent by no more than 20 % within three years, and only up to the local comparable rent. In Magdeburg, you determine this using the qualified rent index (Mietspiegel). A prohibition on conversion to individual flat ownership under § 250 BauGB does not apply either, as Saxony-Anhalt has not designated any areas with a tight housing market.

Purchase costs in Saxony-Anhalt

Property transfer tax in Saxony-Anhalt is 5,0 % of the purchase price. Notary and land registry fees come on top, amounting to around 2 % for low purchase prices. Our guide to notary fees explains how these costs break down. If an estate agent is involved, you pay no more than half the commission when buying a flat. Without an agent, you should budget for a good 7 % in purchase costs in Magdeburg.

What will your purchase in Saxony-Anhalt cost? Enter the purchase price and select the federal state: the calculator shows property transfer tax, notary fees and land registry fees separately.

07Worked example: a tenanted flat in Magdeburg

Take Lena: employed, single, with a taxable income of 60.000 €. She buys an existing, tenanted two-room flat with 60 m² at the Property Valuation Committee's median price, rounded to 1.700 € per m². This gives a purchase price of 102.000 €. The bank finances the purchase price; Lena pays the purchase costs from her own funds. The name is fictional, and the figures are a worked example, not a forecast.

Lena therefore contributes around 117 € a month in the first year, or around 66 € after tax. At the same time, she repays 1.530 € of her loan. Her wealth therefore grows if the flat retains its value and remains let. In the year of purchase, there are also one-off land charge registration costs of around 690 €, which she can deduct immediately as income-related expenses.

What happens if things go less well? If the flat stands empty for three months, around 1.260 € in rent is lost. If the interest rate rises by one percentage point on refinancing, that costs around 850 € more a year on an outstanding loan of 85.000 €. Work out your own tax impact using our guide to tax on rental income.

For comparison: a new-build flat in Magdeburg

What would Lena's figures look like with a newly built flat? The Saxony-Anhalt Property Valuation Committee reports a median of 4.225 € per m² for new-build flats in Magdeburg in 2024, albeit based on just 17 sales. For 45 m² without a parking space, that gives a purchase price of 190.125 €. Lena pays property transfer tax (9.506 €), plus notary and land registry fees (3.438 €), from her own funds: 12.944 € in total. Interest and principal repayment rates remain as above. There is no official figure for new-build rents. We use 10,13 € per m², the value quoted by immoportal.com for flats built from 2015 onwards.

Compared with the existing flat, the first-year depreciation allowance is almost five times as high (8.079 € rather than 1.738 €), and maintenance costs in a new building are generally lower in the early years. In return, each square metre costs around two and a half times as much, and the gross rental yield falls to around 2,9 % rather than 4,9 %. Before tax, Lena contributes around 447 € a month here rather than 117 €; after tax, around 123 € rather than 66 €. And because declining-balance depreciation is calculated on a residual value that decreases each year, the tax saving falls in subsequent years. Anyone buying before completion also bears the risk of construction delays and receiving the first rent later. Saxony-Anhalt has no rent brake, so the rent for a new-build flat can be freely agreed, as with any new letting.

08Opportunities and risks in Magdeburg

Magdeburg is no guaranteed success, but neither is it a location to dismiss out of hand. The figures show both sides.

The case for Magdeburg: Purchase prices are low, and gross rental yields at realistic rents are around 5 %. The city is a state capital and a centre for higher education and healthcare, with a good 16.000 students and more inbound than outbound commuters. More than half of households consist of one person. As a landlord, you are subject to neither the rent brake nor a reduced cap on rent increases.

The case against: At 6,7 %, vacancies are significantly above the national average. Unemployment stands at 9,2 %. The state forecasts almost 10 % fewer residents by 2040. The Intel project has been cancelled, and resale prices per square metre fell slightly in 2024. In older buildings, you may face refurbishment costs, and you bear interest-rate risk when refinancing.

09Other locations

Other cities in Saxony-Anhalt: Saxony-Anhalt overview · Halberstadt · Halle (Saale)

All locations compared: Where is investment property worthwhile? Cities compared in 2026 · Which federal state is suitable? All 16 compared

10Further reading

• A flat as an investment: advantages and disadvantages
• Tax on rental income
• Notary fees when buying a home
• Rental yield calculator
• Purchase costs calculator
• Property transfer tax in Saxony-Anhalt

11Sources

All sources accessed on 13.10.2026.

• Saxony-Anhalt State Statistical Office, 2,12 million people lived in Saxony-Anhalt on 31.12.2025; population time series 2015–2025 via Wikipedia, Population development of Magdeburg
• State Capital of Magdeburg, Office for Statistics, Elections and Digitalisation, Magdeburg in Figures 2025 (districts, students, as at 31.12.2024)
• 8th Regionalised Population Forecast for Saxony-Anhalt (2022 baseline), Saxony-Anhalt Demography Portal
• 2022 Census (reference date 15.05.2022): homes, vacancies, owner-occupation rate, net rent excluding utilities and service charges in Magdeburg, analysis via wahlatlas.net; Destatis, 4,3 % of all homes are vacant; Magdeburger News, 26.08.2024 (Pestel Institute)
• Single-person households according to the 2022 Census, State Statistical Office, via dubisthalle.de
• Federal Employment Agency, Labour market in September 2026 in the State Capital of Magdeburg and Commuting in Magdeburg
• University Medicine Magdeburg, About us
• Property Valuation Committee for Saxony-Anhalt, Property Market Information 2025 (flat ownership dashboards, published 05.06.2025, years 2023 and 2024); LVermGeo, Magdeburg region
• State Capital of Magdeburg Rent Index 2026, information via mieterhoehung.de; asking rents via immoportal.com (as at 01.10.2026)
• Intel and FMC: nd-aktuell, 31.07.2025
• Rent brake and cap on rent increases: § 556d BGB, § 558 BGB, § 250 BauGB; state ordinances checked on 29.09.2026
• Saxony-Anhalt property transfer tax 5,0 %; notary and land registry fees under § 34 GNotKG; 2026 income tax rates under § 32a EStG; depreciation under § 7 Abs. 4 EStG
• immoportal.com, Magdeburg rent index, flats built from 2015 onwards, as at 01.10.2026 (market source, new-build comparison)
• New-build depreciation: § 7 Abs. 5a EStG (declining-balance), § 7b EStG (special depreciation)
• All worked examples, purchase price multipliers and gross rental yields: own calculations, as at 13.10.2026

Note: This page provides general information and does not constitute investment, tax or legal advice. All figures are illustrative calculations with disclosed assumptions, as at 13.10.2026. Past performance is not a reliable indicator of future results.