Investment Real Estate in Saxony-Anhalt: Cities, Figures, and Rules 2026

Kevin Celentano · 2026-10-13

You have seen that an apartment in Magdeburg often costs less than a mid-range car in Munich, and you wonder if this is an opportunity. The figures are indeed striking: used condominiums in Magdeburg changed hands in 2024 at a median of €1,692/m². Mathematically, this results in high gross rental yields.

The other side is just as much a part of it. Saxony-Anhalt has the highest vacancy rate and the lowest average rent of all federal states, and the population is expected to shrink by almost 12% by 2040. This page shows both sides with official figures and explains why Magdeburg and Halle stand differently from the rest of the country.

01Saxony-Anhalt in figures

The most important state data in a table, each row with source and date.

64% of empty apartments had already been empty for a year or longer. This is not a normal tenant change. It shows that in many places there are more apartments than households that need them. For landlords, this is the most important figure on this page.

02Population: the state is shrinking, the cities are holding up better

At the end of 2025, 2,120,252 people lived in Saxony-Anhalt according to the municipality directory of the Federal Statistical Office, 15,345 fewer than a year earlier. The 16th coordinated population forecast expects around 1.88 million inhabitants in its medium variant by 2040, 11.9% fewer than in 2024. Even with high immigration, it would be 10% fewer. This is one of the sharpest declines of all states.

The Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) shows in its spatial planning forecast until 2045 how unevenly this decline is distributed. The district of Mansfeld-Südharz has the strongest expected decline of all districts in Germany at minus 24.2%, and even minus 29.8% among 20- to 66-year-olds. In the Altmarkkreis Salzwedel, the number of under-20-year-olds is expected to fall by 20%.

In terms of vacancy, the two large cities are more favourable than the state. On the census reference date 15.05.2022, 6.7% of apartments were vacant in Magdeburg, 7.5% in Saalekreis, and 7.7% in Halle. The highest values were in Dessau-Roßlau at 12.5%, in Burgenlandkreis at 10.8%, and in Salzlandkreis at 10.6%. At the municipality level, the range reached from 3.4% in Ahlsdorf and Möser to 20.8% in Völpke, according to the State Statistical Office.

03The most important cities for buy-to-let investors in Saxony-Anhalt

The table shows the state's eight largest cities. Vacancy and rent are taken uniformly from the 2022 Census. The rent is the average of all existing tenancy agreements in May 2022, not a today's asking price.

Inhabitants: Municipality Directory of the Federal Statistical Office, 31.12.2025.

Purchase prices from the Expert Committee of Saxony-Anhalt are available for Magdeburg. Used condominiums cost a median of €1,692/m² in 2024 from 579 sales, new-build apartments €4,225/m², although from only 17 sales. For Halle and the smaller cities, we supplement the values with the city pages.

Magdeburg and Halle are the two markets with the broadest demand: universities, administration, larger employers. Their vacancy rate is above the national average, but significantly below that of many medium-sized cities. There, every ninth to seventh apartment was empty in 2022. The census rent differs between cities by only around 70 cents. The decisive factor is therefore vacancy, not rent.

04Rules for landlords in Saxony-Anhalt

Saxony-Anhalt has not issued any of the state regulations that tighten tenancy law in tight markets. As a landlord, you have more leeway here than in most major West German cities.

Magdeburg has had a new qualified rent index since 31.01.2026, which is valid until 30.01.2028. It is the basis for rent increases in current contracts. Anyone buying a rented apartment should compare the current rent with the rent index. If it is far below, there is room for increase; if it is above, the rent could drop when tenants change.

05Purchase costs in Saxony-Anhalt

The land transfer tax in Saxony-Anhalt is 5.0%, unchanged since March 2012. Details can be found on the page Land transfer tax in Saxony-Anhalt.

Smaller purchase prices are typical in Saxony-Anhalt. A used 60 m² apartment at the Magdeburg median of €1,692/m² costs around €101,500, the land transfer tax on this around €5,100. Because notary and land registry have minimum fees, their share is higher for small purchase prices. How the costs are composed is explained in the guide Notary costs for real estate purchases, your case is calculated by the purchase cost calculator.

06Opportunities and risks of a buy-to-let investment in Saxony-Anhalt

The labour market is weaker than in the country as a whole. In September 2026, the unemployment rate was 8.0%, compared with 6.4% nationwide. In Magdeburg it was 9.2%. For landlords, this means a higher risk of rent defaults, especially with tenants with uncertain incomes.

The low purchase prices are the real opportunity. At €1,692/m² and a rent in the range of the rent index, the result is mathematically a significantly higher gross rental yield than in large West German cities. However, this yield stands against vacancy, maintenance and management. Half a year without a tenant or a special levy for the roof can consume a whole year's advantage.

In addition, there are the risks of every rented apartment: a higher interest rate for follow-up financing, special levies in older buildings, a tenant change that costs time and money. In shrinking regions, there is another risk. If you want to sell the apartment later, there are fewer buyers there.

07Other locations

Cities in Saxony-Anhalt: Halberstadt · Halle (Saale) · Magdeburg

Neighbouring states: Lower Saxony · Brandenburg · Saxony · Thuringia

All locations in comparison: Where is a buy-to-let property worth it? Cities compared 2026 · Which federal state is suitable? All 16 in comparison

08Further reading

• Condominium as a buy-to-let investment: pros and cons
• Taxing rental income
• Notary costs for real estate purchases
• Rental yield calculator
• Purchase cost calculator
• Land transfer tax in Saxony-Anhalt

09Sources

All sources accessed on 13.10.2026.

• Federal Statistical Office, Municipality Directory, municipalities in Germany by area, population and postcode on 31.12.2025 and on 31.12.2024
• Federal Statistical Office, 16th coordinated population forecast, federal states, Statistical Report (11.12.2025), Table 12421-b05
• Statistical Offices of the Federation and the States, Census 2022, Regional Table Buildings and Apartments (reference date 15.05.2022)
• State Statistical Office Saxony-Anhalt, Census 2022: 8.9% vacancy in Saxony-Anhalt, September 2024
• Federal Employment Agency, Monthly Report on the Labour and Apprenticeship Market, September 2026, Figure 1.14; Unemployment rate Magdeburg see city page
• Expert Committee for Property Values Saxony-Anhalt, Property Market Information (Purchases 2024): Evaluation see Buy-to-let properties in Magdeburg
• German Notary Institute, Overview of conversion ordinances according to § 250 BauGB, status 20.01.2026
• BBSR, Spatial Planning Forecast 2045: Population Forecast, BBSR-Analysen KOMPAKT 04/2024
• § 556d BGB, § 558 BGB, § 577a BGB, § 5 WiStG, § 250 BauGB
• Shares, comparisons and purchase costs: own calculation, as of 13.10.2026.

Note: This page is general information and not investment, tax or legal advice. All figures are taken from the sources mentioned or are calculation examples with disclosed assumptions, as of 13.10.2026. Past developments and forecasts are not a reliable indication of future results.