Investment Property in Dresden

Investment Real Estate in Dresden

Dresden property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Dresden .

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Search Map of Dresden Investment Real Estate

Dresden (, German: [ˈdʁeːsdn̩] (listen); Upper and Lower Sorbian: Drježdźany) is the capital city of the German state of Saxony and its second most populous city, after Leipzig. It is the 12th most populous city of Germany, the fourth largest by area (following Berlin, Hamburg and Cologne), and the third most populous city in the area of former East Germany, following Berlin and Leipzig. Dresden’s urban area comprises the towns of Freital, Pirna, Radebeul, Coswig and Heidenau and has around 790,000 inhabitants. The Dresden metropolitan area has approximately 1.34 million inhabitants.

Dresden is the second largest city on the River Elbe after Hamburg. Most of the city’s population lives in the Elbe Valley, but a large, albeit very sparsely populated area of the city east of the Elbe lies in the West Lusatian Hill Country and Uplands (the westernmost part of the Sudetes) and thus in Lusatia, while many boroughs west of the Elbe lie in the foreland of the Ore Mountains as well as in the valleys of the rivers rising there and flowing through Dresden, the longest of which are the Weißeritz and the Lockwitzbach. The name of the city as well as the names of most of its boroughs and rivers are of Slavic origin.

Dresden has a long history as the capital and royal residence for the Electors and Kings of Saxony, who for centuries furnished the city with cultural and artistic splendor, and was once by personal union the family seat of Polish monarchs. The city was known as the Jewel Box, because of its baroque and rococo city centre. The controversial American and British bombing of Dresden in World War II towards the end of the war killed approximately 25,000 people, many of whom were civilians, and destroyed the entire city centre. After the war, restoration work has helped to reconstruct parts of the historic inner city.

Since German reunification in 1990, Dresden has again become a cultural, educational and political centre of Germany. The Dresden University of Technology is one of the 10 largest universities in Germany and part of the German Universities Excellence Initiative. The economy of Dresden and its agglomeration is one of the most dynamic in Germany and ranks first in Saxony. It is dominated by high-tech branches, often called “Silicon Saxony”. According to the Hamburg Institute of International Economics (HWWI) and Berenberg Bank, in 2019, Dresden had the seventh best prospects for the future of all cities in Germany.

Dresden is one of the most visited cities in Germany with 4.7 million overnight stays per year. Its most prominent building is the Frauenkirche located at the Neumarkt. Built in the 18th century, the church was destroyed during World War II. The remaining ruins were left for 50 years as a war memorial, before being rebuilt between 1994 and 2005. Other famous landmarks include the Zwinger, the Semperoper and the Dresden Castle. Furthermore, the city is home to the renowned Dresden State Art Collections, originating from the collections of the Saxon electors in the 16th century. Dresden’s Striezelmarkt is one of the largest Christmas markets in Germany and is considered the first genuine Christmas market in the world. Nearby sights include the National Park of Saxon Switzerland, the Ore Mountains and the countryside around Elbe Valley and Moritzburg Castle.

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The financial stability of Dresden has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Dresden

Renting out your Dresden buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Dresden are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Dresden and be prepared to change your initial outlook.
Thoroughly research the Dresden location with a special emphasis on fringe areas outside the main Dresden metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Dresden.
Ensure that your target investment property in Dresden appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Dresden properties yourself is an easy option, but are these savings justifiable when you run into Dresden red tape? Physis Realty Dresden office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Dresden buy-to-rent sector.

With our expert guidance, investing in Dresden provides the secure knowledge that your money is working harder than it would in a local Dresden bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Dresden, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Dresden property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Dresden

Flipping property in Dresden

Flipping property is when we advise clients to buy a Dresden property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Dresden market has a time to react to the renovation.

The Flipping Strategy in Dresden

Investment property flipping in Dresden is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Dresden real estate investments are sometimes referred to by professionals as ‘distressed’ Dresden real estate.

What is distressed Dresden property:

Dresden property in need of renovation
Dresden real estate with a change of purpose and use
Oversold Dresden property
Bank repossessions in Dresden

Put simply, long term investors in Dresden purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Dresden investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Dresden property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Dresden use a minimum profit value of 22% when looking at potential Dresden projects. The reason for this is because there are lots that can go wrong in Dresden property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Dresden

For luxury property investors hoping to add a superb property in Dresden to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Dresden, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Dresden should be entrusted to only the highest-quality agency.

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