Rising Risks for New Construction in Saxony
The article, published by Die Sachsen News, reports on the growing financial challenges faced by housing cooperatives in Saxony. It highlights that new building projects are becoming increasingly risky due to rising construction costs, putting pressure on cooperatives that manage roughly one‑fifth of the state’s rental housing stock.
Declining Annual New‑Build Volumes
In the previous year, 282 new apartments were completed, a sharp drop from over 500 a decade ago. Forecasts for the current year predict only 110 new units, far below the cooperatives’ preferred target of 300‑500 units annually, a level they consider necessary for portfolio growth.
Escalating Construction Expenses
Cooperatives face construction price ranges of €15‑20 per square metre, with total building costs now between €3,500 and €5,000 per square metre. These heightened expenses are identified as a primary factor limiting new‑build capacity and influencing the sector’s overall financial stability.
Vacancy Rates and Regional Disparities
Overall vacancy is expected to rise slightly to 8.5 % in 2026 from 8.3 % in 2025. However, large regional differences persist: major cities such as Dresden and Leipzig reported vacancies below 3 % in 2024, while rural districts like Zwickau, Erzgebirgskreis and Meißen showed rates of 16.4 %, 14.6 % and 14.1 % respectively. Approximately one in eight cooperatives now experiences vacancy levels of at least 20 %, with more than 30,000 cooperative apartments currently empty.
Rental Prices and Debt Situation
The average cold rent for cooperative apartments was €5.62 per square metre in 2025, up from €5.42 in 2024, with an anticipated increase of 2‑3.5 % for the current year. Rental arrears remain modest, amounting to about €9 million—0.6 % of total revenues—indicating disciplined tenant behaviour.
Cost‑Saving Measures and Future Outlook
Cooperatives advocate for “simple building” standards, proposing reduced specifications such as omitting balcony sound insulation and limiting the number of sockets per room. They estimate potential savings of up to €600 per square metre through such measures. The sector also monitors the federal “Bauturbo” initiative, viewing it as a nascent but promising stimulus for affordable construction.
Scale of Cooperative Housing in Saxony
Saxon housing cooperatives now manage roughly 294,000 apartments, representing 21.4 % of the state’s total rental housing stock. Their focus remains on maintaining economic stability while avoiding social hardship for tenants, emphasising cost control over expansion in the current environment.