The new report “Insight Dresden” from Comfort in cooperation with Cima Advice + Management provides current insights into the location of the city’s retail property market. The analysis shows that despite the challenging overall economic framework, the Dresden retail is on the right track.
Dresden scores with over 570,000 inhabitants and as a political, cultural and tourist center of Saxony with an attractive mix of population growth, strong science and technology location and a stable labor market. The “Silicon Saxony” technology region in particular underlines the city’s innovative strength. In addition, Dresden attracts millions of tourists every year, which also strengthens the importance of retail.
The retail center focuses on the inner city axis between the main train station, Prager Straße, Altmarkt and Neumarkt, supplemented by the large shopping centers Altmarkt-Galerie and Centrum Galerie. With a retail center of 109.8 and a purchasing power just below the national average, demand in inpatient trade is solid. The catchment area comprises around 1.3 million inhabitants from the city and region.
The rental market in Dresden shows a positive development: since 2021, area sales have increased significantly again, supported by the return of customers to inner cities and an increased expansion of retailers and catering concepts. While rents are stable in top locations, larger areas remain under pressure.
The investment market for trading properties also stabilized after a phase of reluctance in 2024. The purchase prices have dropped compared to earlier peak times, but several significant transactions were recently made in Dresden, including the “QF district at the Frauenkirche” on Neumarkt and the “Kugelhaus” on Wiener Platz.
