The real estate market is booming, prices are rising – and one square meter of lawn is to be auctioned off at a six-figure price in Leipzig, which is probably the highest square meter price in Germany.
A square meter of meadow for at least 175,000 euros
The parcel number 1646/28 is to be auctioned at the end of May with a minimum bid of 175,000 euros. It concerns a piece of lawn in Leipzig, which is referred to in the catalog as “part of a green area with lawn vegetation”. The special thing about the lawn is its size: it is only one square meter. According to ZEIT, this is probably the most expensive square meter price in Germany.
Interested parties cannot assess on site whether the investment is worthwhile, as the piece of lawn is enclosed and its property boundaries are not recognizable on site.
So why the high price?
The reason for the high price of at least 175,000 euros is mentioned in the catalog and is not as bizarre as one might have expected: an unrestricted right of use for 30 parking spaces in the residential area in the land register is tied to the corresponding square meters – the buyer receives these rights automatically and can therefore rent out the parking spaces.
The lawn with the associated parking spaces is located in the Gohlis-Nord district of Leipzig, or more precisely: in the condominium “Kaisergärten”. This is a residential area with Art Nouveau villas and great demand for parking spaces – this is why these are currently rented out at a price of 50 euros per parking space per month, which currently generates a total annual income of almost 12,000 euros.
Rental income, but no maintenance costs
The advertisement in the catalog of Sächsische Grundstücksauktionen AG also specifies that the forecasts for the monthly parking space prices in the residential area expect price increases in the next few years and that annual income of up to 18,000 euros could be generated.
This means that the sales price of at least 175,000 euros with an annual income of 18,000 euros would be recovered within almost ten years. The buyer does not have to pay any maintenance costs because, according to the catalog, the property is shared. This is apparently also the reason why there is no house fee obligation.
What initially appears to be a bizarre offer turns out to be a possibly even very attractive option for the buyer.
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