Residential property on the Elbe with potential: returns of up to 6% possible

Key facts

Purchase price & costs

About this investment property

The property on offer comprises a plot of approx. 360 m² with a multi-family house built in 1900 using solid construction. The property is centrally located in the Buckau district of Magdeburg and has a full basement.

As part of a comprehensive refurbishment in 1993/94, all major building systems were renewed. Heating is provided by a reliable gas central heating system installed in 2017. Double-glazed wooden windows have been installed. According to the information available, the energy rating falls within efficiency classes C to D.

The property has a lettable residential area of 534.30 m², distributed across twelve residential units. All twelve apartments are currently fully let. The layouts are functional and reflect the configuration of a classic existing property with solid residential use: there are seven 1-room units (approx. 58%) and five 2-room units. The standard of fit-out ranges from basic to mid-range, in keeping with the age of the building. Two residential units (the units on the left on the ground floor and on the right on the 3rd upper floor) have already been fully refurbished to a modern standard.

Current rents for the units let on standard terms range from €5.60/m² to €8.00/m². Across all areas, the current actual rent level averages approx. €6.85/m². One unit on the 1st upper floor is occupied without an ongoing tenancy agreement, as a beneficiary (over 60) lives there under a lifelong right of residence.

Compared with current market levels in the district—which, according to analyses, range from €7.12/m² to €14.49/m² for existing apartments—there is substantial potential for rent increases upon re-letting and through scheduled adjustments to existing tenancies. The units already modernised provide a model for the calculated approach.

Sustainable development potential:
• Gradual modernisation upon tenant turnover: Drawing on the successful refurbishments already carried out in the property, the fit-out of the remaining units can be specifically brought up to modern market standards when they are re-let under standard terms. Options include installing hard-wearing wood-look vinyl flooring and modernising the bathrooms.
• Optimisation of building services: The existing gas central heating system provides an excellent and relatively new basis for future minor energy-efficiency improvements (such as the hydraulic balancing) to reduce consumption further.
•Appreciation of the common property: Minor cosmetic measures in the stairwell or courtyard (e.g. organized waste or bicycle storage areas) ensure long-term rental potential to Buckau’s reliable tenant base.

Even by promptly implementing legally compliant rent adjustments across the existing portfolio, the yield can be increased to 5,59 % in the short term. However, the property’s sustainable potential extends significantly further: Through gradual modernization when tenants change under normal circumstances, the rent level in the building will progressively approach the current market average of just under 8,00 €/m². Over the medium-term development period, this value-enhancing strategy enables a target yield of well over 6,00 %, making the property an exceptionally future-proof investment in the up-and-coming Buckau district.


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