Leipzig is becoming less attractive for companies

According to a new analysis, Leipzig has lost popularity as a business location. Only 7 percent of companies now give the location the top rating of "very good" - compared to 15 percent in 2019. At the same time, the proportion of "good" ratings fell from 69% to 46%, according to a joint study by the Leipzig Chamber of Skilled Crafts and the Chamber of Industry and Commerce (IHK).

According to the study, the ratings for administrative processes, inner-city traffic and the level of energy prices, fees, charges and taxes in particular have deteriorated compared to 2019. Despite the points of criticism, Leipzig remains "one of the most attractive business locations in Germany" according to the analysis.

Quality of life a highlight, bureaucracy a problem

"Leipzig's cultural diversity, lively city center and high quality of life are valuable locational advantages for companies and skilled workers alike," said IHK President Kristian Kirpal. However, this attractiveness must be financed, and the funds for this are primarily generated by companies and their employees. Therefore, the costs for companies must be reduced, unnecessary bureaucracy cut and processing and approval times shortened.

OB: No urban development without business

Leipzig's Lord Mayor Burkhard Jung (SPD) emphasized: "We know how important a strong economy is. Not only because around a quarter of our income comes from trade tax." Without this income, spending on social welfare, culture, climate protection or business development would not be possible. This is another reason why the city takes the survey results "very seriously".

The analysis is based on a survey conducted by the Leipzig Chamber of Industry and Commerce and Chamber of Skilled Crafts, in which a total of 291 member companies from all sectors and of all sizes were surveyed. The survey took place from November 2024 to January 2025. The companies were asked to rate both the importance of and their satisfaction with various location factors.