For the first time since its reunification in 1990, more people are moving to former East Germany than are leaving it.
Since the Berlin wall came down and East Germany as a country disappeared, some 1.8 million people left the east in search of jobs and better housing in the west.
But the trend may now be reversing. In 2012 nearly 150,000 people moved to one of the five states that comprised East Germany.
The report, by the Berlin Institute for Population and Development, said it was the first year the former east experienced net migration.
The growth has been driven by the major cities of Leipzig, Dresden, Erfurt and Potsdam, aided by the injection of cash for restoring their architectural gems after inner city neglect during the communist era.
Leipzig in particular has developed a reputation as an artistic centre in recent years, taking over from Berlin as the country’s “coolest city”. It has become one of the fastest growing cities of Germany.
Increasing job prospects for graduates in the east has been another lure as has a cheaper cost of living.
The revitalised towns are also attracting many young people from the east Germany countryside. This in itself is a reversal of the earlier trend to move out of the crumbling cities for a healthier rural life.
With few young people left, rural communities are struggling to raise finances to fund infrastructure projects that could make them attractive once more to young families.
Older people too are starting to leave rural areas in favour of larger towns and cities to access healthcare.
The report recommends that taking in refugees could be an answer to this problem. Not only would this inject youth into aging populations but rural regions would also provide refugees with smoother integration than large anonymous cities, the report's authors argue.
