Hamburg, a Pearl
Hamburg, a Pearl
Hamburg is one of Germany's top residential locations with consistently good general conditions and prospects. Rising population figures lead to a growing demand for housing. More is being built than in most other A-cities - and sold well. A short portrait.
The Hanseatic City of Hamburg is the second largest city in the Federal Republic of Germany with just under 1.9 million inhabitants. In addition to the maritime economy and logistics, Hamburg is also an important location for the aviation and food industries. Hamburg is the center of the Hamburg metropolitan region with a total of almost 5.4 million inhabitants, which in the east extends far into the state of Mecklenburg-Western Pomerania.
Average residential rents (new construction) are in the middle of the range for A-cities and are exceeded by Munich, Frankfurt (Main) and Stuttgart. The rent increase over the last five years amounts to around 10 % overall. By contrast, the purchase prices for newly built condominiums have increased by a total of around 37 % over the same period and, in terms of the absolute price per square meter, are also in the midfield of the A-cities. The Elbe suburbs, the forest villages and districts near the Alster such as Rotherbaum, Harvestehude, Eppendorf, Winterhude and Uhlenhorst traditionally form the most sought-after residential locations within Hamburg.
The recently published ETW Study Hamburg 2020 takes a closer look at newly built condominiums in the central districts of the city. 1,240 newly built condominiums with around 116,000 square meters of living space were examined. The good marketing successes in Hamburg show that demand for condominiums remains high. This is why the increase in purchase prices per square meter of living space in recent years will continue in this area in 2020: the average offer price of the projects examined is around 9,100 euros/sqm, with large apartments achieving the highest square meter prices. The range is wide, from 5,400 Euro/sqm in Eilbek to 22,600 Euro/sqm in Rotherbaum on the Outer Alster. However, only four projects under 6,000 Euro/sqm are located this year.
The ETW Hamburg study also points to a trend: the average project size is growing significantly to 38 apartments by now (2017: 29). The market is characterized by fewer but larger projects compared to the previous study in 2017.
Residential construction activity in Hamburg is at a high level in the medium term: since 2013, an average of around 7,200 completed new apartments (in residential buildings) have been built each year. With more than 9,700 completed apartments, a new completion peak was reached in 2018. In 2019, over 9,000 new apartments were still being built. About 85% of the apartments were built in apartment buildings with at least three residential units. Looking at all seven class A cities, only in Munich were more apartments completed in 2018 in relation to the market size.
Note: You can purchase the study Newly Constructed Condominiums Hamburg 2020 including project data sheets and 5-year comparison (only in German language). You will find all the market data mentioned and many more detailed information in our RIWIS database.
Contact person: Oliver Strege, Project Manager Residential, bulwiengesa Hamburg, strege [at] bulwiengesa.de