A new development in Hamburg offers numerous advantages
Optimal design, low costs, and high security – why new builds are becoming increasingly attractive.
News from the residential real estate market
Modern, efficient living with a newly constructed property in northeastern Hamburg.
Building a new home, apartments, or residential complexes in Hamburg comes with numerous advantages that seem to have been increasingly forgotten. New construction appears to have fallen into disrepute. This is evident in the significantly decreased numbers of building permits for residential properties nationwide and in Hamburg, where permits declined by around 40 percent by August of this year. Additionally, private builders’ demand for building plots has also slowed. The reasons for this decline, visible through the decreasing number of construction sites, are tangible: rapidly rising interest rates on construction loans and sharply increasing construction costs triggered by general inflation, high energy costs, and still frequently disrupted supply chains.
The situation has calmed down somewhat.
Interest rates and prices have dropped, reaching levels that make calculations easier for construction companies, builders, and buyers. For average prices of 3-4 room new apartments with approximately 100 m² of living space in northeastern Hamburg at around €7,500/m², interest rates that have decreased by about one percentage point – for ten-year fixed-rate mortgages – translate to a monthly household relief of €500, reducing pure interest payments to €1,500. As a result, the advantages of new builds in Hamburg are coming back into focus.
Living in the heart of Hamburg-Poppenbüttel
Situated in the north-east of Hamburg, these first-time-occupancy properties surpass the highest demands for a modern living experience
The key advantages of new builds
Customized floor plan design
Developers typically allow for floor plan adjustments in newly constructed homes or apartments up to a certain construction stage without additional costs. Options such as combining rooms, dividing spaces, separating the kitchen from the living area, creating an open living/dining area, adding a study, or altering storage space can often be customized to meet individual needs. Additionally, there is usually a broader selection of materials and fixtures for floors, walls, doors, and bathroom fittings.
Lower energy and maintenance costs
New builds adhering to modern energy standards with a high proportion of renewable energy not only consume significantly less CO² but also reduce electricity and heating bills. Savings compared to older buildings can be as much as five to six times the cost. Furthermore, new builds in Hamburg are generally much more maintenance-friendly than older properties due to more durable materials and installations.
Simpler financing
Banks and savings institutions are quicker and more straightforward in financing newly constructed properties, as their energy efficiency and low maintenance requirements provide a more secure long-term basis for financial calculations. Unlike older properties, they are less likely to incur high energy and maintenance costs during the loan term.
Warranties
Developers and contractors typically offer warranties of up to five years on construction, functionality, and materials. This reduces the need for significant reserves for maintenance and repairs in the first few years. Even mid-term, components like roofs, windows, plumbing, heating, ventilation, and electrical systems last longer than those in older properties.
Safety as standard
Newly constructed homes and apartments can easily include alarm systems, burglar-proof windows, and doors, and typically feature much higher safety standards than most older houses, villas and apartments.
High comfort and sustainability
New builds in Hamburg generally offer higher comfort levels, complying with updated building regulations that require wider paths, more storage spaces, bike rooms, stroller areas, and child-friendly garden designs. Many also feature underground parking, which is increasingly necessary due to reduced street parking. Additionally, new properties are often at least accessible or fully barrier-free, catering to older residents or those needing care. Lastly, most new builds – especially single-family homes – come with outdoor spaces such as balconies, terraces, or gardens.
Better rentability
New builds intended as investment properties are easier to rent out at market-appropriate rates. They are not subject to rent controls and tend to attract long-term tenants due to their superior comfort, higher standards, and significantly lower energy consumption.
