Top prices for luxury properties overlooking the water
Hamburg’s most exclusive residential addresses include the so-called “Elbe suburbs” such as Blankenese, Othmarschen and Nienstedten, in addition to neighbourhoods on the Outer Alster Lake like Harvestehude and Rotherbaum. In 2018, townhouses and mansions in these areas of the city sold for as much as 7.5 million euros. Asking prices for freehold apartments in very good locations such as Eppendorf, Winterhude and the HafenCity reached up to 20,000 euros per square metre during the same period.
Attractive investment opportunities on Hamburg’s real estate market
As a major centre for business, media and culture, Hamburg remains one of the most sought-after real estate locations in Germany. The market is dominated by national clients at present: approx. 90 percent of buyers are German citizens. Investors from the DACH region make up the second largest buyer group. “Despite the sharp rise in prices, properties in Hamburg’s prime locations are still an attractive investment for owner-occupiers and investors alike. The ongoing low rate of interest is making for ideal lending conditions for the acquisition of real estate,” said Jan Witte, Team Leader of Hamburg-City (“Hamburg City Centre”) at the Engel & Völkers Market Center Elbe.
Outlook: Good and average locations offer potential for development
According to Engel & Völkers, the continuing upward trend on the Hamburg real estate market will lead to price rises in all market segments in 2019. In addition to the existing premium locations, good and average locations will also benefit from strong buyer demand. “ The higher prices are making buyers more cautious however. The market has become more selective and the upward price curve in prime locations has levelled off as a result. We are seeing stronger rates of growth in those areas that directly neighbour the prime locations, where demand is set to rise in the future,” said Kerstin Heyng.
Other trends relating to purchase power and property prices in German cities can be found in the “Engel & Völkers Market Report on Residential Property in Germany 2018/2019”.