Engel & Völkers Licence Partner Malta Regional Market Center > Blog > Hamburg’s property market continues to gain momentum

Hamburg’s property market continues to gain momentum

Hamburg is one of the most popular residential locations in Germany, thanks to its good infrastructure, as well as the attractive opportunities the city has to offer in terms of employment, education and recreation. In 2019, the average asking price for detached properties rose to 747,240 euros (+10.9 percent). The market for freehold apartments also continues to witness positive growth. Apartments in the Hanseatic city are offered for sale for an average of 5,281 euros per square metre. “Strong buyer demand is leading to price rises across all market segments. In addition to premium locations along the River Elbe and on the Alster Lake, good and average locations will also profit from this trend in the long term,” says Kerstin Heyng, Team Leader for the Elbe suburbs at the Engel & Völkers Market Center Elbe. 

 Mriehel
- This modern apartment with views of the River Elbe is located in the HafenCity quarter and boasts premium amenities. It is currently on sale for 1.78 million euros. (Image source: Engel & Völkers Hamburg)

Market for detached homes: Excess demand ensuring peak sales 

In terms of the overall sum of sale prices paid for all real estate transactions in 2018, it is evident that Hamburg, at 1.8 billion euros, is the clear frontrunner for transaction volume ahead of other cities such as Berlin (1.3 billion euros) and Munich (1.3 billion euros). “Grand old mansions and brand-new contemporary homes with waterfront views are equally sought after in Hamburg. Prices for this calibre of property in the Elbe suburbs or next to the Alster Lake can reach up to 8 million euros,” Kerstin Heyng adds. Blankenese, Nienstedten, Harvestehude and Uhlenhorst are still among the most expensive and upmarket neighbourhoods. Good locations such as Eppendorf, Eimsbüttel and Winterhude are registering top prices of 4 million euros. 

Market for apartments: Potential for new construction not yet exhausted 

Freehold apartments in very good locations, such as in the HafenCity quarter, are commanding prices of up to 15,000 euros per square metre. Good locations such as Ottensen are registering prices per square metre of up to 7,500 euros. By contrast, apartments in average locations like St. Pauli and Sternschanze cost up to 6,500 euros per square metre. “A high excess in demand persists, due to the shrinking size of individual households and the increased need for housing in central areas of the city. Bearing in mind the limited availability of real estate and the strong upward trend in property prices, we anticipate that prices will continue rising moderately in the future,” says Jan Witte, Team Leader for Hamburg City at the Engel & Völkers Market Center Elbe. Compared with all other locations in Germany, Hamburg is best able to meet the high level of demand with new construction activity. However, new residential developments realised to date still cannot meet the sheer number of new homes required. Experts at Engel & Völkers are currently reporting a deficit around 10,900 apartments. This is based on a scenario whereby construction activity continues at the current rate – resulting in just 52,000 new apartments being built by 2025, as opposed to the 62,900 completed new homes that would be necessary. 

Outlook: Basic and average locations offer favourably priced entry options 

Demand for residential property for personal use and as a capital investment will continue to rise throughout Hamburg in 2020. The high price bracket in prime locations means that districts such as Lokstedt, Eilbek and Barmbek Süd, which until just a few years ago were considered to be rather unremarkable locations, will increasingly come into the focus of prospective buyers. Real estate in the greater Hamburg area also offers attractive investment opportunities, as the potential for appreciation in property prices here has not yet been exhausted. 

Other trends relating to purchase power and property prices in German cities can be found (in German) in the “Engel & Völkers Market Report for Residential Property in Germany 2019/2020”. 

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Real Estate for Sale and To Let  with Engel & Völkers



Engel & Völkers Sara Grech is the luxury real estate agent that specialises in exclusive properties for sale and to let in Malta. With more than 30 years’ experience, we are one of Malta’s most successful real estate agencies


Located in the heart of the Mediterranean Sea, Malta is a thriving cultural hub that has long been a popular destination amongst expatriates and tourists alike. Partnered with the real estate agency Engel & Völkers, finding a property for sale or rent in Malta is a breeze, and in no time at all, you'll have a spacious apartment with a view or a villa with numerous bedrooms to call your own.


Living and working in Malta


Home to more than 450,000 inhabitants, Malta is the smallest country to join the European Union in 2004. In 2008, it became part of the Eurozone. Though Malta is well-known as a popular tourist destination with plenty of recreational areas and historical monuments including nine UNESCO world heritage sites, it is not known for its luxury properties and real estate for sale and rent! Besides having first-class accommodation, Malta is home to numerous companies and industries ranging from banking and financing to construction, retail, and i-gaming. Working in Malta requires the proper permits, and those seeking employment are encouraged to find a suitable job before moving into their purchased or rented property.


A new residency scheme was launched in June 2013 which allows people to buy a high-value property and pay taxes in Malta to benefit from the residence permit. Under the new Global Residence Programme, the value of immovable property bought in Malta by foreigners has a minimum threshold of €275,000. However, when the property is in the South of Malta or on the sister island of Gozo, the minimum value is reduced to €220,000. This new scheme also allows persons eligible if they wished to rent a property and this has been lowered to €9,600 in Malta and €8750 in Gozo or the South of Malta. The minimum tax to be paid under this scheme is a minimum of €15,000 on income derived in Malta, further income arising in Malta shall be taxed at a flat rate of 35%.


Real estate and property for sale and rent in Malta


Malta has several Special Designated Areas that offer a wide variety of properties to buy or rent! Whether you are looking for a new luxury apartment with views of the Portomaso marina or an expansive villa situated in Santa Maria Estate, our team will help you find a property for rent or sale that suits your needs. From apartments with a view to villas with several, we have it all.


After you've purchased property


For such a small island, Malta is packed with amazing things to see and do. From visiting historic sites to relaxing on beautiful beaches. Visitors can take their pick of activities which will suit any mood or taste.


A selection below are the top destinations that any person should see when coming to Malta. These include Valletta; Mdina; Paceville; Blue Lagoon (Comino Island) and Gozo


Valletta recently voted the European Capital for Culture for 2018 is also a UNESCO World Heritage Site. Valletta is the hub of tourism in Malta and for good reason. It is full of historical significance, with the likes of St John’s Cathedral, forts, and museums and much more squeezed into a tiny area. As far as beautiful towns go with plenty to see, Valletta is up there with the best.


Mdina is known as the jewel in the crown of Malta and it is a fair assessment. The walled city is full of tiny alleys which you can wind your way through, stumbling across beautiful churches and museums along the way. Now effectively part of the town of Rabat, this definitely shouldn’t be left off your Maltese itinerary.


Malta has a reputation for being a destination for the older generation, but Paceville puts lie to that. This is where the youngsters come to drink and party and you can rely on having a good evening out here. It’s not just loud music for teenagers either; there are plenty of civilized bars and restaurants if you don’t want to rave into the early hours.


A beautiful area of clear blue water which is fantastic for swimming and is the perfect place for a day out at the beach. Arguably the best place for swimming in the whole Mediterranean, the Blue Lagoon is located on the island of Comino.


Just a 30-minute ferry trip away from Malta, Gozo is a beautiful, rural island which gives you a glimpse into what Malta looked like a few decades ago. Sleepy villages, rugged coastline, and beautiful countryside all make this a fantastic place to visit. But one of the main draws is the diving off the coast. Malta has been named as one of the best places to scuba dive in the world, and Gozo is one of the best spots to do it.


No matter where your interests lie, Malta has you covered; with Engel & Völkers Sara Grech by your side, your home in this beautiful part of the world is also covered. Contact us today to find out more about our villas, apartments and other properties for sale and rent!


For more information on Malta and our Real Estate Services please click on the following: 

Malta the Perfect Location l Exclusive Properties l Buying a Property in Malta and Gozo l Expenses when Buying a Property l Energy Performance Certificate l First Time Buyers l The Malta Individual Investors Programme l Buy to Let l Special Designated Areas