With its famous seaport, Hamburg is one of Germany’s most important economic centres. Its ever-growing population, overwhelmingly as a result of immigration to the city, currently stands at about 1.8 million. The 6,000 apartments newly built in 2014 will not completely satisfy the growing demand for residential accommodation. This development, coupled with the persistent low-interest environment, means that prices are continuing to rise.
Next to the areas on the banks of the Elbe, Blankenese, Nienstedten and Othmarschen, and the areas around the Außenalster and the HafenCity, the Alstertal and the Walddörfer are some of the most expensive areas in Hamburg. There is high demand for residential properties of all sizes in the trendy areas of Ottensen, Eimsbüttel and St. Georg. The northern and eastern areas of the city such as Lokstedt, Niendorf, Langenhorn and Bergedorf, or Rahlstedt and the surrounding area are increasingly sought after thanks to the comparatively inexpensive properties on offer. The south of Hamburg is also becoming increasingly popular due to its proximity to the city centre. Extensive plans for development and construction projects planning to demolish existing structures and fill in gaps between buildings in “Mitte Altona” offer potential for the development of residential properties in central areas. The increasing construction in Hansestadt and the high demand are reflected in the growth of transaction numbers in 2014. The number of transactions concerning residential apartments rose to 6,730 with a volume of 1.989 billion euros. The average purchase price of an apartment rose to 295,000 euros, 10% higher than in 2013. Buyers paid an average of 443,500 euros for a house in 2014 (+8% compared to last year). With a transaction volume of 1.406 billion euros in the housing sector, Hamburg achieved the highest turnover of all German cities.
The range of prices in the housing sector is growing smaller. The entry-level prices for detached houses have risen sharply in all locations, while only the good locations showed a slight rise maximum. With prices of over 13 million euros for mansions in preferred locations with a view of the water, the premium sector is separated from the traditional market. Apartments showed a rise in higher-price properties due to new development in good and prime locations. Average locations show small rises in the rental sector.
Engel & Völkers predicts a further dynamic development of the Hamburg residential property market for 2016. With over 11,000 construction permits granted in 2014, increasing numbers of new-build developments contribute to the trend which sees even basic and average locations growing in attractiveness. The expansion of HafenCity with the Billebogen will see positive development in the areas closest to the Elbe in the East of the city. There will also be a slight rise in prices in the good and average locations in the housing sector.