1. What are the current developments and trends on the Hamburg real estate market?

2. How high are the rents for apartments in Hamburg?

3. How high are the purchase prices for condominiums in Hamburg?

4. How high are the purchase prices for single and multi-family houses in Hamburg?

5. Wie hoch sind die Immobilienpreise in Hamburg nach Stadtteilen?

6. What is the prognosis for the development of real estate prices in Hamburg?

7. Contact person - that's what your local experts say

As in most German metropolises, there is also continuous population growth in Hamburg. Almost 1.9 million people currently live in the Hanseatic city, which corresponds to an increase of +5.3 percent compared to 2014. The demand for living space is therefore unbroken. At the same time, the newly built apartments cannot fully meet the growing demand.

This development, together with the persistently low interest rate environment, is leading to continuous price increases. Residential properties in the Hamburg area are therefore increasingly attractive alternatives for property buyers. Another indication of the continuing demand for living space is the low vacancy rate. Just 0.5 percent of the apartment buildings in Hamburg are currently uninhabited.

The enormous influx of residents that the Hanseatic city is receiving and the associated demand for housing is reflected in the rental prices. The average asking rents in Hamburg have been on a steady upswing for years, both for existing properties and for new buildings.

Tenants of existing properties in Hamburg paid an average of EUR 12.09 per square meter of living space in 2020. This corresponds to a price increase of +2.37 percent compared to the previous year. If you look at the asking rents over the past five years, prices per square meter even rose by 11.84 percent.

In contrast, rents for new buildings have fallen slightly. In 2020, the average rent here was 14.93 euros per square meter. The rent fell slightly in 2020 by -0.13 percent compared to the previous year. Overall, however, rising prices can also be observed here: In the past five years, the increase in asking rents for new buildings has been +11.75 percent.

The asking prices for condominiums in Hamburg continued to rise in 2020. In 2020, buyers paid an average of 6,993 euros per square meter for a new building, which corresponds to an increase of +18.95 percent.

The positive trend is also unbroken for existing properties. Existing condominiums achieved an average square meter price of 5,424 euros last year. The prices here were 8.63 percent higher than in 2019.

Hamburg's housing market is also characterized by consistently high prices. In 2020, real estate buyers paid an average price of 787,974 euros for a single-family home. This corresponds to an increase of +9.3 percent compared to the first half of 2019.

In addition to the type and condition of a property, property prices in Hamburg also depend on its location. In general, real estate north of the Elbe is more in demand than houses and condominiums in the south of the city. Properties close to the center and those on the north bank of the Elbe achieve the highest price levels.

The districts in a very good location traditionally include Blankenese, Nienstedten, Othmarschen and the area around the Alster. In addition, HafenCity, Marienthal and parts of Volksdorf Wellingsbüttel, Poppenbüttel, Bergedorf and Wohlsdorf-Ohlstedt are among the most sought-after real estate locations.

One- and two-family houses in this location achieve prices between 1.2 and 15 million euros. The local condominiums are also characterized by a very high price level. The square meter prices here are between 6,000 euros and 25,000 euros. Apartment buildings on the Alster and Elbe are being sold for 4,500 to 6,800 euros per square meter.

City districts in a good location include Eimsbüttel, Lokstedt, Winterhude, St. Georg and the old town. Heimfeld, to the south, is also in a good location. The price range in these parts of the city is, however, lower than in the areas that have a very good location.

Single and two-family houses in good locations cost between 620,000 euros and 4 million euros. Local condominiums fetch prices between 3,800 euros and 11,000 euros per square meter. Apartment buildings in good locations reach prices per square meter between 3,200 and 4,800 euros.

City districts in the middle are to be found with Barmbek-Nord and -Süd, Rahlstedt and Wandsbek mainly north of the Elbe. These areas have house prices between 320,000 euros and 1.25 million euros.

In the case of condominiums, buyers can expect a price range from 2,200 euros to 7,000 euros. Apartment buildings and apartment buildings reach prices per square meter of 2,400 to 3,500 euros.

The districts in a simple location include Horn, Billstedt, Veddel and most of the residential areas south of the Elbe. These quarters compensate for the less desirable location with a low investment hurdle: with a price range of 340,000 euros to 1.125 million euros, the local house prices are comparatively moderate.

The same applies to condominiums: Here, the square meter prices are between 2,500 euros and 7,700 euros. Even for apartment buildings, real estate prices in simple locations start at 1,900 and go up to 2,600.

In all locations, Ilkay Koenec Hamburg expects a further price increase in the next year. The only exception could be condominiums in the middle location, for which price stabilization is forecast. Philip Bonhoeffer and Niclas Gyllensvärd from the local shop sum up: “The Covid 19 crisis shows once again how stable and solid the real estate market around the Alster is. Demand and prices remain at a high level and are even picking up slightly. So the wisdom “location, location, location” is confirmed again. You can get even more in-depth insights into the residential property market in the 64 most important cities in Germany in our current residential property market report Germany 2020/2021 or in a personal conversation with Germany's fairest real estate agent. We are looking forward to your contact.

Bente Tralau and Oliver D. Ihrt from Ilkay Koenec Commercial Hamburg rate the current development on the Hamburg apartment building market: “The real estate rally continues unabated in Hamburg - 2018 saw the highest transaction volume ever. And again, both square meter prices and factors have risen. In a ten-year comparison, the square meter sales prices have tripled - which makes Hamburg an attractive buyers 'and sellers' market. Long-term Hamburg portfolio holders are in some cases parting their holdings in order to realize the enormous increases. " Factors, developments, rents and real estate prices in Hamburg and 66 other German cities can be found in our current residential and commercial buildings market report 2020.