Significant rises in 2020 as prices in less expensive districts close gap

Hamburg and the environs: stock of residential properties 2019/2020

Press release | Hamburg

In view of the prevailing market conditions, prices for houses and apartments already built in Hamburg and the environs will continue to spiral upwards in 2020. This is especially true for the less expensive districts and communities. Individual segments of the market vary in the way in which the enormous demand is fuelling the attainable selling prices: standard condominiums/apartments* within city limits are set to rise most, increasing by 7.0 % against 2019, whereas prices for standard single-family homes** will rise by only 2.1 %. Prices in the city areas will converge even more than in 2019. In the environs houses and apartments will sell for 6.3 % more. Here price parity was reached in 2019. These figures emerge from the G&B Price Trend which Grossmann & Berger has compiled in its new market survey for stock residential properties in Hamburg and the environs 2019/2020.
Home-buyers flexible on location, very fussy about property quality
High prices and the shortage of properties for sale in Hamburg’s core city districts are increasingly forcing would-be home buyers to extend their search to other locations. “For this reason prices in the less expensive regions are rising towards levels in other districts, and this process will accelerate in 2020,” says Lars Seidel, managing director of Grossmann & Berger. The catch-up process is generating huge price increases which ripple out from the central city districts to the periphery and environs. “One reason why would-be home buyers are becoming ever more flexible about locations is that workplaces have changed considerably and increasing numbers of people can work from their home office. In terms of the actual property, however, they refuse to compromise.”
Surge in demand for apartments
Apartments, especially on the edge of the city and in those parts of the environs with good transport options, are more popular than ever. High demand is encouraging the construction of new apartments on the city’s periphery and in its environs, thus further cranking up prices in this segment of the market,” says Andreas Gnielka, head of department, residential properties stock at Grossmann & Berger. This trend is also reflected in the five-year statistics: during the period 2016 to 2020 prices for apartments in the environs will climb by 36.0 % and within city limits by 27.8 %. House prices will rise appreciably less steeply. First and foremost this development is due to older clients in search of an age-appropriate property in a quiet location with good infrastructure.
Locations with potential; Curslack and Tremsbüttel
A combination of huge demand and the rate at which prices in cheaper areas are catching up with the mainstream leads Grossmann & Berger to expect client focus to shift to peripheral city districts such as Curslack or readily accessible communities in the environs such as Tremsbüttel. “In Curslack houses will sell in 2020 for 29 per cent less than the average paid for a house in Hamburg,” explains Gnielka. Moreover, the construction of some 1,400 homes along the Schleusengraben canal in Bergedorf is acting as a boost for Curslack, which is progressively transforming from an agricultural and manufacturing area into a residential location. “In the medium term, commuters will find Tremsbüttel in the north-east environs more attractive when the planned train line from Altona to Bad Oldesloe is completed in around 2027. Moreover, single-family houses here will cost 43 per cent less in 2020 than the Hamburg average,” adds Gnielka.

G&B Price Trend | Housing stock | Hamburg and environs | 2019/2020  
  City districts   Environs  
Highest rate of increase District 2019/2020 [%] Community 2019/2020 [%]
                               Apartments* Billstedt +15.2 Drage +18.8
                               Houses** Finkenwerder +15.6 Drage +15.8
Lowest rate of increase   2019/2020 [%]   2019/2020 [%]
                               Apartments* Finkenwerder +2.9 Borstel-Hohenraden, Hoisdorf, Prisdorf 0.0
                               Houses** Rotherbaum, Winterhude, Othmarschen +1.0 Hoisdorf 0.0
Most expensive
city district/community
  Ø 2020
[€/m² of living space]
  Ø 2020
[€/m² of living space]
                              Apartments* Harvestehude 8,600 Aumühle, Wohltorf 4,100
                               Houses** *** Harvestehude 10,500 Wentorf 4,400
Most inexpensive
city district/community
  Ø 2020
[€/m² of living space]
  Ø 2020
[€/m² of living space]
                               Apartments* Rönneburg 2,700 Todendorf 1,800
                               Houses** Rönneburg, Wilstorf 3,200 Rausdorf 1,800
Source: Grossmann & Berger GmbH

G&B Price Trend: Assessment of the attainable prices for standard properties, well constructed and fitted out, in good residential neighbourhoods:
* Standard condominium/apartment: vacant, 3 rooms, around 80 m² living space, 1st upper floor, lift (elevator), fitted kitchen
** Standard single family house: detached, with cellar, at least 130 m² of living space, plot size typical for the location
*** Standard town villa: 2 to 3.5 stories, at least 150 m² of living space, lavish fit-out, garden
The detailed market survey may be downloaded from our website; it includes prices charged in the regions: Central and Alster, Alstertal and Walddörfer, North, East and Sachsenwald, West and Elbe suburbs, South, Environs.

Press contact

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Britt Finke

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