Prices leap yet again - rise of about 20 per cent

Press release | Hamburg

In 2015 prices for new build condominiums in Hamburg were stagnant, but they rose all the more steeply in 2016. The dynamic growth seen in the 1st half of 2016 continued in the 2nd half. Between 2015 and 2016 the overall average square metre prices in Hamburg and in the city’s top 16 residential locations* climbed some 18%. Taking the entire city into account, the average price per square metre for new build condominiums was €5,460; in the top 16 locations it was €6,620.
Market for new builds is functional
“In both cases average rates have risen well above the old psychological barriers of €5,000 and €6,000. Compared with 2015, prices for all Hamburg have risen by more than €800 and for property in the top 16 locations by €1,000,” says Frank Stolz, head of new build business for the Hamburg property services provider Grossmann & Berger. “Although prices in the new build segment have reached a new high, the market is functional. Demand is higher than ever; it is rare to find empty space in this segment anyway, and with interest rates five times lower than in the past, even properties that are two or three times more expensive are affordable. Unlike the German Property Federation (ZIA) we do not expect to see prices fall in Hamburg in 2017.”
Top 16 residential locations offer most properties
In the whole of Hamburg the selling process began in 2016 for 1,489 new-build apartments in 87 developments. For the third time in a row the number of units shrank, falling 6% below the level of 2015. “Of the past few years, 2013 saw the largest number of units - 2,200 - on the market,” says Stolz. Some 47% of all new build condominiums were offered in the top 16 residential locations. In 2016 706 residential units in 33 developments came onto the market. Compared with 2015, this represents 18% more units. The apartments in the Elbphilharmonie concert hall complex have not been included in the figures; being so unique in character and thus extremely expensive, these outliers would skew the statistics.
Boom in Altona, Eppendorf and HafenCity
Of the top 16 locations, 65% of the new build condominiums on the market were in three districts: Altona-Altstadt/Altona North (226 units), Eppendorf/Hoheluft East (124) and HafenCity (111). “In view of the progress of redevelopment and construction work in central Altona (“Mitte Altona”) and HafenCity, the physical distribution of properties on the market is unlikely to change much in the next few years,” adds Stolz. No new project was started in Barmbek South, Harvestehude or St. Georg.

Rotherbaum and Winterhude hit five figures
In 2016 the priciest properties were to be found, as in the previous year, in Rotherbaum, at a cost of €12,410/m² of living space. The average price in Winterhude also reached five figures at €10,180/m² of living space. The third most expensive location was HafenCity at €8,650/m². At the other end of the price scale for the top 16 residential locations, properties in Lokstedt cost €4,590/m² of living space, in Eilbek/Hohenfelde €4,900/m² and in Alsterdorf €4,970/m². Taking the whole of Hamburg into account, the most reasonable prices for new build condominiums were €3,190/m² of living space in Neugraben-Fischbek - unchanged from the year before -, €3,270/m² in Eissendorf and €3,290/m² in Horn.
Premium properties twice the price paid in top 16 locations
For the first time Stolz has made a separate assessment of the premium segment with apartments selling for €8,000/m² and upwards. The average asking price per square metre of a premium new build apartment in Hamburg was €11,370 in 2016. “For exclusive apartments that have some truly unique feature(s), buyers in Hamburg paid nearly twice the going rate in the top 16 residential locations,” comments Stolz. That translates into a 9% increase compared with 2015. Stolz forecasts further price rises in the premium segment too.
Premium properties also available in Wandsbek
In 2016 a total of 117 new build apartments were included in the premium segment. 40% of these were in HafenCity, both Eppendorf and Uhlenhorst accounted for 13% each, 7% were in Rotherbaum and 7% in Winterhude. Ten per cent of the premium properties were outside the top 16 residential locations. They stood in Blankenese, Nienstedten, Gross Flottbek and Wandsbek. “It was no surprise to see the Elbe suburbs in the list, because of their proximity to the river. But Wandsbek was unexpected and shows that it is not only location that makes an apartment premium, but also its special quality,” says Stolz.
* In the new build sector Grossmann & Berger counts the following 21 city districts, conflated into 16 residential areas, as the top 16 with the highest level of new-building activity: Alsterdorf, Altona-Altstadt/Altona North, Barmbek South, Eilbek/Hohenfelde, Eimsbüttel/Hoheluft West, Eppendorf/Hoheluft East, HafenCity, Harvestehude, Lokstedt, Othmarschen, Ottensen, Rotherbaum, St. Georg, St. Pauli/Sternschanze, Uhlenhorst and Winterhude.
The full market survey of new builds will be available to download from our website as of 06.04.2017. Please note, that the survey is available in German only.
Source, graphics + visualizations: Grossmann & Berger GmbH

Photo caption: Costing an average of €9,900/m² of living space, the new build development Warburg Strasse 35 in Rotherbaum is one example of a premium development that Grossmann & Berger is now marketing.

Press contact

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Britt Finke

Bleichenbrücke 9
20354 Hamburg

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