Investment Market Hamburg 2Q2021

Volume of transactions remains low


Press release | Hamburg
30.06.2021


Hamburg’s market for investments in commercial properties started the year slowly and gained no further momentum in the 2nd quarter of 2021. Transactions completed in the first half of 2021 totalled only some €1.1bn. Trades have thus plummeted 46 % below the €2.0bn traded in 2020, when the second-highest-ever total for a half-year was recorded. The half-year result for 2021 is as low as the result in 2019 and well below the ten-year average of €1.51bn. Commenting on the market, Sandra Ludwig, managing director of Grossmann & Berger, remarks that, “Whereas the first-quarter figures were influenced by trades carried over from 2020, very few properties came onto the market in the new year, so that a high trading volume could not be expected.” Grossmann & Berger, a member of German Property Partners (GPP), expects the market to revive in the second half year, because some large properties are still in the transaction pipeline. “Demand for core properties is as high as ever, putting even greater pressure on yields, above all in the logistics sector. In view of the ongoing shortage of real estate, however, we expect the overall volume of trading for the year to be unspectacular,” says Ludwig.
 

Investment market Hamburg details:

  • Hamburg East sub-market accounted for some 38 % of the total volume traded (14 transactions), thus finishing ahead of City (29 %) and Am Flughafen/Airport (14 %). This ranking is partly due to the sale of the “Spectrum” at Amandus-Stubbe-Strasse 10, which DWS Group bought from Fiege Deutschland. It was the highest-priced transaction in the 2nd quarter of 2021 at €189m.

  • Office real estate was the predominant class of asset in the first two quarters of 2021, accounting for 50.3 % of total trading. There was also great demand for logistics real estate, and this category accordingly placed second with 21.6 % of the market (Q2/2020: 0 %). Retail premises accounted for 12.1 % of the total volume of transactions.

  • Because no portfolio sales were completed in the 1st quarter of 2021, their share of the total was a low 9 %.

  • Only two trades - “Spectrum” and “Hamburg Süd Haus” - were noted in the price category of €100m or more and together they comprised a third (32 %) of the volume of transactions.

  • Specialist funds (25 %), open-ended property retail funds (22 %) and fund managers (20 %) were the biggest groups of buyers. The most active group of vendors consisted of corporates/owner-occupiers (37 %).

  • Year on year the share of overseas buyers remained at a very low 15 %. International investors featured more prominently as sellers, taking a share of some 28 %.

  • High demand continues to compress prime yields on office and logistics properties: year on year yields on office properties dropped from 2.80 % to 2.60 %, and on industrial and logistics real estate from 4.20 % to 3.80 %. The prime yield on commercial buildings remained stable at 2.70 %.


Investment market | Hamburg | 2021 Q1 -2
Transaction volume [€ millions] 1,090
against prior yr [%] -46
Share of trading in CBD [%] 29
Proportion of international investors [%] 15
Prime net yield, office [%] 2.60
against prior yr [percentage points] -0.20
Prime net yield, commercial buildings [%] 2.70
against prior yr [percentage points] ±0.00
Prime net yield, logistics properties [%] 3.80
against prior yr [percentage points] -0.40
Strongest asset class Offices
Strongest asset class [%] 50.3


















Selected top transactions | investments in Hamburg | 1st + 2nd quarters of 2021
Project/property
Street no.
Sub-market Asset class Buyer/investor Vendor: Purchase price*
[approx. €m]
“Spectrum”
Amandus-Stubbe-Strasse 10
Hamburg East Warehouse/
logistics
DWS Group Fiege Deutschland 189
“Hamburg Süd House”,
Willy-Brandt-Strasse 59-63
City Offices Union Investment. Dr. August Oetker Nahrungsmittel > 150
“Campus Stapelwerk”, Meiendorfer Strasse 205 Hamburg East Mixed use Warburg-HIH Invest AURELIUS Equity Opportunities 76
“Krohnstieg Centre”, Krohnstieg 41-43 Hamburg East Retail Hahn Immobilien Beteiligung HBB Hanseatische Betreuungs- und Beteiligungsgesellschaft 65
“D10 Domkontor”,
Domstrasse 10
City Offices Caleus Capital Investors Savills Investment Management 64

*The purchase prices stated are based on publicly available data, where none is available an estimate is made; transactions occurring in the quarter dealt with in this report are highlighted.
 
 
The complete investment market survey will soon be available and can be downloaded from our website.

Press contact

Visitenkarte
Berit Friedrich


Bleichenbrücke 9
20354 Hamburg

b.friedrich@grossmann-berger.de

040-350 802 620
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