Volume of transactions gaining fresh momentum
In the first three quarters of 2021 four transactions priced at over €100m accounted for 32 % of the volume traded. These included the sale of the “Multimedia Centre Rotherbaum” for which Values Real Estate paid Vermögensverwaltung Jahr some €170m – the largest agreement concluded between July and September.
Comprising 62 % of the volume, office real estate was the most sought-after asset class up to the end of the 3rd quarter of 2021 and investors still believe in its future despite changing work patterns. Logistics real estate lost ground, making up 12 % of the total (Q3/2020: 20 %), and the proportion of mixed-use properties remained stable at 11 % of the total volume.
Hamburg East sub-market accounted for some 27 % of the total volume traded (17 transactions), thus finishing ahead of City (15 %) and St. Georg (15 %).
Portfolio trades made up 19 % of the market, a year on year decline of around 50 %.
Fund managers (29 %), developers (23 %) and open-ended property retail funds (19 %) were the biggest groups of buyers. Fund managers were also the biggest group of vendors (21 %), closely followed by corporates/owner-occupiers and developers, each with a 20 % share of the market.
Overseas buyers accounted for 17 % of the volume traded, remaining well below their share a year ago (41 %). The proportion of international vendors remained at a steady 19 %.
High demand continues to compress prime yields on office and logistics properties. Year on year yields on office properties dropped by 7 % to 2.60 %, and on industrial and logistics real estate by 17 % to 3.50 %. The prime yield on commercial buildings remained stable at 2.70 %.
|Investment market | Hamburg | 2021||Q 1-3|
|Transaction volume [€ millions]||2,100|
|against prior yr [%]||-42|
|Share of trading in CBD [%]||15|
|Proportion of international investors [%]||17|
|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 [%]||3.50|
|against prior yr [percentage points]||-0.70|
|Strongest asset class||Offices|
|Strongest asset class [%]||62|
Project / property
|Sub-market||Asset class||Buyer / investor||Vendor||
|DWS Group||Fiege Deutschland||189|
|“Multimedia Centre Rotherbaum”, Rothenbaumchaussee 76-80||Alster West||Offices||Values Real Estate||Vermögensverwaltung Jahr||170|
“Hamburg Süd House”,
|City||Offices||Union Investment.||Dr. August Oetker Nahrungsmittel||> 150|
|Norderstrasse 101||St. Georg||Offices||B & L Gruppe||Commerz Real||150|