Supply trailing behind demand
In the whole of 2021, only seven transactions were noted in the price bracket of €100m or more: less than half the figure noted in 2020 (15).
Investors have shown even greater interest in office real estate and accordingly this class of asset accounted for 66 % of the market by the end of 2021 (2020: 53 %). Logistics properties were also far more popular in 2021, comprising 14 % of the market volume (2020: 2 %).
Hamburg East sub-market posted 22 transactions and 24 % of the volume traded, pulling ahead of City (17 %) and St. Georg (12 %).
Portfolio trades made up 13 % of the market, a year on year decline of over 50 %.
By the close of 2021 open-ended property mutual funds (27 %) had become the biggest group of buyers, pushing developers down to third place in the ranking (19 %). Fund managers occupied second position (22 %). Corporates/owner-occupiers comprised the biggest group of vendors (21 %) followed by fund managers (20 %)
By the end of the 4th quarter of 2021 international buyers comprised 24 % of the total market, thus remaining below their 38 % share a year before; however, international vendors featured in 24 % of total sales volume in both years.
Prime yields are currently settling at low levels, having, for the most part, fallen year on year. The prime yield on office properties has contracted by 0.20 percentage points to 2.60 % and on industrial and logistics properties by 0.50 percentage points to 3.50 %. On commercial buildings the prime yield remained unchanged at 2.70 %.
|Investment market | Hamburg | 2021||Q1 -4|
|Transaction volume [€ millions]||3,200|
|against prior yr [%]||-40|
|Share of trading in CBD [%]||17|
|Proportion of international investors [%]||24|
|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]||-0.50|
|Strongest asset class||Offices|
|Strongest asset class [%]||66|
Project / property
|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|
|Headquarters “Marquard & Bahls”, Koreastrasse 7||HafenCity||Offices||JP Morgan Asset Management||Marquard & Bahls||confidential|