Lüneburg and environs: Further price increases expected in the city and its environs

Market Survey Lüneburg and environs 2018/2019

Press release | Lüneburg

Prices for residential properties in Lüneburg and its environs will continue to rise in 2019, but considerably less steeply than in recent years. The city centre and locations near the centre will remain the exceptions. This is the conclusion drawn from the G&B Price Trend, which Grossmann & Berger has published in its latest market survey. “Particularly in the very desirable locations, there is still too little on offer to satisfy the large demand. Potential buyers and tenants are therefore currently concentrating on attractive new builds,” comments Andreas Gnielka, head of residential building stock/letting at Grossmann & Berger. Taking the entire city area into consideration, Grossmann & Berger expects to see prices for residential properties rise at an average rate of 4.4% - well below the 6.5% seen in 2018. Forecasts indicate that the average selling price of apartments*** in Lüneburg will rise over the course of next year by 4.9% to € 2,780/m² of living space; single family houses** will rise by 3.9% to € 2,900/m². Grossmann & Berger calculates that the prices of apartments in the environs of Lüneburg will rise by 3.8% to € 2,190/m² of living space and by 3.3% to € 2,220/m² in the case of single family houses.
High price rises forecast for 2018 have materialized
In line with the forecast, prices continued their steep upward trajectory. Thus the average price paid for single family houses inside city limits climbed year on year by 6.5%; apartment prices rose by 6.9%. In the environs prices were 6.4% higher for single family homes and apartments cost 8.2% more than in 2017.
Move into bands of alternative locations around the city centre
Because there are few residential properties in the popular city centre locations on the market, attention is shifting to the less sought-after locations. “In the city centre both the supply of homes and the potential for new building are extremely limited. Potential buyers are therefore expanding their search by radiating out from the centre,” says Regina Trope, Grossmann & Berger sales manager for Lüneburg. Interest in luxury apartments in exclusive waterfront locations in the city centre also remains high. For such properties, Grossmann & Berger expects to see prices rise by 7.4% in 2019.
Lüneburg city 2019: Locations close to or within easy reach of the centre have greatest potential
Apart from centrally located real estate, the greatest price increases will be noted for locations with convenient access to Lüneburg centre and to the metropolitan region. Accordingly, the price of a single-family home in Ochtmissen is expected to rise by 6.3%, and in Mittelfeld by 5.5%. In the case of apartments, Grossmann & Berger predicts the biggest increases in Mittelfeld (+7.9%) and in Altstadt/centre (+7.4%). Young families, moreover, prefer single family homes in districts such as Oedeme. The most expensive residential district in Lüneburg is and remains Rotes Feld. In 2019 this district is expected to see an average price of €3,920/m² of living space being paid for single family homes and €3,890/m² for an apartment.
Lüneburg environs: biggest price rises in Ilmenau, Gellersen and Scharnebeck
In the environs of Lüneburg a similar trend to that in the city itself may be observed: prices in established top locations remain high, but the greatest increases are seen in the adjoining municipalities. Grossmann & Berger therefore expects to see the prices of single family homes rise most in Ilmenau (+4.2%), Gellersen (+4.1%) and Ostheide (+3.8%). When it comes to apartments, the front runners are Scharnebeck (+4.4%), Ilmenau (+4.3%) and Bardowick (+4.0%). Adendorf is still the most expensive municipality in the environs of Lüneburg, where forecast prices for 2019 are €2,900/m² of living space for houses and €2,830/m² for apartments. Bardowick remains much in demand too, above all due to commuters from Hamburg moving to the area. In the environs sought-after properties include row or semi-detached (duplex) houses offering up to 140 m² of living space and three-room apartments no larger than 90 m². Single family homes with more than 120 m² of living space are also in demand.  

A scattering of new build projects in the rental sector

High demand and a shortage of supply is likewise the hallmark of the rental sector. Planned projects such as the “Hanseviertel Ost” will have little impact on the mismatch between supply and demand. New build rental apartments are currently available in the “Hanseviertel” to the north-east of the city centre and in the new “Ilmenaugarten” residential district, now under construction in the eastern part of the city centre on the site of the old rail freight station. Grossmann & Berger has now started the process of brokering the 86 rental apartments in Ilmenaugarten 77-83. “The average rent for a property in this development is €11.05/m² of living space,” says Trope. “For a new build property in such a central part of Lüneburg this is a relatively reasonable price.”
Official figures document price growth
In addition to the Price Trend, Grossmann & Berger takes a look in its market survey at the transactions actually completed within the city limits of Lüneburg as recorded by the Gutachterausschuss (Municipal Real Estate Evaluation Committee). Their records indicate that in 2017 the total amount spent on residential properties was appreciably less than in previous years. The actual number of properties sold was also smaller, although the percentage decline was lower than that for the total spend. It follows, therefore, that the average purchase prices of residential real estate have risen, thus bearing out Grossmann & Berger’s forecasts.

G&B Price Trend: Assessment of the attainable selling prices for the following standard properties, well constructed and fitted out, in good residential neighbourhoods:
* Environs: Adendorf, Bardowick, Gellersen, Ilmenau, Ostheide and Scharnebeck
** Standard single family house: detached, with cellar, at least 130m² of living space, plot size typical for the location
*** Standard condominium: vacant, 3 rooms, around 80 m² living space, 1st upper floor, lift (elevator), fitted kitchen

Source of graphics: Grossmann & Berger Research

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