In 2018 average purchase prices for new build condominiums/apartments across all districts of Hamburg rose by a moderate 4.2% year on year. In 2017 prices had slipped back slightly after their strong rise in 2016. In particularly sought-after areas, which Grossmann & Berger classifies as the top‑23* districts, the average price rose by 3.6%. Looking at all Hamburg
, the average new build apartment sold for some €5,460/m² of living space, but in the top 23 residential locations
the figure was about €6,950/m².
Further price increase of up to 10%
“Following the especially strong price increases in 2016 and the preceding years, this is now the first time we can say prices are growing at a slower rate,” says Frank Stolz,
head of Hamburg new build sector at Grossmann & Berger. This is also noticeable in the top 23 locations, where in 2016 prices rose 17% above their levels in the prior year. “We believe it is unlikely that we are nearing the end of the cycle. The population is still growing apace and the number of completions is too small; these factors, coupled with the persistently low interest rates, are likely to fuel demand for homes”, says Frank Stolz
. Grossmann & Berger therefore reckons with only a brief lull in the market and expects to see prices for new build apartments rise between 5% and 10% per year for the next three years.
Huge price span, depending on location and property
In 2018 the average price of a new build apartment in Hamburg offering 3.1 rooms and 94 m² of space was €518,500. The cheapest property sold in 2018 was located in Farmsen-Berne. This four-room apartment on the ground and basement levels sold for €2,900/m² of living space. In Grossmann & Berger’s statistical survey the most expensive apartment purchased in 2018 cost €16,000/m² of living space and is located on the shore of the Alster Lake in the Rotherbaum district. A lonely outlier on the new build market in 2018 was the apartment in the Elbphilharmonie concert house that changed hands for more than €38,500/m² of living space.
Bahrenfeld and Barmbek North are new top locations
Top locations are especially marked by an ongoing shortage of available properties. In some parts of the city social preservation orders have been issued, which helps to explain the limited potential for new builds. In recent years the choice of new build apartments in districts such as Harvestehude, St. Georg, Sternschanze and St. Pauli was particularly narrow. Short supply is increasingly leading buyers to shift their focus to other locations. New favourites are currently Bahrenfeld and Barmbek North. In 2018 a new build apartment in Bahrenfeld cost an average of €5,550/m² of living space, in Barmbek North the figure was €5,730/m². Grossman & Berger has adjusted its survey to reflect this shift in focus and increased the number of top locations from 21 to 23.
The number of new build projects in this survey of all Hamburg rose to 110 in 2018 (2017: 86), although the number of units remained almost identical at 1,745. In the top 23 residential areas more compact floor plans provided an average of 88 m² of living space. Compared with prior years, apartments for sale in sought-after areas are now noticeably smaller in size (2015: 106 m²).
Premium segment redefined
In the wake of a general rise in prices over recent years, Grossmann & Berger has revised the definition of the premium segment and increased the lower price limit from €8,000/m² of living space to €10,000/m². In 2018 the average price per square metre for property in this segment of the Hamburg market was €13,100/m². Comparisons over a five-year period reveal relatively moderate price growth of 10.5%. The number of apartments on offer has risen but the size, in terms of average living space (108m²) and number of rooms (2.9), has contracted.
* Grossmann & Berger counts the following 23 parts of the city with the highest level of new-building activity as the top 23 residential districts.
Alsterdorf, Altona-Altstadt/Altona North, Bahrenfeld, Barmbek North/Barmbek South, Eilbek/Hohenfelde, Eimsbüttel/Hoheluft West, Eppendorf/Hoheluft East, HafenCity, Harvestehude, Lokstedt, Othmarschen, Ottensen, Rotherbaum, St. Georg, St. Pauli/Sternschanze, Uhlenhorst, Winterhude.
The detailed market survey
will be available from our website at the beginning of April.
Photo: One of the new build developments started in Hamburg in the year 2018 is the “Anker 98
”. 19 new apartments are planned in the two buildings set between Bernadottestrasse and Elbschaussee. Source: Grossmann & Berger GmbH