To date the coronavirus pandemic has had no effect on the prices paid for new-build apartments
(condominiums) in Hamburg. Following a massive surge in prices the year before (+27 %) the anticipated consolidation was noted in 2020; even so, the average asking price for a home in Hamburg rose by a further 4 %. Research by Grossmann & Berger indicates that in 2020 the average price for a new-build apartment in Hamburg was € 7,260/m² of living space. The impact of the pandemic was clearer in terms of supply. Building permits and loans took longer to process, causing delays to some development projects. As a result the number of new-build apartments offered for sale in Hamburg in 2020 dropped year on year by 10 % to 1,265 units. “This contrasts with ongoing strong demand, because people continue to regard new-build properties as very safe investments that have the potential to increase in value. The extremely low mortgage rates are fuelling demand,” says Frank Stolz
, head of Hamburg new build sector at Grossmann & Berger.
Occasionally square metre prices top €20,000
In particularly sought-after areas, which Grossmann & Berger classifies as the top‑23* residential districts, the average price per square metre rose by 8 % in 2020 to stand at €9,370/m² of living space. In 2020 the highest asking prices per square metre of new-build apartment (condominium) were noted in Rotherbaum district (€22,260/m² of living space), HafenCity (€13,800/m²) and St. Georg (€12,930/m²). The number of units on sale in the top 23 residential districts sank to 527, a level 23 % below that of 2019. 2020 saw the start of the sales process for 18 new-build developments in these top locations. Overall in Hamburg 76 new-build developments came onto the market.
Forecast: Slight to moderate price rises expected
“At this point in time and in view of the pandemic one cannot forecast with any certainty the way prices will develop. However, due to strong demand we expect prices to hold firm or rise moderately,” remarks Stolz.
The G&B Price Trend for 2021 shows that, taking the whole of Hamburg into account, the average asking price for new-build apartments (condominiums) is likely to be €7,300/m² of living space. In 2021 new-build apartments in the top 23 residential locations will probably cost an average €9,400 per square metre of living space.
* Grossmann & Berger counts the following 23 parts of the city with the greatest new-build demand 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 Brief Survey
may be downloaded from our website.