In the past year the price of a new build apartment in all Hamburg
districts rose by about 26 % on average. Square metre prices averaged €6.980 and were thus some €1,460 higher than in 2018. In particularly sought-after areas, which Grossmann & Berger classifies as the top-23* residential districts
, the average price per square metre rose by 22 % in 2019 to stand at €8,660. In 2018 the increases were far more moderate, rising by 5.3 % in Hamburg
and 5.8 % in the top 23
Low interest rates fuel property prices
“There was a surprisingly steep rise in prices in 2019, akin to the situation in 2016. On the whole, prices are being driven by the extremely low interest rates. Within one year the interest rate halved and in autumn 2019 it sank to an all-time low of 0.7 per cent for a ten-year loan. Although demand was already high, this then fuelled further growth and pushed prices up even more”
, comments Frank Stolz
, head of Hamburg new build sector at Grossmann & Berger. “In addition, the huge supply of new-build apartments costing over 10,000 euros per square metre led to higher overall prices. One of these up-market developments is “Waterlofts” on Kanalstrasse in Uhlenhorst (101 units); another is “FiftyNine Strandkai” in HafenCity (76 apartments). We don’t see this many premium apartments every year. Therefore, when taking all of Hamburg into consideration, we do not expect any further rises in 2020”
, says Stolz.
He adds that higher land prices and construction costs together with too little building activity are also driving prices up.
Fewer new-build apartments in Hamburg overall, but greater supply in top 23 locations
89 new developments added 1,401 units to the Hamburg
housing market in 2019. Compared with the previous year, the market has contracted by 20 % (2018: 108 new developments and 1,757 residential units). The average new-build apartment was 93 m² in size, had 3.2 rooms and cost €668,280. Grossmann & Berger counted 19 new-build developments in the top 23 residential locations in 2019 (2018: 29). Here 681 units came onto the market, representing a rise of some 28 % year on year (2018: 534 units).
The biggest supply of apartments was in Rissen, where 136 new units came onto the market, followed by top-23 locations Eimsbüttel (113 units), HafenCity (105 units) and Uhlenhorst (101 units).
Highest asking prices in HafenCity
Last year the highest asking prices for new-build apartments were noted in HafenCity, where the average square-metre price was €12,510, followed by Nienstedten (€10,910/m² of living space), Uhlenhorst (€10,750/m²), Othmarschen (€9,840/m²) and Ottensen (€8,360/m²). Looking at average prices, home-buyers found the most inexpensive new-build units in Billstedt (€3,680/m² of living space), Neugraben-Fischbek (€3,810/m²) and Wohldorf-Ohlstedt (€3,880/m²).
Premium segment has quadrupled
Grossmann & Berger defines the premium new-build segment as apartments with asking prices of more than €10,000/m² of living space. The supply of properties in this sector grew 300 % last year to 146 units (2018: 37 units). In this segment of the Hamburg property market the average price per square metre was € 12,920. This price was well below the prior year’s figure (2018: € 13,860/m² of living space.) “Over time, the premium segment will see significant price rises. This is evident from developments that are currently being planned,”
The most expensive apartment in the premium new-build segment went on sale in HafenCity for a price of €22,000 per square metre.
* 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.