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Real estate for capital investment in Hamburg

How are property and rental prices in the Hanseatic city developing? Do apartments and houses represent a worthwhile investment in the long term? If you are interested in buying a property in Hamburg, we have compiled some interesting information about investing in residential property.

Investment in Hamburg real estate

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Facts about your investment in Hamburg

1 | Metropolis on the upswing

With one of the largest transshipment ports in the world and its international airport, Hamburg is one of the most critical logistics locations in Europe. The Hanseatic city also offers excellent prospects on the job market as a center of education, research, and media. Not surprisingly, the city-state attracts more and more people. Current forecasts expect the number of inhabitants to rise to around 2 million by 2040.

Hamburg: Facts and figures at a glance

Hamburg: Facts and figures at a glance

1.89
million inhabitants


1.04
million households


54.5%
single households


102,000
resident companies


19
universities


101,000
students


2 | The construction industry is booming

High-quality new construction projects are supposed to meet the demand on the housing market. According to the Federal Statistical Office, the number of building permits issued has risen steadily in recent years and reached a record level of over 12,450 in 2017. Hamburg thus offers attractive options for capital investors.

3 | Growing demand, rising rents

New apartments are also necessary for the Hanseatic city due to the continuing high level of influx. Rental apartments are in great demand here, which reflects in ever-higher rents. An annual increase in rents of around 3 to 5 percent is not uncommon. According to the current rent index of the Statistics Office North, the average net rent in Hamburg is € 8.66 per square meter.

Various factors play an essential role here: in addition to the size of the apartment, the location and the year of construction are also decisive, as the following examples clearly show:

Rental price development


Existing building: apartment size 66 – 90 m², year of construction 1978-1993
New building: apartment size 66 – 90 m², year of construction 2011-2018

Apartments in ornately decorated old buildings – such as those in Altona – are trendy in Hamburg. The current rent index nevertheless shows that you can achieve the highest rents with new apartments.

4 | Popular districts: This is where the people of Hamburg like to live

Eimsbüttel, Winterhude and HafenCity: according to the Hamburger Morgenpost, these are the favorites among the 104 districts of the Hanseatic city. In a survey, about 7 percent of the participants said that they would like to live in Eimsbüttel. Winterhude received 6 percent of the votes, HafenCity followed with 5 percent.

These districts are also among the top 10: Barmbek-Nord, Eppendorf, Ottensen, Blankenese, Barmbek-Süd, Altona-Altstadt and St. Pauli.

5 | Living in Schleswig-Holstein as an alternative

Living space is becoming increasingly scarce, and rents are rising. As a result, more and more Hamburg residents are considering an option: work in Hamburg, live in Schleswig-Holstein. The green surroundings of the Hanseatic city offer several advantages – especially in communities with excellent transport connections, such as Norderstedt.

Located directly on Hamburg's northern city limits, Norderstedt seamlessly connects to the Hanseatic city. Without noticing it, you can cross the state border with the U1 underground from Langenhorn. With its well-developed infrastructure and the short distances to the countryside, Norderstedt is especially interesting for families.

The increasing attractiveness of Norderstedt also leads to an increase in rents here, north of Hamburg. The business magazine Capital lists the current average prices per square meter:

Durchschnittliche Mietpreise in Norderstedt


6 | Hamburg and the “rental brake”

As in many other large cities, Hamburg is subject to the Tenancy Law Amendment Act, or the so-called “rental brake”. It states that rents for new leases in sought-after areas may only be a maximum of ten percent above the local comparative rent.

Exceptions to this rule include new buildings used and rented for the first time after 2014. So buying a new property gives you more freedom of choice.

7 | Property in Hamburg as an investment: Conclusion

In Hamburg, the signs are pointing to growth. The Hanseatic city keeps drawing more and more people, which is why current forecasts are predicting a further shortage of living space. In the long term, therefore, the metropolis offers good rentability and stable returns. The purchase of an apartment or house in Hamburg as an investment property is, therefore, an attractive investment.

8 | Facts and figures around Hamburg

Quality of life


Hamburg is among the greenest cities in Germany, and is regularly ranked in Mercer’s “Quality of Living” top 20. The city was recently ranked 19th.

   1st place: Vienna
  10th place: Sydney
 19th place: Hamburg
  45th place: New York
  57th place: Rome
  74th place: Dubai
103rd place: Shanghai
167th place: Moskow
231st place: Baghdad

Quality of life

Supply and demand


Net remuneration


Population growth


Sources: Statistikamt Nord

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