Real estate for capital investment in Hamburg

High-quality new construction projects are to meet the demand on the housing market. In the "Contract for Hamburg", the Senate agreed with the districts in 2017 to issue 10,000 building permits annually. With a total of 10,377 building permits issued for apartments, this target was again achieved in 2022. Hamburg thus offers attractive options for capital investors.

Building new apartments is also necessary in the Hanseatic city due to the continuing high influx. Rental apartments are in high demand here, which is reflected in ever higher rents. Currently, the average new-build rent in Hamburg is 18.34 €/m² and 13.89 €/m² in the existing stock. Even though flats in ornate old buildings – such as those found in Altona – are very popular in Hamburg, the current rent index nevertheless shows: the highest rents can be achieved with new-build apartments.

Rental price development

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

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

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, with current rents between 12 and 13 €/m².

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.