The Hamburg apartment building market picked up significantly in 2025 after a period of restraint. Falling purchase prices in the previous year and more attractive financing conditions in the meantime led to noticeable catch-up effects and an increasing number of transactions. At the same time, the demand for rental housing in Hamburg and the surrounding area remains high. “The Hamburg apartment building market has gained significantly in stability and dynamism over the past year. Many investors have taken advantage of the changed market conditions to be active in the market again,” says Jon-Hendrik Harms, Head of Apartment Buildings at Robert C. Spies.
Return to stability and increasing market dynamics
The average purchase prices for apartment buildings in Hamburg in 2025 were around EUR 3,290/m², around EUR 400/m² above the previous year’s level. The average purchase price factor is currently 21 times the annual net cold rent. In sought-after residential areas, top prices of up to 5,920 EUR/m² were achieved.
The number of transactions increased significantly in 2025 compared to the two previous years: While around 402 apartment buildings were traded in 2024, there were around 510 transactions in 2025. The transaction volume increased to around EUR 1,820 million, around 65 percent above the previous year’s level. “In 2025, lower purchase prices met more attractive financing costs again. This constellation has led to a noticeable revival of the market,” explains Harms.
Buyers examine properties much more selectively
Despite the increased market activity, investors continue to act cautiously and examine properties more intensively than a few years ago. Properties in good structural condition and properties with comprehensible development prospects are particularly in demand. Properties in need of renovation, on the other hand, often remain on the market longer – unless investors recognize value-add potential. “Market participants today act much more analytically and selectively. Factors such as micro-location, energetic condition, third-party usability and development potential are more in focus than they were a few years ago,” Harms continues.
High demand for rental apartments causes rents to rise
The demand for rental apartments remains at a high level, both in the Hamburg city area and in the surrounding area. The background to this is, among other things, fewer people moving into their own homes and the continuing increase in population development. As a result, rents continue to rise across the board. The average asking rents for first-time occupancy increased from EUR 17.60/m² in 2024 to EUR 18.50/m² at present. For re-lettings, an average of around EUR 14.40/m² is currently achieved. “The structural framework conditions continue to speak clearly in favor of the housing market in Hamburg. The demand for rental housing remains high, while supply is growing only to a limited extent,” explains Harms.
Buyer structure: Regional private investors, family offices and portfolio holders
Hamburg’s investment property market continues to be dominated by regional private investors and portfolio holders. In addition, family offices, foundations and smaller and larger real estate companies are active. While private first-time investors often demand smaller properties with a few units, established market participants and family offices concentrate on larger properties.
Good and very good residential areas continue to be particularly in demand
The Elbe suburbs, the forest villages and districts near the Alster such as Rotherbaum, Harvestehude, Eppendorf, Eimsbüttel, Winterhude and Uhlenhorst continue to be among the most sought-after residential areas in Hamburg. Accordingly, high rents and comparatively high purchase price factors are achieved here. The districts south of the Elbe, on the other hand, have a lower price level, but continue to offer development potential.
New construction activity continues to fall short of actual demand. Although around 7,196 apartments were completed in 2024, this level is still not sufficient to relieve the high demand in the long term. There are currently many project plots available on the market – only equity-rich project developers are selectively realising new construction projects.
Outlook for 2026: Market dynamics more cautious again in 2026
After the dynamic year 2025, the Hamburg apartment building market is again somewhat more cautious in the first half of 2026. The background to this is in particular the geopolitical uncertainties and the recent slight increase in financing costs.
Nevertheless, Robert C. Spies expects transaction figures to continue to rise slightly for the year as a whole. “We are currently registering a little more restraint in the market again. At the same time, the fundamental demand for residential investments in Hamburg remains high,” Harms summarises. “How the momentum develops in the further course of the year will depend largely on the macroeconomic and geopolitical conditions.” Apartment buildings with predominantly residential use remain particularly in demand. Properties with higher commercial uses, on the other hand, are examined more intensively and in some cases valued more cautiously.
