Hamburg apartment building market: Between revival and reclassification

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.

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.

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.

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.

The entire market report Apartment Buildings Hamburg 2025 including graphics can be downloaded here.