CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1} Share on Xing

Hamburg’s real estate investment market becalmed

Verena Bauer • 09/10/2023
At EUR 265 million, the 3rd quarter recorded the strongest transaction volume of the year so far in Hamburg’s commercial real estate market. In total, an investment volume of around EUR 715 million was achieved in the first three quarters, reports international real estate consultancy firm Cushman & Wakefield (C&W). The last time a lower nine-month result was recorded was 14 years ago. The volume is 80 percent below the previous year’s figure, which was particularly strong due to one-off effects (Q1–3/2022: EUR 3.55 billion). The Q1–Q3 5-year average of around EUR 3.19 billion was undershot by 78 percent.

Owner-occupancy strengthens the office real estate segment

From January to the end of September, office real estate and office development projects were the strongest asset class, generating a total transaction volume of EUR 430 million. This corresponds to 60 percent of the total CRE transaction volume. This level was however still 8.0 percent below the very high prior-year figure of EUR 2.20 billion. More than 40 percent of the volume is accounted for by purchases for owner-occupancy. These included the largest office transaction – and at the same time the largest transaction in Hamburg's real estate investment market this year – with a volume of EUR 119 million. PPS Immobilien Holding sold the “Fritz Schumacher Building” on Gänsemarkt in the City Centre submarket to the City of Hamburg in the 2nd quarter.

No transactions in the logistics segment

In the Logistics and Industrial real estate segment, not a single transaction took place in Q3. This means that the transaction volume here has remained unchanged since Q2 at around EUR 100 million, or 14 percent of the CRE total and is 71 percent lower than at this point last year (EUR 340 million). The largest single transaction was the sale of “Panattoni Park Hamburg Nord” to J.P. Morgan Asset Management and Cromwell Property Group in Q1 (over EUR 90 million).

Transaction volume decline of 81 percent for retail properties

At around EUR 80 million, retail real estate generated 11 percent of the CRE transaction volume. This was 81 percent below the previous year's figure of EUR 420 million. One of the most significant single-property transaction was the sale of the “Tibarg Center” by Generali Deutschland Lebensversicherung to Hamburg-based asset management company Prof. Dr. h.c. Hannelore Greve for around EUR 50 million.

Niklas Hensiek, Associate Capital Markets EMEA at C&W, explains: “The pricing phase continues and the restraint in the real estate investment market is expected to continue over the remainder of the year. However, the gap between buyers’ and sellers’ purchase price expectations is increasingly narrowing and concordance is coming closer. By the end of the year, a price level could be reached that would mark the beginning of a market revival in 2024.”

Yields continue to rise

The rise in yields for prime properties triggered by the interest rate turnaround in the summer of 2022 continued in the 3rd quarter of 2023. The net initial yield for first-class office properties in Hamburg’s central locations was quoted at the end of the 3rd quarter of 2023 at 4.40 percent, which is 125 basis points higher than a year ago. The prime yield for commercial buildings in 1a locations is currently 4.30 percent. The year-on-year increase was 60 basis points. For first-class logistics properties, the prime yield is also 4.30 percent, which is an increase of 70 basis points since Q3 2022.

After the tenth increase by the ECB in September 2023, the key interest rate now stands at 4.50 percent. Due to the fact that interest rate changes precede prime yields, C&W expects further increases in yields in these asset classes in the final quarter of the year.

 

 Investment market Hamburg

MEDIA CONTACT

verena bauer
Verena Bauer

Head of Business Development Services, Germany • 60311 Frankfurt am Main

RECENT NEWS

Rethinking European Offices
Rethinking European Offices

Increasing pressure from ESG regulation, changing workplace strategies, lower occupier demand for office space and economic challenges mean that office space in Europe is increasingly threatened by obsolescence and is at risk of becoming unmarketable and therefore unlettable.

Verena Bauer • 18/12/2024

EMEA OUTLOOK 2025
Outlook European Real Estate Market 2025

Improving economic indicators such as GDP growth and resilient labour markets, coupled with more favourable financing conditions, are set to provide positive momentum for the European real estate market in 2025, according to Cushman & Wakefield’s ’EMEA Outlook 2025’ report.

Verena Bauer • 16/12/2024

Law Firms 2024
Law Firms 2024

The latest study ‘Law Firms - Trends and Leasing  Behaviour 2024’ by Cushman & Wakefield shows that the sector continues to favour central, prestigious locations.

Verena Bauer • 05/12/2024

INSIGHTS

Modern dining room. Text: Regulation in the German Housing Market
Insights

Regulation in the German Housing Market

What Investors Need to Know: Legal Framework and Current Market Trends in Leasing. A Report developed by Cushman & Wakefield and Hogan Lovells.
Jan-Bastian Knod • 26/09/2024
Facade of apartmentblocks - with text overlay Micro Apartments
Residential • Investment / Capital Markets

Micro Apartments 2024

The report ‘Micro apartments 2024: An asset class comes of age’  builds on its predecessor from 2021 and analyses the current trends, drivers and opportunities in the German market for micro-apartments. 
Jan-Bastian Knod • 22/08/2024
Inclusive Cities Barometer
Insights • Sustainability / ESG

Inclusive Cities Barometer

Our Inclusive Cities Barometer shows the inclusivity of 44 cities in the EMEA region - including Berlin, Hamburg, Frankfurt, Munich and Cologne.

16/07/2024

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected, for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS