Market report Germany's Top 7 cities 2020 New Developments - Engel & Völkers
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Market report Germany’s Top 7 cities · 2020 New Developments
NEW DEVELOPMENTS MARKET REPORT 2020
Table of contents
6 8 - 9
Market development Specialist topics
10 - 37
The Top 7 cities
in detail
6 New development
market development
38 Stuttgart's hinterland -
A growth region
47 Our new development
locations in Germany
8 The rent cap
40 Thuringia -
A growth region
48 Engel & Völkers -
A strong brand
9 New construction as
a capital investment
42 Engel & Völkers
Development Services
49 Our global
Engel & Völkers
network
10 The Top 7 cities
in detail
46 Glossary -
Well-informed on
50 Imprint
every topic
Table of contents New developments market report 2020 3
An analysis of the Top 7 cities
Hamburg
Berlin
Düsseldorf
Cologne
Munich
Frankfurt am Main
Stuttgart
EDITORIAL
Dear Readers,
Demand for housing in Germany’s metropolises continues to be strong. New con-
struction projects are thus urgently required. The properties which are being created
represent a unique opportunity for buyers to acquire modern newly constructed apart-
ments. Whether for their own use or as a capital investment with a high potential for
appreciation, many people are prepared to pay high prices for new-build properties
with premium fixtures and finishes.
Our first new developments market report analyses the new construction market in
Germany’s Top 7 cities (Berlin, Hamburg, Munich, Cologne, Frankfurt, Düsseldorf
and Stuttgart). It provides valuable information on price development, construction
activity and new construction locations. In addition to this, we have conducted
in-depth interviews with our local experts to discuss the developments and trends in
each city in more detail. An area which we are currently focusing on is market devel-
opment during the corona pandemic and the impact which the virus could have.
Project developers are faced with the daily challenge of recognising demand and mar-
ket development trends to thus ensure that they build the right properties in the right
locations. Use our market report as a tool and benefit from the experience which our
network provides. Our local new developments experts will be happy to provide you
with support.
Yours
Kai Enders
Member of the Engel & Völkers AG management board
Editorial New developments market report 2020 5
DEVELOPMENT OF THE NEW DEVELOPMENTS MARKET
The housing shortage is driving
project development
Germany's metropolises are growing, resulting in a corre- Regional differences
sponding need for new housing. Numerous employers
and a high quality of life are attracting an increasing Regional differences in the new developments segment
number of people to the country's major cities. Conse- are even more pronounced than in the existing properties
quently, demand for additional housing has risen signifi- segment. Demand is undoubtedly the key driver, since
cantly in recent years. New construction and refurbish- without it there is no potential for newly constructed
ment projects are delivering the easing of pressure which properties. Some very exclusive projects are even able to
is so urgently required. In this report Engel & Völkers generate demand which previously did not exist in that
analyses the market for new developments in Germany, location. As a general rule, development projects are
particularly in the Top 7 cities which are experiencing the focused on regions characterised by growth and low
strongest demand, namely Berlin, Hamburg, Munich, vacancy rates. Due to high price levels in the major cities
Frankfurt, Cologne, Düsseldorf and Stuttgart. demand is increasingly shifting to hinterland areas where
the space required is available. This is particularly true
New housing is required to cater to the demand which for Stuttgart and this report therefore includes a focus
exists in all the country's growth regions. This in turn region section which profiles the city’s popular hinterland.
necessitates the approval of new land for construction; Over and above this, some areas outside metropolitan
the densification of inner city areas; the repurposing of regions are experiencing structural change or have old
conversion areas or the full refurbishment of old properties. building stock and can thus provide lucrative opportu-
Building plots are, however, usually scarce in urban areas nities should demand for housing again increase. Such
and project development opportunities are therefore development potential exists in the federal state of
limited. Planners are responding to this by creating entire Thuringia, which we also discuss as a further focus region.
new districts within the scope of major urban develop-
ment projects, providing housing for thousands of people. Residential construction trends
At present a total of some 62,800 new apartments are
required annually in Germany’s first-tier cities, however The quality demands made by buyers and tenants of new-
in 2019 building permits were issued for only approx. build apartments are changing continuously. Project
60,000 units while only 47,000 were completed. Although developers thus face the ongoing challenge of recognising
the number of new homes created in Germany has been
rising continuously since 2009, supply is still insufficient
to satisfy demand. Price development clearly reflects the New construction requirements
in 1st-tier cities up to 2030
resulting strong excess demand. In early 2015 the aver-
age price for a newly constructed apartment in a Top 7
75
62.8
city was 4,801 euros/m2. Just five years later this figure
had risen to 7,565 euros/m2 – an increase of some 58 60
51.4
’000 residential units
48.9
47.0
percent, while the price increase for the entire country in 45
the same period was – just 36 percent or an average price
of 4,657 euros/m2. This trend is expected to continue for 30
as long as there is inflow to the metropolises and no sig- 15
nificant increase in construction activity. It can also be
assumed that many other cities which are characterised 0
2019–2020 2021–2025 2026–2030
by growing demand for housing will experience stable or Average annual new construction requirement
Construction completions (2019)
slightly rising prices in the new developments segment. Source: German Economic Institute Cologne, German Federal Statistical Office,
Engel & Völkers Residential
6 Development of the new developments market New developments market report 2020
Change in average prices quoted for new-build properties
Hamburg
Berlin
Düsseldorf
Cologne
Frankfurt
Change in average prices
quoted for new-build
properties from 2015 to
2020 (1st half of the year)
< 0% Stuttgart
0 < 30%
30 < 60% Munich
> 60%
N/A
Source: empirica-systeme, Engel & Völkers Residential
new trends and realising them in residential projects. The residential units with offices, restaurants and hotels in
greater the number of apartments which meet current one single building.
requirements, the higher the prices which can be achieved.
Demand for small apartments for singles or students is The knock-on effects of the corona pandemic are likely
thus rising significantly in many cities and the response to result in completion delays for construction projects
of project developers has been to create concepts for in the coming years, however developers do not expect
modern micro-apartments which include additional them to result in project cancellations. According to data
services. While demand for this concept primarily exists collected by independent analysis company bulwiengesa,
in city centres, peripheral areas are more likely to expe- residential projects accounting for an area of some 9.7
rience demand for family-friendly apartments. Good million square metres are planned in 1st-tier cities in the
public transport connections or energy efficiency are period to 2024. Approximately 2.4 million square metres
increasingly also becoming key factors and going for- of this space may be affected by completion delays. The
ward it may soon be the case that electric charging stations corona crisis is, however, not expected to impact prices in
are required by law. In the luxury segment light and airy the new developments segment to any great extent, since
apartments offering city views are in particular demand, there has been little change in demand. Delayed con-
while there is again a trend to additional services, such as struction may even stimulate strong demand and thus
concierges. In addition to this modern mixed use con- price development.
cepts are being developed in the metropolises, combining
Development of the new developments market New developments market report 2020 7
SPECIALIST TOPIC
The rent cap
Existing rents are increasingly being curbed or even capped. This has a number
of consequences for the new-build apartment market.
The rent cap has been in place in many German cities number of construction and planning approvals is a good
since 2015. It is a political instrument which is intended indicator of construction activity planned for the coming
to prevent uncontrolled sharp rises in rents. New-build years. The number of construction projects completed
apartments are exempted from the rent cap so that invest- also rose again in 2019.
ment in construction activity will not be inhibited, thus
preventing creation of urgently required housing. In con- The rent cap was recently extended until 2025 and could
sequence the market is split into a regulated and an have a further positive impact on new developments.
unregulated segment. The logical consequence of cap- Stronger intervention in the market, such as the Berlin
ping rents in the regulated sector is that rents in the rent cap, also excludes newly constructed properties,
unregulated market, i.e. for new-builds, will rise, thus however in the mid-term could also result in more apart-
making investment in new-build apartments and projects ments being sold to owner-occupiers.
even more lucrative. The rent cap has therefore resulted
in more construction activity and a simultaneous increase
Rents quoted for new-builds
in the cost of new construction and building land. Due to
lengthy planning and approval processes there will, how- 20
ever, be a delay before these effects are felt. A long-term 15.54 15.80 16.07
15.02
consequence may even be that existing properties are 15 14.10
in euros/m 2
demolished more often and quickly since newly con-
10 10.53 11.17 11.54
structed apartments on the same site have become a much 10,81 10.75
more attractive option. Generally speaking, in recent
5
years there has been a sharp rise in the number of con-
struction permits issued. Data gathered by the German
0
Institute for Economic Research Berlin indicates that this 2016 2017 2018 2019 2020
Q2 Q2 Q2 Q2 Q2
increase is much higher in municipalities with a rent cap
1st-tier cities Germany
than in those without restrictions. An increase in the Source: empirica-systeme, Engel & Völkers Residential
Project: FORM3 | AM TACHELES, Developer: pwr development GmbH
SPECIALIST TOPIC
New construction as a capital investment
Equipped with modern fixtures and finishes; popular among tenants and with a high potential
for appreciation, newly constructed properties represent an excellent capital investment.
New-build apartments and refurbishment properties are Appreciation: Prices quoted for freehold
more expensive than existing apartments and, in addition apartments completed in 2013
to this, often generate a lower initial yield. They are,
8,000
nevertheless, a particularly attractive proposition for
7,465
capital investors pursuing a mid- or long-term investment 6,973
6,500
strategy. The initial maintenance costs for new-build 6,215
in euros/m 2
5,802
apartments are considerably lower and, parallel to this, 5,661
5,000
higher rents can be achieved and are not subject to any 4,923 5,040 4,700
4,275 4,178 4,359
political restrictions. The architectural style and fixtures 3,500 3,637
3,884
and finishes used for new construction projects reflect 3,247 3,439
3,006
current trends and also meet the latest technical stand- 2,000
2013 2014 2015 2016 2017 2018 2019 2020
ards. This is a particular driver for demand. Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2
1st-tier cities Germany
Source: empirica-systeme, Engel & Völkers Residential
New-build apartments not only offer good yields but also
great potential for appreciation. The appreciation rate for
new-builds in recent years has been extremely positive.
On average, the current sale price for an apartment which
was purchased as a new-build in Germany in 2013 has
risen by 52 percent since purchase despite the fact that
seven years have passed. A review of prices in the seven
1st-tier cities indicates that appreciation is even as high
as 70 percent. A good new-build or refurbishment prop-
erty in an up-and-coming location in an expanding district
can easily be sold on and is thus also an option for inves-
tors focusing on security. When assessing the micro-loca-
tion of such properties it is, however, import to investi-
gate the district’s development in detail. New construc-
tion projects and good connections to the rest of the city
can transform areas which were previously less popular
into the next ‘hot’ neighbourhoods. In some cases entire
new districts are created within the scope of large-scale
projects. The corresponding apartments make suitable
mid- to long-term capital investments thanks to the
modern infrastructure in the surrounding residential area.
Our experienced local Engel & Völkers property consult-
ants will be happy to help you identify the right property
for you.
Specialist Topic New developments market report 2020 9
BERLIN
3,769,495 22,180 euros 0.8% 15.4% 14.97 euros/m²
Population Per capita purchasing power Vacancy rate Home ownership rate Rents quoted for new-builds
+ 5.8% (over 2014) 92.4 (purchasing power index) 27.6 (vacancy rate index) 35.1 (index) + 4.7% (over 1st half of 2019)
Sources: Municipal resident register, Nexiga, CBRE-empirica vacancy rate index, empirica regio, Federal and State Statistical Offices, empirica-systeme
New-build transactions for freehold apt. Prices quoted for new-build freehold apt.
3,000 5,827 6,000 6,500
5,530 6,633
5,181 6,341
2,152
4,800 6,001
1,954
2,400 4,206
3,920 5,500
in million euros
5,446
in euros/m 2
1,800 3.600
1,965
Number
1,863
1,805
4,500 4,713
1,200 2,400 4,277
3,500
600 1,200
0 0 2,500
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2020
Q2 Q2 Q2 Q2 Q2 Q2
Transaction volumes Number of transactions Price quoted (new-build)
Source: Berlin Committee of Valuation Experts, Engel & Völkers Residential Source: empirica-systeme, Engel & Völkers Residential
Prices quoted for new-build freehold apartments
Number of Price quoted
Districts new-build apartments offered 2019 in euros/m² (over 2018)
Weißensee 530 5,135 (+ 7.5%)
Charlottenburg 465 8,296 (+ 5.2%)
Pankow 325 5,454 (+ 3.9%)
Friedrichshain 305 7,053 (+ 9.8%)
Mitte 303 8,366 (+ 10.3%)
Neukölln 222 6,206 (+ 3.6%)
Wilmersdorf 215 7,728 (+ 11.0%)
Tiergarten 189 7,400 (+ 9.3%)
Kreuzberg 168 7,442 (+ 5.8%)
Lichterfelde 124 6,210 (+ 6.5%)
Schöneberg 122 6,700 (– 4.0%)
Schmargendorf 120 7,809 (+ 10.2%)
Source: empirica-system, Engel & Völkers Residential
10 Berlin New developments market report 2020Residential real estate market locations
Prime location Good location Average location Basic location Commercial/Industrial area
Waters Green area
© Engel & Völkers Residential
A111
A11
Frohnau
Hermsdorf
Waidmannslust
Heiligensee Pankow A114
Weißensee
Hohenschönhausen
Reinickendorf
Wedding A10
Prenzlauer Berg Marzahn
Spandau
Hellersdorf
Mitte
Charlotten- Friedrichshain Lichtenberg
Westend burg Tiergarten
Kreuzberg
Wilmersdorf Schöneberg
Grunewald Neukölln
EL
SPREE Friedrichshagen
HAV
A115 Treptow
Kladow Steglitz
Köpenick
Lichterfelde Tempelhof Adlershof
A113
Zehlendorf Rudow
Müggelheim
Lichtenrade
A117
Prices by location for new development apartments
2018 2019 2020 Forecast
Price in euros/m2 6,300 – 18,700 6,900 – 19,500 7,500 – 22,000
5,400 – 8,500 5,700 – 9,200 6,100 – 9,900
4,100 – 6,900 4,500 – 7,600 4,900 – 8,200
3,700 – 4,700 3,900 – 5,500 4,300 – 5,700
Source: Engel & Völkers Residential
Construction activity Completed residential projects
30,000 300 1,240 1,300
1,143 1,174
25,052 1,088
24,743 24,218
25,000 240 1,040
207
205
22,365 22,524 915 874
842
19,199 18,999 732
160
in ’000 m 2
20,000 180 711 780
149
Number
Number
148
144
16,706
170
15,669
102
13,659
136
15,000 120 520
10,722
10,000 8,744 60 260
5,000 0 0
2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019202020212022
Completed projects Living space
Completed apartments Approved apartments / Expected/Under construction
Source: empirica-regio, Destatis, Engel & Völkers Residential Source: bulwiengesa, Engel & Völkers Residential Current as of: 31.05.2020
Berlin New developments market report 2020 11Interview with a local expert
Hendrik Treff impacted owners of existing apartments and have even
Engel & Völkers New Developments
Berlin led to greater demand for new-build properties.
Which districts are new residential projects currently
focusing on? Which districts could become a focus?
How is Berlin’s market for residential projects cur- The focus is on Pankow and Neukölln in particular, with
rently developing? numerous properties on offer, in turn resulting in a price
Construction activity is key for the Berlin market. The slowdown. At the moment many newly constructed proper-
volume of approved and completed apartments is now ties are available or planned in these areas. In the last three
high and stable, however is still insufficient to satisfy the to four years Spandau has also become a hot spot, with
strong demand for housing. This is intensified by the large-scale waterside developments, as previously the case
increased number of forward deals. Despite the introduc- in Köpenick. Looking forward Tempelhof could also attract
tion of Berlin’s rent cap numerous building projects are attention. Up until now there has been little activity. Good
still being planned since rents for new-build apartments transport connections, both by car and using public trans-
are not affected by the cap. Overall, demand outstrips sup-
ply in the market, whereby the most recent resulting rises
in prices have not been as marked as in previous years. Number of rooms
(New-build apartment offering)
What special characteristics does the Berlin market
100
have? How does it differ from other markets?
11
11
8
13
13
Berlin’s market differs from other 1st-tier cities in a number
24
23
26
75
24
24
of ways. Prior to 2010 the market for newly constructed
freehold apartments appeared to be completely dormant,
in %
31
28
50
31
34
35
while in the period up to 2017 prices lagged behind the
other Top cities. Following this there was a ‘catch up’ 25
30
30
26
25
effect as many investors turned their attention to Berlin.
24
As a result of the low initial price level the rise in prices 3 4 5 8
7
0
2015 2016 2017 2018 2019
was particularly pronounced. These increases were often
viewed as unhealthy, however I see them as part of a 1 room 2 rooms 3 rooms 4 rooms > 4 rooms
Source: empirica-systeme, Engel & Völkers Residential
dynamic catch-up process. In the meantime prices are also
high in Berlin although very few other cities have such
large discrepancies in purchase prices within individual
districts. Low-rent apartments are still available even in
prime central locations.
In addition to the city’s polycentric structure a contribut-
ing fact is that the individual districts are very mixed.
Berlin is extremely fragmented, so every property has to
be considered in terms of its micro-location. Rapid changes
in the market are another peculiarity. Sub-markets can
explode, developing from ‘scruffy dumps’ into established
locations at lightning speed. Neukölln’s development
since 2014 is a good example of this. The rent cap as
introduced in Berlin is currently unique in Germany.
Present market conditions have, however, primarily Project: VERT | AM TACHELES, Developer: pwr development GmbH
12 Berlin New developments market report 2020Completed residential projects by living space
Living space in completed
Buch new construction projects
A111 2017-05.2020 by postcode
Frohnau
A11
Blankenfelde Karow ≤ 5,000 m2
Hermsdorf Lübars Französisch Buchholz
Heiligensee 5,001 – 10,000 m2
A114
Märkisches Viertel
Blankenburg A10
Rosenthal Wartenberg 10,001 – 25,000 m2
Wittenau
Niederschönhausen
Borsigwalde Wilhelmsruh Malchow
Konradshöhe 25,001 – 50,000 m2
Heinersdorf Falkenberg
Tegel Reinickendorf Malchow
Pankow ≥ 50,001 m2
Hakenfelde Hohenschönhausen
Weißensee
Wedding Gesundbrunnen Marzahn
Falkenhagener Feld Hellersdorf
Prenzlauer Berg
Haselhorst Charlottenburg-Nord
Spandau Moabit Lichtenberg
Staaken
Mitte Biesdorf Mahlsdorf
Charlottenburg Friedrichshain
Westend Tiergarten Friedrichsfelde Kaulsdorf
Wilhelmstadt Rummelsburg
Kreuzberg
Halensee Alt-Treptow
Karlshorst
Grunewald WilmersdorfSchöneberg Neukölln Plänterwald
Gatow
Schmargendorf
Friedenau Oberschöneweide
Tempelhof Baumschulenweg
Köpenick
A115 Niederschöneweide Friedrichshagen
Dahlem Steglitz Rahnsdorf
Kladow Britz Johannisthal
Adlershof Wilhelmshagen
Mariendorf A113
HAVEL Lichterfelde Hessenwinkel
Zehlendorf Lankwitz Gropiusstadt
Grünau Müggelheim
Nikolassee Buckow Rudow Altglienicke
Wannsee Marienfelde
Bohnsdorf
Lichtenrade
A117
Schmöckwitz
Source: bulwiengesa, Engel & Völkers Residential
port, and the local leisure amenities at Tempelhofer Feld rently the interesting ones. Developers’ plans clearly
park are all big plus points for the district. Its shopping show that they are focusing on compact, efficient own-
areas are also undergoing a transformation and the district er-occupied apartments (e. g. smaller 4-room apart-
has old industrial premises which could be exploited. In ments). Sustainability is another important trend, with
addition to this Reinickendorf could become a focus of sustainable building materials and energy-efficient hous-
attention thanks to its ‘sandwich location’ between Wed- ing in increasing demand. Also, as the number of car
ding, which is close to the city centre, and the good loca- users drops, fewer parking spaces are required.
tions in Hermsdorf and Waidmannslust. The neighbouring
districts are established residential areas and following the How will the city and the market develop in future?
airport’s closure it would be possible to link up Reini Will Berlin be able to continue its success story in the
ckendorf with them. Peripheral green locations are also in coming years?
strong demand. Falkensee is a prime example of the numerous Berlin’s residential market is robust and will be able to
towns which border Berlin and have great transport links. continue its success story. All segments have remained
stable despite corona, while the overall situation with
What are the current trends in new construction businesses relocating to the city and an inflow of resi-
projects? Which types of apartment are being built dents from Germany and abroad clearly demonstrates
most often? that demand for new-build housing will remain strong. In
There is a clear trend to small apartments for singles or this context, Germany’s capital city is not dependent on
students. As the table shows, there has been a marked specific industries or sectors. Digitisation is also playing
decline in the number of apartments with three or more a major role in this trend, with many companies setting
rooms – the typical owner-occupier segment. This could, up innovative branches in Berlin. Dynamism and flexibil-
however, change again and, as a result, the low rate of ity will become increasingly important factors which pos-
ownership could rise. Owner-occupier locations are cur- itively influence the residential market.
Berlin New developments market report 2020 13COLOGNE
1,085,765 25,684 euros 0.9% 26.5% 13.05 euros/m²
Population Per capita purchasing power Vacancy rate Home ownership rate Rents quoted for new-builds
+ 3.9% (over 2014) 105.9 (purchasing power index) 32.4 (vacancy rate index) 60.6 (index) + 0.9% (over 1st half of 2019)
Sources: Municipal resident register, Nexiga, CBRE-empirica vacancy rate index, empirica regio, Federal and State Statistical Offices, empirica-systeme
New-build transactions for freehold apt. Prices quoted for new-build freehold apt.
1,000 1,625 1,700 6,000
5,612
800 1,275 1,360 5,267
5,000
634
in million euros
997 4,910
in euros/m 2
600 1,020 4,620
Number
494
4,000 4,099 4,331
389
400 540 533 680
3,000
267
200 340
252
0 0 2,000
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2020
Q2 Q2 Q2 Q2 Q2 Q2
Transaction volumes Number of transactions Price quoted (new-build)
Source: Cologne Committee of Valuation Experts, Engel & Völkers Residential Source: empirica-systeme, Engel & Völkers Residential
Prices quoted for new-build freehold apartments
Number of Price quoted
Districts new-build apartments offered 2019 in euros/m² (over 2018)
Lindenthal 114 5,894 (+ 1.1%)
Ehrenfeld 93 5,209 (+ 12.6%)
Nippes 74 4,894 (+ 2.4%)
Downtown 63 6,346 (+ 13.1%)
Rodenkirchen 61 5,455 (+ 2.2%)
Kalk 43 4,572 (+ 13.0%)
Porz 29 3,977 (+ 7.0%)
Mülheim 28 4,815 (+ 13.3%)
Chorweiler 15 3,402 (+ 4.0%)
Source: empirica-system, Engel & Völkers Residential
14 Cologne New developments market report 2020Residential real estate market locations
© Engel & Völkers Residential
Worringen
Roggendorf-
Thenhoven Blumenberg
Fühlingen
Chorweiler Merkenich
Volkhoven-
Weiler Seedorf
Esch-
Auweiler A57 Heimers-
dorf
Lindweiler Flittard Dünnwald
Pesch Longerich Niehl
Bocklemünd- Ossen- Weidenpesch Stammheim Höhenhaus
dorf
Mengenich Mauenheim
Bilderstöckchen Dellbrück
Vogelsang A3
Nippes Mülheim
Widdersdorf Bickendorf Neu- Riehl Holweide
A1 ehrenfeld
Buchheim
Neustadt-Nord
Lövenich Müngers- Ehrenfeld Buchforst Merheim
dorf Altstadt-Nord
Weiden Kalk Höhenberg Brück
Braunsfeld
Deutz Neubrück
Altstadt-Süd Vingst
Lindenthal Humboldt- Ostheim Rath- Prime location
Junkers-
Neustadt-Süd Gremberg Heumar
dorf
Sülz Poll
Raderberg Good location
Gremberghoven
Klettenberg West-
Marienburg hoven
A4 Ensen Eil Average location
RHEIN Finkenberg
Raderthal
Rodenkirchen Basic location
Porz Urbach
Weiß
Rondorf
Hahnwald Grengel
Elsdorf Commercial/Industrial area
Meschenich Zündorf Wahnheide
A555
Immendorf Sürth Wahn A59
Godorf Waters
Langel Lind
Libur
Green area
Prices by location for new development apartments
2018 2019 2020 Forecast
Price in euros/m2 5,100 – 6,650 6,050 – 7,500 6,750 – 8,500
4,450 – 5,350 5,100 – 5,850 5,550 – 6,600
3,700 – 4,500 4,100 – 4,950 4,750 – 5,750
3,350 – 3,800 3,450 – 4,250 3,800 – 4,600
Source: Engel & Völkers Residential
Construction activity Completed residential projects
293
4,500 100 272 300
4,128 4,130
3,931
234 232 226
3,653 240
3,750 3,824 75 208 199
170 171
in ’000 m 2
3,564 180
Number
Number
50
46
3,269 50
44
3,000 2,565
42
3,099
41
2,657
38
45
120
34
30
2,250 25
2,208 2,253 60
1,500 0 0
2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019202020212022
Completed projects Living space
Completed apartments Approved apartments / Expected/Under construction
Source: empirica-regio, Destatis, Engel & Völkers Residential Source: bulwiengesa, Engel & Völkers Residential Current as of: 31.05.2020
Cologne New developments market report 2020 15Interview with a local expert
Linda Ostendorf What special characteristics does the Cologne market
Engel & Völkers New Developments
Cologne have? How does it differ from other markets?
A number of large urban development projects are cur-
rently at the planning stage in Cologne. They include the
port area in Deutz; the Waldviertel district in Rodenkirchen
How is Cologne’s market for residential projects cur- and the Rondorf Northwest, Parkstadt South, Kreuzfeld
rently developing? and Roggendorf/ Thenhoven districts. New residential dis-
Building plots are scarce in Cologne and this restricts the tricts with housing for between 1,000 and 3,000 people are
market. A number of small and medium-size projects being created in these locations. In addition to this, new
including between four and ten residential units are cur- infrastructure such as schools, childcare centres, roads and
rently underway in the city centre, where vacant sites and public transport links is also being developed.
possibilities to add extra storeys mean that new projects
are always being developed. Larger urban development Which districts are new residential projects currently
projects are taking place outside the city centre on both focusing on? Which districts could become a focus?
the left and right banks of the Rhine. Current projects are focusing on the districts on the right
bank of the Rhine (known as Schäl Sick), particularly on
Deutz and Mülheim as well as Porz. Kalk also offers a
Number of rooms
(New-build apartment offering) number of development opportunities thanks to the avail-
ability of building plots, while Ehrenfeld has numerous
100 old commercial premises which are being revitalised,
11
9
8
12
15
such as the old railway freight yard or the former Max
26
23
27
29
75 Becker Recycling site. In Rodenkirchen the focus is on the
23
Ringviertel and Waldviertel districts.
in %
50
39
34
39
38
37
What are the current trends in new construction
25
projects? Which types of apartment are being built
23
24
22
26
24
2 3 6 3 1 most often?
0
2015 2016 2017 2018 2019 Mixed-use districts which combine living, leisure and
1 room 2 rooms 3 rooms 4 rooms > 4 rooms
work are a big trend at the moment. Mobility concepts are
Source: empirica-systeme, Engel & Völkers Residential also becoming more common. Fast charging stations forCompleted residential projects by living space
Living space in completed
new construction projects
Worringen
2017-05.2020 by postcode
Roggendorf/Thenhoven
Blumenberg ≤ 5,000 m2
Merkenich
Fühlingen
Chorweiler 5,001 – 10,000 m2
Volkhoven/Weiler A1
Seeberg 10,001 – 25,000 m2
A57
Heimersdorf A3
Esch/Auweiler 25,001 – 50,000 m2
Lindweiler Flittard Dünnwald
Pesch Longerich Niehl
≥ 50,001 m2
Stammheim
Weidenpesch Höhenhaus
Ossendorf
Bocklemünd/Mengenich Mauenheim
Dellbrück
Bilderstöckchen
Widdersdorf Mülheim Holweide
Nippes Riehl
Vogelsang Bickendorf Buchheim
Neuehrenfeld
Neustadt-Nord Buchforst Merheim
Lövenich Ehrenfeld
Müngersdorf Altstadt-Nord Höhenberg Brück
Kalk
Braunsfeld
Weiden Deutz Vingst Neubrück
Junkersdorf Altstadt-Süd Rath/Heumar
Lindenthal Ostheim
Neustadt-Süd Humboldt/Gremberg
Sülz Raderberg Poll
Gremberghoven
Bayenthal
Klettenberg Westhoven Ensen Eil
Zollstock Marienburg
A4 Finkenberg
RHEIN
Raderthal A59
Rodenkirchen
Weiß Porz Urbach
Rondorf
Hahnwald Elsdorf Grengel
A555 Sürth Zündorf Wahnheide
Meschenich Wahn
Godorf
Immendorf Langel Lind
Libur
Source: bulwiengesa, Engel & Völkers Residential
e-mobility can, for example be installed on request, how-
ever are not yet viewed as standard amenities. The city
council is primarily focusing on family-friendly projects.
Over and above this, an increasing number of furnished
micro-apartments are being built as are high-price apart-
ments with luxury fixtures and finishes.
How will the city and the market develop in future?
The potential for growth in Cologne is higher than in
other German metropolises. The market is stable. Inter-
national investors and prestige purchasers currently play
no major role in the market and there is potential for
expansion in this regard. Many purchasers are local to
the region, so international economic fluctuation has little
impact. All of these factors have contributed to the long-
term sustainable growth of Cologne’s property market.
What opportunities does Cologne’s new-build prop-
erty market offer?
In comparison to other major cities prices for new-build
properties are moderate. Purchase prices for building plots
are thus also comparatively lower despite excess demand,
resulting in a stable market situation with little volatility.
Cologne New developments market report 2020 17DÜSSELDORF
642,304 28,528 euros 1.4% 23.2% 13.97 euros/m²
Population Per capita purchasing power Vacancy rate Home ownership rate Rents quoted for new-builds
+ 4.7% (over 2014) 117.7 (purchasing power index) 49.4 (vacancy rate index) 52.9 (index) + 3.0% (over 1st half of 2019)
Sources: Municipal resident register, Nexiga, CBRE-empirica vacancy rate index, empirica regio, Federal and State Statistical Offices, empirica-systeme
New-build transactions for freehold apt. Prices quoted for new-build freehold apt.
600 860 827 900 8,000
7,298
439
480 720
7,000
468
6,574
in million euros
546
in euros/m 2
360 502 540
Number
461
354
6,000
319
240 360
5,655
253
5,501
4,856
5,000 5,075
120 180
0 0 4,000
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2020
Q2 Q2 Q2 Q2 Q2 Q2
Transaction volumes Number of transactions Price quoted (new-build)
Source: Düsseldorf Committee of Valuation Experts, Engel & Völkers Residential Source: empirica-systeme, Engel & Völkers Residential
Prices quoted for new-build freehold apartments
Number of Price quoted
Districts new-build apartments offered 2019 in euros/m² (over 2018)
Flingern Nord 74 5,542 (+ 11.7%)
Düsseltal 41 7,734 (+ 16.7%)
Oberkassel 40 8,605 (+ 22.9%)
Benrath 22 6,211 (+ 42.3%)
Bilk 21 6,161 (+ 53.1%)
Friedrichstadt 21 7,839 (+ 11.1%)
Pempelfort 20 6,880 (+ 4.7%)
Wersten 15 4,723 ( N/A )
Heerdt 14 6,025 (+ 9.7%)
Mörsenbroich 14 5,168 ( N/A )
Rath 11 4,708 ( N/A )
Source: empirica-system, Engel & Völkers Residential
18 Düsseldorf New developments market report 2020Residential real estate market locations
A524
© Engel & Völkers Residential
Wittlaer
Angermund
Kaisers- Kalkum
werth
Lichten-
A44 broich A44
Lohausen
Unterrath A52
Stockum Rath
A57 Meerbusch
RH Mörsen-
EIN Golz- broich
heim Ludenberg
Lörick Derendorf Hubbelrath
Nieder- Grafen-
kassel Pempelfort
A52
Heerdt Düsseltal berg
Oberkassel Alt- A3
stadt Stadt- Flingern-Nord Gerresheim
mitte Flingern-
Hafen Carl-
Süd
stadt Lierenfeld
Unterbilk Oberbilk Vennhausen Prime location
Hamm Bilk Eller Unterbach
Good location
Volmers- Flehe
Wersten
A46
werth Average location
Hassels
Reisholz
A46 Holthausen Basic location
A59
Itter Benrath
Commercial/Industrial area
Himmel-
geist
Waters
Garath
Urdenbach
Green area
Hellerhof
Prices by location for new development apartments
2018 2019 2020 Forecast
Price in euros/m2 8,000 – 14,000 9,000 – 14,500 9,500 – 15,000
6,500 – 8,500 7,000 – 9,000 7,500 – 9,500
3,500 – 7,000 4,300 – 7,500 5,000 – 8,000
2,500 – 4,000 2,800 – 4,500 3,000 – 4,000
Source: Engel & Völkers Residential
Construction activity Completed residential projects
5,000 4,659 100 272 300
258
4,175
213 240
4,000 3,753 75
171 176
in ’000 m 2
55
3,028 180
Number
Number
53
2,911 145 142 155
3,000 50
104
2,813 120
34
30
2,612 2,575
25
25
1,453
22
22
2,000 2,373 2,315 25
18
60
1,136 0 0
1,000
2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019202020212022
Completed projects Living space
Completed apartments Approved apartments / Expected/Under construction
Source: empirica-regio, Destatis, Engel & Völkers Residential Source: bulwiengesa, Engel & Völkers Residential Current as of: 31.05.2020
Düsseldorf New developments market report 2020 19Interview with a local expert
Birgit Pfeiffer ished before new projects can be realised. As a result the
Engel & Völkers New Developments
Düsseldorf construction of social housing is often not possible, while
submarkets with stylish, usually premium, newly con-
structed properties are correspondingly more attractive.
Parallel to this, there is a growing trend for the con
How is Düsseldorf’s market for residential projects version of existing spaces, for example the repurposing
currently developing? of primarily industrial areas into residential ones by
North Rhine-Westphalia’s capital is one of Germany’s demolishing factories and upgrading the vacant plots
most popular places to live. Demand, particularly in the this creates by building modern apartments.
medium and low price segment, is strong and sustained.
Following the easing of the restrictions implemented Which districts are new residential projects currently
during the corona pandemic the market in NRW has focusing on? Which districts could become a focus?
continued to develop very positively. Interest in many There continues to be a strong demand for locations in
newly constructed properties is high, however potential direct proximity to the Rhine, for example in Oberkassel,
purchasers expect price discounts. These expectations Pempelfort and Golzheim. Overall developers are currently
are the result of lenders’ restrictive policies. In addition focusing on many areas in Düsseldorf. In recent years, a
to this, potential purchasers are unwilling to recognise large volume of new housing has been constructed in
the enormous increases in construction costs and pur- Heerd and Flingern in particular. Peripheral locations
chase prices for building plots which project developers are popular at present since prices for building land are
and building companies have experienced in recent lower. Purchase prices for property can also be lower in
years and are reluctant to accept that large discounts are these areas. Going forward the focus could again shift to
not possible. other districts since there is a demand for housing
throughout the city.
What special characteristics does the Düsseldorf
market have? How does it differ from other markets? What are the current trends in new construction
Düsseldorf is ‘manageable’ in terms of size. Most of its projects? Which types of apartment are being built
districts have developed positively in terms of quality of most often?
life and housing stock. Vacant plots are, however, There is a continuing trend for new-builds with bespoke
extremely scarce and existing properties must be demol- architecture, while large single-level apartments are also
Number of rooms
(New-build apartment offering)
100
10
11
13
13
17
75
31
29
32
33
32
in %
50
35
36
33
40
37
25
19
20
18
13
13
0 1 3 5 4 3
2015 2016 2017 2018 2019
1 room 2 rooms 3 rooms 4 rooms > 4 rooms
Source: empirica-systeme, Engel & Völkers Residential
20 Düsseldorf New developments market report 2020Completed residential projects by living space
Living space in completed
A524 new construction projects
2017-05.2020 by postcode
Wittlaer ≤ 5,000 m2
Angermund
5,001 – 10,000 m2
Kalkum 10,001 – 25,000 m2
Kaisers- A52
werth 25,001 – 50,000 m2
Lichten-
A44 broich ≥ 50,001 m2
A44
Lohausen
Stockum Unterrath Rath
RH
A57 EIN
Golz- Mörsenbroich
heim Ludenberg
Lörick Derendorf Hubbelrath
Grafen-
Niederkassel Pempelfort berg
A52
Heerdt
Oberkassel Alt- Stadt- A3
Gerresheim
stadt mitte Flingern
Hafen Carlstadt (-Nord/-Süd)
Friedrichstadt Lierenfeld
Unterbilk Vennhausen
Hamm Oberbilk Unterbach
Bilk Eller
Flehe
Volmerswerth A46
Wersten
Reisholz Hassels
A46 Holthausen
Itter Benrath
Himmel- A59
geist
Garath
Urdenbach
Hellerhof
Source: bulwiengesa, Engel & Völkers Residential
in demand. Underground parking garage spaces and having a home, in other words a safe harbour, even in
lifts are both a must. Overall, classic layouts with good turbulent times. Simultaneously it is also an investment
room proportions are always in high demand. Another for the future which could even appreciate in value.
trend is for living in high-rise buildings on the banks of Overall we expect very positive development. It can be
the Rhine. New vertical living projects are catering for assumed that prices in prime locations will continue to
buyers seeking an individualised but urban lifestyle rise while they remain stable in good locations. Average
instead of uniformity. The economical use of limited and basic locations may experience slight decreases
resources is also a hot topic, as demonstrated by the due to the impact of the corona pandemic.
construction of solar housing developments and passive
houses. The state plans to end the financial support it has
given during corona. How is the market reacting to
How will the city and the market develop in future? this?
Demand for high-quality housing in this lifestyle and I believe that the market will develop positively after
fashion city continues to be strong, with prices for new- the pandemic and that prices in prime locations and
build freehold apartments the highest in North Rhine- possibly also in good locations could continue to rise.
Westphalia and on a par with Hamburg or Stuttgart. The Should there be a second wave of infections and financial
highest square metre price achieved for a new-build free- support from the state be exhausted, then prices may,
hold apartment in 2019 was 18,700 euros. At present however, fall. Current circumstances make it impossi-
properties in good locations which can hold their value ble to reliably forecast possible market development in
and have the potential for appreciation are attracting the this regard.
most attention. Owning your own property equates to
Düsseldorf New developments market report 2020 21FRANKFURT
758,574 27,055 euros 0.3% 19.4% 16.52 euros/m²
Population Per capita purchasing power Vacancy rate Home ownership rate Rents quoted for new-builds
+ 7.1% (over 2014) 111.6 (purchasing power index) 11.8 (vacancy rate index) 44.2 (index) + 1.2% (over 1st half of 2019)
Sources: Municipal resident register, Nexiga, CBRE-empirica vacancy rate index, empirica regio, Federal and State Statistical Offices, empirica-systeme
New-build transactions for freehold apt. Prices quoted for new-build freehold apt.
1,500 1,839 2,000 8,000
7,796
1,548 1,606
1,200 1,600 7,391
7,000
in million euros
1,180
in euros/m 2
799
770
900 1,200 6,552
Number
675
911 6,000
586
600 800 5,732
4,991
4,833
502
5,000
300 400
0 0 4,000
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2020
Q2 Q2 Q2 Q2 Q2 Q2
Transaction volumes Number of transactions Price quoted (new-build)
Source: Frankfurt Committee of Valuation Experts, Engel & Völkers Residential Source: empirica-systeme, Engel & Völkers Residential
Prices quoted for new-build freehold apartments
Number of Price quoted
Districts new-build apartments offered 2019 in euros/m² (over 2018)
Gallus 230 8,118 (+ 2.6%)
Ostend 99 8,060 (+ 4.8%)
Kalbach-Riedberg 94 6,748 (+ 22.8%)
Niederrad 73 5,852 (+ 2.5%)
Bockenheim 66 7,700 (+ 24.8%)
Nordend-West 62 9,394 (+ 0.2%)
Seckbach 45 6,504 (+ 14.5%)
Rödelheim 31 6,336 (+ 7.3%)
Sachsenhausen-Nord 29 7,032 (+ 6.1%)
Westend-Süd 28 11,067 (+ 17.9%)
Bergen-Enkheim 24 6,175 (+ 6.6%)
Höchst 22 5,324 (– 10.0%)
Source: empirica-system, Engel & Völkers Residential
22 Frankfurt New developments market report 2020Residential real estate market locations
© Engel & Völkers Residential
Nieder-Erlenbach
Nieder-Eschbach
Kalbach- Harheim
Riedberg Frankfurter Berg
Bonames
Berkersheim
Niederursel
Heddern-
heim
Eschers- Bergen-Enkheim
Preunges-
heim
Ecken- heim
Dichter- heim
Praunheim Seckbach
Ginnheim Dorn-
busch A66
viertel
Hausen Holzhausenviertel
A661
MAIN
Diplomaten- Born-
Rödelheim Westend Nordend Rieder-
viertel heim
Nord West Ost wald Fechen-
A5
Bockenheim heim
Westend Innenstadt Ostend
Sossenheim Süd
A648 Alt-
Bahnhofs- stadt
Unterliederbach viertel
Europaviertel Prime location
Höchst Nied Sachsenhausen
Gallusviertel tel
Zeilsheim i e r a f en Nord Oberrad
tv sth
Griesheim tleu
A66
Gu We Sachsenhausen
Good location
Mummscher Süd
Niederrad Park Average location
Sindlingen
Schwanheim Lerchesberg
Basic location
Commercial/Industrial area
A3
Waters
Flughafen
Green area
Prices by location for new development apartments
2018 2019 2020 Forecast
Price in euros/m2 9,500 – 15,000 10,000 – 16,000 10,600 – 16,500
7,500 – 10,000 7,900 – 10,500 8,200 – 11,200
5,500 – 7,800 5,800 – 8,000 5,900 – 8,300
4,000 – 6,200 4,200 – 6,500 4,300 – 6,700
Source: Engel & Völkers Residential
Construction activity Completed residential projects
8,000 100 500
7,329 434
80 363 400
69
6,500 5,872 339
80
5,580 312 323
287
in ’000 m 2
5,138 60 282 300
Number
Number
52
5,829
4,681 223
58
5,000 267
51
52
50
5,122
46
5,641 40 200
4,418 4,325 4,273
34
3,500 3,761 20 100
2,000 0 0
2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019202020212022
Completed projects Living space
Completed apartments Approved apartments / Expected/Under construction
Source: empirica-regio, Destatis, Engel & Völkers Residential Source: bulwiengesa, Engel & Völkers Residential Current as of: 31.05.2020
Frankfurt New developments market report 2020 23Interview with a local expert
David Schmitt to this demand by building micro-apartments.
Engel & Völkers New Developments
Frankfurt
What special characteristics does the Frankfurt
market have? How does it differ from other markets?
There has been a significant rise in the number of house-
How is Frankfurt’s market for residential projects holds in Frankfurt due to more single-person households
currently developing? and commuter apartments, while increasing property
Construction activity in Frankfurt is still ongoing, with a prices are forcing middle class families out of central
large offering in the premium sector currently available locations to the periphery. People who want to live in cen-
and in the vertical living segment in particular. Demand is tral Frankfurt are choosing apartments which are smaller
strong in the medium-price segment, whereby supply is but still offer comfort and have generous room sizes. In
insufficient to meet it. Plots and properties which can be addition to this, the city is very international, which influ-
developed are scarce, as are opportunities for densifica- ences product development factors such as layouts (open
tion. In Frankfurt there is a trend for construction projects concept), fixtures and finishes (premium communal areas)
to move away from large apartments and instead focus on and the range of services on offer. A lack of building plots
medium-size to small residential units. The inflow of for- and properties which are suitable for development in
eign residents is also generating additional demand, in Frankfurt is driving the vertical living concept. The High-
turn increasing expectations regarding quality and com- Rise Buildings Framework Plan permits construction of
fort, also for small apartments. Developers often respond such buildings in 16 locations. Since purely residential
Completed residential projects by living space
Living space in completed
Nieder-Erlenbach
new construction projects
2017-05.2020 by postcode Nieder-Eschbach
≤ 5,000 m2
Kalbach Riedberg Harheim
Bonames
5,001 – 10,000 m2
10,001 – 25,000 m2
Frankfurter Berg Berkersheim
25,001 – 50,000 m2 Niederursel
≥ 50,001 m2 HeddernheimEschersheim Preungesheim
Bergen-Enkheim
Eckenheim
Praunheim Seckbach
Ginnheim Dornbusch A66
Hausen A661
Rödelheim Nordend
BornheimRiederwald Fechenheim
A5
Sossenheim Bockenheim Westend
A648 Innenstadt Ostend
Unterliederbach Altstadt
Bahnhofsviertel
Nied Gallusviertel Sachsenhausen Nord
Höchst Oberrad
A66 Zeilsheim Griesheim Gutleutviertel
MAIN
Niederrad
Sindlingen Schwanheim
Sachsenhausen Süd
Flughafen A3
Source: bulwiengesa, Engel & Völkers Residential
24 Frankfurt New developments market report 2020Number of rooms
(New-build apartment offering)
100
10
10
11
12
8
24
22
75
28
27
34
in %
35
50
37
33
34
29
25
24
24
24
22
22
4 4 5
9
7
0
2015 2016 2017 2018 2019
1 room 2 rooms 3 rooms 4 rooms > 4 rooms
Source: empirica-systeme, Engel & Völkers Residential Project: ONE FORTY WEST, Source: Commerz Real AG
high-rise buildings can no longer be taken into considera this concept are making a conscious decision to buy
tion when making accounting adjustments there is a new smaller apartments which is, however, offset by the extra
trend for hybrid use and the combination of offices, resi- comfort of additional amenities such a concierge and
dential units and, in some cases, also hotels. services which are similar to those offered by hotels.
Over and above this, high-quality communal areas such
Which districts are new residential projects focusing as roof gardens, wine cellars, gyms, etc. expand the living
on? Which districts could become a focus? space available to residents, while guests can be accom-
The largest construction projects are currently the Hafen- modated in neighbouring hotels. The ONE FORTY WEST
park Quartier development in the Ostend district and the is an excellent example of this concept.
FOUR Frankfurt development in the city centre. The latter
includes plans to create new housing for 1,000 residents What makes the ONE FORTY WEST so special?
in 650 apartments by 2022. This residential development The ONE FORTY WEST is a 140-metre high building
of the area is contributing to the banking quarter’s trans- offering a comprehensive lifestyle concept which is unique
formation into a mixed-use area. The prevailing housing in Germany. It includes exclusive apartments with a 24/7
shortage and consequent price development are also concierge service; a wine cellar; restaurants; a sky bar
causing construction companies to turn their attention to and a dog washing area. The amenities are on a par with
peripheral areas such as Rödelheim, Griesheim and Nied, a 4-star plus hotel. This innovative urban development
with a focus on projects aimed at middle-class families. project is located in the area between Bockenheim and
Westend, offers unique panoramic views across the city. In
What are the current trends in new construction total there will be 187 premium apartments with balco-
projects? Which types of apartment are being built nies/sky lounges located on the 24th to the 40th floors.
most often? Everyone lives at the top – a unique residential concept!
In good locations developers are continuing to focus on
the premium segment, planning a mix of 2- and 3-room How will the city and the market develop in future?
apartments. Any large apartments created within the The number of small and medium-size residential units in
scope of new construction projects are primarily pent- good and prime locations will increase, while in average
houses, however not usually included in current plans and basic locations new apartments will have 3 rooms and
and development projects since there is presently a sur- be aimed at families. Frankfurt is expected to pass the
plus of property offerings priced in excess of 2 m. euros. 800,000 inhabitant mark by 2030. Demand for housing will
Purchase price strategy is thus becoming increasingly thus remain at a sustained high level. Despite the construc-
important – it must be as easy as possible for target tion boom and rising prices it is unlikely that the pressure
groups to finance purchase prices. The biggest trend in on residential property will relax and basic locations will
Frankfurt is, however, without a doubt the ‘vertical liv- also be in higher demand. The motivation of potential pur-
ing’ concept already mentioned. Purchasers who choose chasers is shifting towards maintaining and adding value.
Frankfurt New developments market report 2020 25HAMBURG
1,899,160 25,695 euros 0.5% 23.4% 14.86 euros/m²
Population Per capita purchasing power Vacancy rate Home ownership rate Rents quoted for new-builds
+ 5.3% (over 2014) 106.0 (purchasing power index) 17.4 (vacancy rate index) 53.4 (index) + 0.2% (over 1st half of 2019)
Sources: Municipal resident register, Nexiga, CBRE-empirica vacancy rate index, empirica regio, Federal and State Statistical Offices, empirica-systeme
New-build transactions for freehold apt. Prices quoted for new-build freehold apt.
7,000 6,994
1,500 2,500
2,193 2,171
1,968 1,960
1,200 2,000 5,843
1,664 6,000
in million euros
5,298 5,288
in euros/m 2
1,007
900 1,500
Number
966
959
4,968
894
870
5,000 4,538
600 1,000
4,000
300 500
0 0 3,000
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2020
Q2 Q2 Q2 Q2 Q2 Q2
Transaction volumes Number of transactions Price quoted (new-build)
Source: Hamburg Committee of Valuation Experts, Engel & Völkers Residential Source: empirica-systeme, Engel & Völkers Residential
Prices quoted for new-build freehold apartments
Number of Price quoted
Districts new-build apartments offered 2019 in euros/m² (over 2018)
Rahlstedt 192 4,528 (+ 4.4%)
Eidelstedt 105 4,543 (+ 4.0%)
Bahrenfeld 81 6,022 (+ 8.1%)
Lohbrügge 76 4,320 (+ 6.0%)
Othmarschen 74 8,789 (+ 18.3%)
Eilbek 72 6,407 (+ 11.8%)
Rissen 67 5,641 (+ 6.4%)
Schnelsen 61 4,623 (+ 4.3%)
Barmbek-Süd 57 6,575 (+ 8.8%)
Sasel 56 5,427 (+ 9.4%)
Wellingsbüttel 52 6,484 (+ 4.4%)
Niendorf 49 5,514 (+ 11.3%)
Source: empirica-system, Engel & Völkers Residential
26 Hamburg New developments market report 2020Residential real estate marketDuvenstedt
locationsWohldorf-Ohlstedt
Prime location Good location Average location Basic location Commercial/Industrial area
Lemsahl-Mellingstedt
Waters Green area
Bergstedt
A7
Poppenbüttel
© Engel & Völkers Residential
Langenhorn Volksdorf
Sasel
Hummelsbüttel
A23 Wellingsbüttel
Schnelsen
Fuhlsbüttel
Niendorf
Ohlsdorf
Bramfeld Rahlstedt
Eidelstedt Groß Borstel Alsterdorf Steilshoop Farmsen-Berne
A1
Lurup Lokstedt
Winterhude
Eppendorf Barmbek-Nord
Stellingen Tonndorf
Hoheluft Dulsberg
Rissen -Ost
-West Wandsbek
Sülldorf Harvestehude Barmbek-Süd
Iserbrook Eimsbüttel Jenfeld
Osdorf Bahrenfeld Rother- Uhlenhorst Eilbek
Altona baum Marienthal
Blankenese Groß Flottbek Nord Sternschanze Hohenfelde
St. Georg Hamm-Nord A24
Nienstedten Neustadt Borgfelde -Mitte Horn
ELBE Othmarschen St. Pauli
Ottensen
Altona Altstadt Hammerbrook -Süd Billstedt
Klostertor
HafenCity
Rothenburgsort
Cranz
Steinwerder
Kleiner Grasbrook Billbrook
Finkenwerder
Veddel
Waltershof
Neuenfelde Weltquartier Moorfleet
Altenwerder
Lohbrügge
Francop
Wilhelmsburg Billwerder
Tatenberg
Moorburg Bergedorf
Allermöhe
Spaden-
land
Hausbruch
A25
Neugraben-Fischbek
Heimfeld Reitbrook
Neuland
Harburg Ochsenwerder Curslack
Neuengamme
Eißendorf Gut Moor
Wilstorf Kirchwerder Altengamme
Marmstorf Rönneburg
Langenbek
Sinstorf
Prices by location for new development apartments
2018 2019 2020 Forecast
Price in euros/m2 10,000 – 20,000 12,000 – 22,000 13,000 – 23,000
7,500 – 10,000 9,000 – 12,000 10,000 – 13,000
5,000 – 7,500 6,000 – 9,000 7,000 – 10,000
3,500 – 5,000 4,000 – 6,000 4,500 – 7,000
Source: Engel & Völkers Residential
Construction activity Completed residential projects
12,465
12,500 200 670 700
11,632 612
11,087 562
10,923 525 509 560
11,000 10,736 150 487
119
431 423
in ’000 m 2
315 420
101
10,674
Number
Number
95
92
91
9,500 8,634 9,805 100
85
77
73
280
68
8,000 8,521 50
7,920 140
7,722
6,974 0
6,500 0
2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019202020212022
Completed projects Living space
Completed apartments Approved apartments / Expected/Under construction
Source: empirica-regio, Destatis, Engel & Völkers Residential Source: bulwiengesa, Engel & Völkers Residential Current as of: 31.05.2020
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