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 - Engel & Völkers
Market report Germany’s Top 7 cities · 2020
New Developments
Market report Germany's Top 7 cities 2020 New Developments - Engel & Völkers
Market report Germany's Top 7 cities 2020 New Developments - Engel & Völkers
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
Market report Germany's Top 7 cities 2020 New Developments - Engel & Völkers
An analysis of the Top 7 cities

                      Hamburg

                                            Berlin

   Düsseldorf

Cologne

                                            Munich

  Frankfurt am Main

                                Stuttgart
Market report Germany's Top 7 cities 2020 New Developments - Engel & Völkers
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
Market report Germany's Top 7 cities 2020 New Developments - Engel & Völkers
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
Market report Germany's Top 7 cities 2020 New Developments - Engel & Völkers
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
Market report Germany's Top 7 cities 2020 New Developments - Engel & Völkers
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
Market report Germany's Top 7 cities 2020 New Developments - Engel & Völkers
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
Market report Germany's Top 7 cities 2020 New Developments - Engel & Völkers
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 2020
Residential 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                                                           11
Interview 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 2020
Completed 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                              13
COLOGNE

                           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 2020
Residential 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                                                           15
Interview 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 for
Completed 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                     17
DÜSSELDORF

                            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 2020
Residential 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                                                            19
Interview 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 2020
Completed 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            21
FRANKFURT

                            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 2020
Residential 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                                                               23
Interview 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 2020
Number 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          25
HAMBURG

                           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 2020
Residential 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

                                                                                                                                                                 Hamburg New developments market report 2020                                                                                       27
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