Hamburg

The gate to the world

CITY PROFILE

  • With a population of 1.7 million residents the city and state Hamburg makes up Germany’s second largest city. Hamburg continues to grow due to offering attractive jobs by being a significant economic location in Germany. At the same time the shopping areas, restaurants, design scene and its location by the water add to its attractiveness.
  • Hamburg’s appeal can also be seen in the area of tourism. There is a steady rise in foreign and domestic tourists.
  • The Elb metropolis is also referred to as the “Gateway to the World”, because its port is Germany’s most important trading hub with other countries. The port city is Europe’s second largest international cargo handling location.
  • Hamburg is a highly recommended location for real estate investments due to being a safe growth market. 

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Population

  • Despite the general trend of demographic decline in many German cities, Hamburg’s population is increasing steadily. This development will continue as reported in the demographics concept by the city of Hamburg. For the year 2030 a population of 1.86 million people is prognosticated, which is an increase of approximately 7.5% compared to 2012.
  • At the same time, the trend of a highly diverse population structure will continue to prevail. The proportion of people with a migration background is likely to continue to rise.
  • In 2030, the average age in Hamburg will be 43 years, while the federal average will be 48.1 years. Thus, the Hanseatic City will remain young. This is supported by the fact that by 2025 the number of pupils in primary and secondary school will increase. However, there will also be a high number of people aged 80 and over in 2030.

Infrastructure

  • Logistics services are an important economic sector in Hamburg. Accordingly, the infrastructure is outstanding, including a long-distance road network that runs to the Hanseatic City, with around 80 kilometers of motorway within the city area, an international airport and a port with an annual turnover of around 140 million tonnes of goods.
  • Within the city there is a tight network of buses and metro lines. In addition, Hamburg is the most important railway hub in northern Europe.

Work / Economy

  • Hamburg is one of Germany’s most important economic locations and enjoys an excellent international reputation. The port of Hamburg, for example, is one of the 20 largest container ports in the world.
  • However, Hamburg is not only one of the most important logistics centres in Europe but also dominates in the fields of aerospace technology, information technology, biosciences and the consumer goods industry. The Hanseatic City is also a coveted location for media companies.
  • Due to a close exchange of knowledge with local universities, Hamburg reinforces its importance as a promising business location.

Education / Culture

  • Hamburg has 19 universities, which are in close contact with the local economy. At the same time, there is an excellent network of vocational, general and private schools. It should be noted that Hamburg is the only federal state in Germany where the education system is growing. Due to this, the city will receive an additional two billion euros until 2019 for redevelopment measures and new building developments of the education system.
  • Hamburg can be easily referred to as the culture capital of northern Germany. The Hanseatic City has more than 60 theatres, museums as well as 100 music venues. Approximately 10,000 independent artists revive the culture scene.
  • With about 2,383 theatre visits per 1,000 residents, the metropolis proves its position as a cultural city.
  • According to international surveys Hamburg offers four out of 100 attractions within Germany. These is the Hamburg port with its fish market, the lively Reeperbahn, the Alster as well as the historic Speicherstadt with the Miniatur Wunderland.

Leisure / Sports

  • Hamburg offers its residents a high recreational value. The North Sea with its healthy climate is reached after a short drive. In the metropolis itself, parks such as the Stadtpark, the Altona Volkspark and the Jenischpark offer relaxing moments.
  • The Hanseatic City and its surrounding areas offer nature lovers some wildlife parks. Hagenbeck’s Tierpark is a popular zoo with 210 animal species and is also known as a fence-free zoo. Germany’s largest Japanese Garden is located in the central park "Planten un Blomen".
  • Hamburg is also home to numerous sports clubs including the soccer clubs HSV and FC St. Pauli as well as the HSV handball club and the Basketball club Hamburg Towers.
  • With the Volkspark stadium, the Alsterschwimmhalle, the Barclaycard Arena and the Sporthalle Hamburg the metropolis offers several huge sports centres, which are regularly used for special concerts and events. The Millerntor stadium and the Jahnkampfbahn are also part of these.

BEST RESIDENTIAL LOCATIONS

  • Hamburg’s top residential areas are located by the water. They stretch from Othmarschen to Blankenese and are taken up very quickly despite the high price level, which is due to the good purchasing power of Hamburg’s residents.
  • Other sought-after areas include Eppendorf, Hoheluft-Ost and the Alsterland. Apartments in the Hafencity with the Elb-view are also among the top residential locations.
  • Due to an increasing demand for housing, neglected neighbourhoods are going through a gentrification process. The development of districts south of the Elbe, as well as Eissendorf, Ottensen, Eimsbüttel and Altona, are unmissable. Wellingsbüttel has also developed into an in-district. The same urban change could also occur in Lockstedt and St. Georg.

INVESTMENT FACTORS

  • Hamburg’s population increases steadily and the local economy also shows economic growth. The Hanseatic City continues to be one of Germany’s and North Europe’s most important cities, which is why the demand for housing space will further increase.
  • The close recreational locations and the diverse entertainment programme boost the appeal of the Hanseatic City. Due to this Hamburg is a sought-after location for both professionals as well as students.
  • For years Hamburg’s high demand for housing meets a continuously low vacancy rate: Since 2010 the vacancy rate has stagnated at 0.7 %.

PROGNOSIS

  • Hamburg is a highly sought-after location for real estate investments. In 2015 the turnover for housing property totalled € 880 million, which was a new record high.
  • Even though the rent and sales prices remain at a high level, one cannot expect a drop in prices. Experts anticipate a stagnation of the prices in the top residential locations while prices in the affordable neighbourhoods will rise continuously.
  • In order to meet the high demand for housing, there are numerous construction projects planned in the upcoming years. For example, 100 new flats will be built in Eppendorf and 2,000 flats will be built on Wilhelmsburger Reichsstraße. Despite these planned construction measures, the pressure on the real estate market is unlikely to decline significantly, which will result in good returns on real estate investments.

ASSESSMENT

Hamburg is one of Germany’s biggest cities and is one of the top locations for real estate investments. The expected increasing demand for residential space, the high purchasing power of the residents and the growing population make this market attractive and rewarding for capital investors.


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