Hamburg's real estate market 2025: rise despite the construction crisis and challenges!

Hamburg's real estate market 2025: rise despite the construction crisis and challenges!

Hamburg's real estate market is currently characterized by numerous challenges. Rising construction costs, stricter energy efficiency requirements and uncertainties caused by the interest rate turnaround are making it difficult for both owners and buyers to make well-founded investment decisions. Like that Hamburger Abendblatt reported, the demand for living space in central districts remains unbroken. The attractiveness of the surrounding area is further increased by hybrid working models and home offices, which is causing owners in Hamburg and the metropolitan region to question their real estate market value.

The company Amoreal supports owners, buyers, investors and property developers in this phase. Its comprehensive services range from professional market value determination to the creation of exposés to legally compliant contract processing. Amoreal attaches great importance to transparency and partnership-based cooperation and offers personal support from dedicated contacts.

Current trends in the real estate market

Despite the challenges, the Hamburg real estate market is proving to be an attractive investment destination in 2025. Loud Calvest Sales figures rose by 29 percent in 2024, with sales increasing by 34 percent. However, this positive market development is contradicted by a significant decline in building permits, which were reduced by 43 percent.

Regional differences can be observed in price development. Condominiums with an area of ​​61 to 90 m² reach average prices of around 5,522 euros per square meter. While smaller apartments up to 40 m² cost around 6,284 euros per square meter, larger condominiums over 90 m² cost around 6,261 euros per square meter. Including single-family homes, which cost an average of 5,172 euros per square meter, demand is particularly high in central locations such as Eppendorf, Rotherbaum and HafenCity. Some of these areas record prices of over 10,000 euros per square meter.

Market analyzes and forecasts

The “Hamburg 2025 Real Estate Market Report”, prepared by the expert committee for property values, provides well-founded information on the situation on the property market. The report is based on purchase contracts that have actually been notarized and contains a variety of statistical evaluations. The average price for one- and two-family homes is currently 808,000 euros, the median price is 558,000 euros. The report shows an increase in the price per square meter for condominiums by 2 percent to around 8,200 euros.

Interestingly, the number of transactions for new apartments increased by 73 percent and for single-family home construction sites by 79 percent. In 2024, sales of office and commercial buildings also increased by 27 percent. Given the steady population growth and the trend towards sustainable real estate, prices are expected to increase by 3 to 6 percent annually in the coming years. However, buyers are becoming increasingly selective as borrowing costs rise to around 3.41 percent and innovative financing models become more important.

Overall, the current situation makes it clear that the real estate market in Hamburg will continue to develop despite various hurdles. Owners and potential buyers are well advised to obtain comprehensive information about the market conditions and seek professional support in order to master the challenges accurately.