By the end of the first half of 2024 a greater number of investment transactions in commercial real estate in Hamburg had been noted. At €640m the volume traded was some 23 % higher than the prior year’s total, but still appreciably lower than the long-term average. The economic environment is not yet sufficiently settled. Institutional investors are still especially prone to act with great caution. Whereas year on year more properties were traded in the small to medium price segment, no large sales of real estate costing more than €100m were noted. “Overall, we can observe more activity on the market. More transactions are being concluded than before, but investors are still very unwilling to spend more than €50m on a property trade,” comments Andreas Rehberg, spokesperson for the management board of Grossmann & Berger Immobilien, member of German Property Partners (GPP). For the 2nd half of the year Rehberg predicts that, “A market shake-out among developers is likely to continue. By the end of the year we expect to see a moderate rise in investment business when it is possible to make more reliable cost calculations. The lowering of interest rates in June is at least a step in the right direction.”
The Market survey Investment Hamburg 2024/Q1-Q2 will shortly be available on our website.
