Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1} Share on Xing

Investors’ risk aversion meets low availability of core properties in Hamburg market

Verena Bauer • 09/07/2021

Low transaction volume in Hamburg's investment market
Following record turnover in Hamburg's commercial investment market in the first half of 2020, this year's mid-year figure is 43% lower at around €1.16bn. This means that the transaction volume lags behind the 5 and 10-year averages by 34 % and 24 % respectively. In contrast to last year, when investments were largely concentrated in city centre locations, a large proportion of the investment volume (over 30%) was transacted in the eastern city locations in H1 2021.

Offices were again the asset class with the highest transaction volume. In total, around €460 million was invested in office properties and development projects to mid-year, corresponding to 40% of the total. Compared to the first half of 2020, the result is a decline in turnover of around 55%. The reason for this is primarily the low number of large-volume transactions of office properties in the three-digit-million-euro range. So far, only the sale by the Oetker Group of the Hamburg Süd Haus property to Union Investment in the City submarket in the first quarter for around 155 million euros falls into this size category.

Transaction volume for logistics and industrial properties was above average, accounting for 34% of the total of 390 million euros. A significant contribution to this was made by the sale by Fiege Logistik to the DWS Group of the Spectrum logistics centre in an eastern city location for around 189 million euros in the second quarter.

The transaction volume for retail properties contributed around 9% of the total via a volume of 102 million euros in H1. Compared to last year, this is a fall of 51%, the reason being primarily the lack of suitable properties.

Investment Hamburg

Marc Rohrer, Head of Capital Markets and Branch Manager of Cushman & Wakefield in Hamburg, explains: "In the course of the year to date, investors' attention was primarily focused on core and core+ properties, but there was a lack of corresponding product availability. This slowed potential market activity and capped the transaction volume. Investors’ strong risk aversion is reflected in the more than 80% proportion of transaction volume for core and core+ properties in H1. In addition, there were not many large-volume deals. Even though there are some large transactions in the pipeline, the demand overhang for core properties will continue to characterise the second half of the year, which leads us to expect a lower transaction volume for the year as a whole than those of recent years."

Excess demand for core properties puts pressure on prime yields
The net initial yield for prime office properties in Hamburg's central locations has been stable at 2.80 % since the beginning of 2020, while in the non-central locations it is currently 3.90 %. In view of the consistently high demand for highly attractive core office properties with stable cash flows and tenants with strong credit ratings, yields are expected to compress slightly over the remainder of the year. The excess demand for logistics properties is similarly noticeable. The yield for high-quality logistics properties was 3.30% at mid-year. Compared to the same point last year, it has fallen by 60 basis points. The prime yield for city centre commercial properties is currently 3.80%




verena bauer
Verena Bauer

Head of Marketing & Communications Germany, Cluster Lead • 60313 Frankfurt am Main


Action required in German office stock

The office real estate stock in Germany's top-5 locations is getting older: By 2030, more than 60 percent will have be over 30 years old.

Verena Bauer • 02/10/2023

Pierre Nolte becomes Head of Tenant Representation EMEA
Pierre Nolte becomes Head of Tenant Representation EMEA

Pierre Nolte has been appointed Head of Tenant Representation EMEA. He takes on the newly created role in addition to his role as Head of Tenant Representation Germany, which he has already held for four years.

Verena Bauer • 28/09/2023

Newlyweds celebrate their new apartment surrounded by moving boxes
Current residential real estate market sentiment and changed investment strategies

Regarding the past twelve months, residential investors in Germany paint a sombre picture: More than half have not achieved their sale and acquisition targets and transaction processes are protracted. 

Verena Bauer • 25/09/2023


The U.S. Consulate General on the banks of the Alster in Hamburg
Insights • Investment / Capital Markets

Listed historic buildings

The effects of the interest rate turnaround are still being felt in the second half of the year. Many risk-averse investors are realigning their strategy and are increasingly looking at government bonds or fixed-term deposit accounts.
A businesswoman on the way to office with her bicycle
Research • Workplace

Rethinking the Office Sector

Identify obsolescence risks. Implement repositioning and repurposing strategies.


Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies.
These cookies ensure that our website performs as expected, for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All