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Lohsequartier: © moka studio via ece

Hamburg investment market achieves record half-year result

Investment volume in the first half of the year at highest level for eight years. Increase of 12 percent over same period last year. Demand particularly high for inner-city locations.

The investment volume in the Hamburg market in the first six months of 2015 amounted to 1.84 billion euros. According to BNP Paribas Real Estate, this is the highest half-year result since 2007. “The market is showing the same vitality we have seen in recent years, which is reflected in a large number of property sales. The second quarter was significantly stronger than the first three months, with more than one billion euros invested,” explains Marco Stahl, Managing Director of BNP Paribas Real Estate GmbH. An increase in sales at the upper end of the two-digit range has seen the average volume per sale rise to 26 million euros. The biggest transaction so far was the purchase of part of the Axel Springer building by the City of Hamburg for around 130 million euros.

City continues to be the most popular location

In a breakdown according to the type of property, office real estate leads by far, with more than 1.2 billion euros invested in this category in the first six months of the year, representing around 67 percent of the market. This is the second-highest figure on record, exceeded only in 2007, and according to BNP it is the attributable both to the large number of transactions and to a number of very large-volume deals. Hotel properties saw a six-month record, with 14 percent of the market and second place in the breakdown by category, pushing retail sites into third place; with around 12 percent, the investment volume in retail was relatively low. Logistic properties and other real estate each took around 3 percent of the market. More than one billion euros was invested in Hamburg’s inner city, representing almost 60 percent of total market volume. According to BNP, this was only just short of the record volume for the inner city, set in mid-2006.

Matching last year’s results

“The outstanding half-year result underlines the high levels of demand from both domestic and international investors. Based on the continuing positive overall economic trend, we can expect a high investment volume in the second half of the year, too. A result for the full year in line with last year’s volume (3.8 billion euros) seems completely realistic. Beyond that, the top returns may yield further, considering the strong competition for core properties,” predicts Marco Stahl.
pk/pjc

Source and further information:
www.realestate.bnpparibas.de

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