Hamburg – “A ripe property location for investors”
City overview
Hamburg, with a population of 1.79 million people (4.3 million including the metropolitan area), is Germany's second largest city. Hamburg, a city-state of its own, is the cultural and commercial hub of Northern Germany, achieving the second highest GDP per capita among German cities.
Being home to the largest seaport in Germany, many global businesses are located in Hamburg, positioning itself as a new global hub for life science, media and technology, in particular for the aviation and logistics industry.
The transformation of Hamburg into an international hub is well-reflected in the total number of people with a migrant background, which accounts for 34% of the total population. 631,246 foreign nationals come from more than 180 different countries.
Real estate market trends & outlook
The costs of buying existing houses or apartments in Hamburg have risen more than 70% since 2009.
Compared to other metropolitan areas, rent growth in Hamburg is below average, which is mainly caused by comparatively strong construction activity and a very stable population growth. The city forecasts a small increase in the number of inhabitants by only 52,000, to 1.84 million, by 2030.
One of the key drivers for continuous growth of apartment and house prices may then be the low interest rates. Hamburg's property market could therefore be more sensitive to interest rate changes over the next few years, compared to other real estate markets in Germany.
Prices for existing residential units reached to €4,390/sqm on average in the first half of 2018 in Hamburg, which are the third-highest in Germany, after Munich and Frankfurt. Rental prices increased by 3.8% and reached €12.35/sqm on average. The highest rents are yielded around the Außenalster, with an average of €14,22/sqm. The costs of buying single-family homes have increased by more than 10% compared to the previous year and the asking prices are now €632,590 on average.
Stable population growth and steady increase of new building permits and building completions have led to fewer demand, which explains why rent and price growth are kept at an acceptable level. A young workforce, with one third of the city's residents below the age of 30, combined with a very low vacancy rate of only 0.7% suggest that Hamburg will remain a very attractive target for real estate investment for the years to come.
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How prices are growing in
major German cities?
Germany's strong economic growth has resulted in price increases across German cities: On average the prices doubled in the last 10 years. Rents also follow the house price development in Germany: the average increase amounts to 50% between 2008 and 2018.
In Hamburg, the average annual property prices per square meter has increased from €2,000 in 2008 to €4,390 in 2018. Meanwhile, the average rent prices per square meter also increased from €8.10 in 2008 to €12.35 in 2018.
About us
LoanLink24 is a German mortgage broker, and we specialize in international clients. If you want to purchase Hamburg real estate, we can help. Our Hamburg mortgage broker team will advise you in English, and our online platform will find the best mortgage rates from among 400+ regional and global German banks.
You can access our platform any day of the week, at any time, to find help with a German mortgage. Not only that, our home loan calculator can lso show you how much you can borrow, and what your monthly payments may be. And best of all, our resources are in English and are completely free.
LoanLink24 is registered and controlled by the surveillance authority in Hamburg.
Got a question or a complex situation?
Our friendly home loan experts are happy to support you in finding a mortgage in Hamburg. Call us on +49 (0) 30 5683 7535 or email us at service@loanlink24.com
How it works
More information on mortgages in Germany
Can’t find what you’re looking for here? We’ve got more answers on our FAQs page.
When buying a property in Hamburg, you always have to pay for additional fees, such as real estate tax, real estate agent fees, notary costs etc. In Germany, real estate purchase fees may be up to 15% of the property’s purchase price. Similar to a downpayment, purchase fees should be covered by the buyer’s own equity instead of a bank mortgage. In Hamburg, the approximate additional purchase fees are as follow:
Real estate tax: 4.25%
Real estate agent fees: 6.25%
Notary costs: 2%
Total costs: 12.75%
For more information in regards to the additional fees you would pay when buying a property in Hamburg, please check out our mortgage calculators for a more accurate calculation.
Altogether, the timeline depends on you. If you have all relevant documents ready the process can take only a few days. In case you want to be covered as fast as possible, please let us know. We have direct relationships to the credit departments of our partner banks and can accelerate the process.
Generally, lenders require information about your personal and financial situation. Some of the documents you will need include:
- A German self-disclosure document.
- Proof of equity.
- Proof of income (last 3 payslips).
- 2 years of balance sheets (if self-employed).
- Property information (e.g., the extract from the land register).
- Copy of your passport, blue card, and/or visa.
- Latest tax declaration.
- Documentation of rental income.
To list all documents you may need, please find a Complete document checklist on our blog.
Once you decide to purchase property in Germany, contact the LoanLink24 undefined Mortgage brokers via live chat, email or phone. Whenever you have a spare minute, you can also read our German mortgage blog to learn more.
In essence, a mortgage broker is an intermediary who brokers mortgage loans on behalf of individuals. We compare the mortgage products with an algorithm that spots the best deal for you. Accordingly, you can either visit us in Berlin or Frankfurt or you can simply use our online application process. It’s all digital!
property in Germany
Get the Loanlink24 guide of buying
property in Hamburg
Buying a home is complicated and stressful - even for German native speakers. We’ve created a comprehensive and easy to understand guide to buying a property in Germany: