Hannover is a logistics and industrial center and the capital of the federal state of Lower Saxony. The city is considered as a significant logistics center in North Germany, after Hamburg. The positive real estate developments supported by the strong economy over the last few years has generated long term interest for residential properties in Hannover.
For instance, the increase in population in both the state capital Hannover and a few neighbouring cities is pushing up interest for residential properties. Over the last few years (2013-2017) the population of Hannover increased by 17,300 (+3.3 %) reaching 541,800 in 2017.
Being Europe’s logistics hub, several trading and industrial enterprises are headquartered in the Hannover region. Other important sectors continue to be manufacturing, financial services, and trade fair. The conference and trade fair sector promotes national and global recognition and positively affects Hannover’s economy.
The demand for residential property has increased in Hannover with the increase in population. This has directly affected rent prices in the city. Residential rent for new builds was €14.50/sqm in 2016 and increased to €15.50/sqm in 2018. Further, purchase prices for owner occupied apartments for existing houses in Hannover were valued at €1,400/sqm for medium living quality in 2017, which was higher than purchase prices in Bremen, Essen, and Leipzig. However, purchase prices for owner-occupied new build apartments were valued at €2,600/sqm for medium living quality in 2017, being the lowest along with Essen.
Another factor that drives growth of Hannover real estate market is the increasing employment. In 2018, the unemployment rate was as low as 7.5%, with the state hosting more than 300,000 jobs. Moreover, this trend has encouraged the housing sector to build 1,000 apartments per year by 2020 and include them under the public subsidised housing units. This initiative is intended to offer reasonable and subsidized housing to the citizens of Hannover. With a vacancy rate of less than 2% in the last few years, it is expected that Hannover will continue to be an attractive target for real estate investment in the years to come.
We’re in partnerships with multiple property listing pages and real estate agents to help you find a home. For instance, if you’re planning to buy a property in Hannover, particularly new build real estate, you’ll find neubau kompass very useful to find a property!
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 Hannover, the purchase price for new build owner-occupied apartments with medium quality were €2,600/sqm in 2017, significantly lower than cities such as Munich and Stuttgart.
LoanLink24 is a German mortgage broker specialized in the Hannover real estate market. We also help expats and foreign investors get a mortgage. Our Hannover 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 mortgage calculator can also 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 Hannover.
Can’t find what you’re looking for here? We’ve got more answers on our FAQs page.
When buying a property in Hannover, you always have to pay for additional fees, such as real estate tax, real estate agent fees, notary costs etc. In Germany, purchase fees may be up to 15% of the property’s purchase price. Similar to a down payment, real estate purchase fees should be covered by the buyer’s own equity instead of a bank mortgage. In Hannover, the approximate additional purchase fees are as follows:
Real estate tax: 5%
Real estate agent fees: 3.57%
Notary costs: 2%
Total costs: 10.07%
For more information in regards to the additional fees you would pay when buying a property in Hannover, please check out our mortgage calculator for a more accurate calculation.
As soon as your initial mortgage expires, you have two options. On one hand, you can choose to pay off the entire mortgage at once. Otherwise, you can refinance at current market interest rates with your current bank or a new lender. In most cases, refinancing with a new lender results in better rates for you.
We can help you to identify the best refinancing deal from 400+ partner banks.
As soon as you decide to buy, there are several good resources for locating a property in Germany. A few of the most common resources are the major residential real estate pages like immobilienscout24.de or immowelt.de.
Additionally, you can approach local real estate agents or the construction company. Also, please approach us. We have partners in Frankfurt, Berlin, Munich, Hamburg or Stuttgart who are ready to help.
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.