The Hamburg apartment building market achieved a turnover of EUR 806 million in the first half of 2026, the highest figure since 2021. These data, based on figures from the Hamburg Expert Committee, were analysed in the current market report by ZINSHAUSTEAM & KENBO Investmentmakler. However, the initial positive development, which lasted until the end of February, experienced a significant weakening from March onwards, significantly influenced by the start of the Iran War and the resulting economic uncertainties.
In total, 223 apartment buildings were sold in the first half of the year. This represents an 8 per cent increase in turnover compared to the same period last year, although the number of transactions saw a slight decline (2025: 236). A higher half-year turnover was last recorded in 2021, at EUR 1.1 billion. Moritz Carl Gäde, Managing Partner at ZINSHAUSTEAM & KENBO Investmentmakler, noted that the half-year figures were still shaped by the momentum that persisted until the end of February, and that investment readiness noticeably declined thereafter.
Development of market segments and price dynamics
The development in the two quarters of the first half-year was heterogeneous. The first quarter continued the upward trend of the previous year, with a turnover of EUR 448 million – an increase of 47 per cent compared to the first quarter of 2025 and 127 per cent compared to the first quarter of 2024. In the second quarter, however, turnover fell to EUR 358 million, despite a slightly higher number of deals, and was thus below the figure for the second quarter of 2025 (EUR 442 million). The average turnover per transaction fell from EUR 4.1 million in the first quarter to EUR 3.1 million in the second quarter. Building land for apartment buildings was also in demand at the beginning of the year, with 38 plots changing hands for EUR 128 million; 73 per cent of this turnover occurred in the first quarter.
Prices showed a divergent development. The average price per square metre across all locations decreased by 4.1 per cent to EUR 3,178/m² compared to 2025, thereby eroding part of the price recovery of the previous year. While prime locations saw an increase in the average price by 38 per cent to EUR 8,353/m², prices in secondary locations fell by 28 per cent to EUR 2,194/m². Mid-range locations, which had the highest number of transactions (44 sales), recorded a price decrease of 4.7 per cent to EUR 2,487/m². Good locations, however, increased by 1.8 per cent to EUR 3,366/m². The sales multiples reflect this picture: on average, the multiple decreased by 6.3 per cent to 20.7, while it climbed by 25 per cent to 37.6 in prime locations and fell by 26 per cent to 18.1 in poorer locations.
Investor behaviour and structural challenges
Current market conditions, characterised by the Iran War, increased inflation, and the ECB's elevated interest rates, are leading to a shift in investor behaviour. Equity-strong investors, particularly family offices, are increasingly dominating purchasing activity. First-time buyers have become rarer due to the high demand for external capital. Institutional investors are almost exclusively acting as sellers, disposing of properties in need of refurbishment. The market currently offers no new-build properties that would be attractive to institutional investors (multiple of 23 to 24).
An example illustrates the changed valuation: a classic apartment building in Eppendorf, which traded at 30 to 35 times the annual net cold rent in 2021, now achieves multiples of around 22 and approximately EUR 4,000/m². According to Gäde's experience, energy-efficiently renovated houses in good locations with a low commercial share can still achieve a multiple of 20 or more. Despite these developments, the fundamentals of the Hamburg market remain stable: the city continues to grow, vacancies in apartment buildings are below one per cent, and rents are rising – the median asking rent in August was EUR 18.63/m², an increase of 4.7 per cent since the beginning of the year.
Regarding residential construction in Hamburg, a low dynamic continues to be observed. In 2025, 5,976 flats were completed, 28 per cent fewer than in the previous year and the lowest figure since 2012. Positive signals come from building permits, where 4,198 flats were approved by the end of August, 1,514 more than in the same period last year. The federal government's funding policy is critically assessed, as inconsistent funding conditions impair planning security for long-term residential construction projects. Hamburg has created its own instruments with the Hamburg Standard and the
