SUBDUED HALF-YEAR RESULT
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After the first six months, the Hamburg office market recorded a somewhat more subdued half-year result compared with the previous year. Take-up of 177,000 sqm was around 18% below the previous-year figure and 24% below the long-term average (10-year average: 233,000 sqm). Compared with the first quarter (91,000 sqm), take-up in the second quarter was also slightly lower at 86,000 sqm.
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Despite its high resilience, the Hamburg market also continues to be shaped by an overall subdued environment. Against the backdrop of macroeconomic uncertainty, a cautious public sector and the absence of major contracts so far, demand remains restrained, while modern space in attractive locations with good public transport connections continues to be in above-average demand in the context of the “war for talent”.
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At the same time, a certain degree of restraint is evident on the supply side: project developments are currently often only being initiated at higher pre-letting rates and are therefore being pushed further back in time.
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In the prime segment, however, positive momentum is evident: an initial high-priced letting in a new-build scheme (above €41/sqm) has sent a signal for the rental level of upcoming projects. This should also be seen in the context of the 8% increase in prime rent, which currently stands at €39.00/sqm for absolute top-quality space in prime locations.