Outline of a multifaceted Residential Investment Market

12 May, 2015

Outline of a multifaceted Residential Investment Market – in June 2014

Hamburg is a big city with various urban neighborhoods. A dynamic metropolis that is constantly changing. This also characterizes the multifaceted market of apartment buildings.

Neighborhoods like Ottensen, St. Georg and the Schanzenviertel are increasingly mutated into districts of higher income groups in recent years from the lodging of an average worker. Profits have here, of course, the owners of apartment buildings. Disproportionately high rents construction investment has made it really attractive to the renovation of many still partially derived from the period of investment properties. Not everyone welcomes this change. But the fact is also that the renovation of old buildings is expensive. Only with a reasonable profit expectation the necessary incentives for the owners are made. In result, these parts of the city recorded an above-average increase in prices for residential investment property real estate.

Hamburg is a city of contrasts. There are also parts of the city as Borgfelde, Hamm, Horn and Billstedt. Traditional neighborhoods with cheaper rents. Largely missing the Wilhelminian here. This is due to the ravages of war. It is characterized by apartment buildings of municipal housing companies. But there are also apartment buildings. Often solid red-brick buildings that have been built after the war. Less expensive properties for investors. For allocation, these local markets of less interest because here is a market for condos only partially available. The development is likely still influenced here by more consistency.

Harburg was until 1937 an independent industrial town just outside the capital. A modest municipal autonomy is still recognizable today. The investment property market has specifics here, which open up interesting prospects for investors with a more manageable budget. In the city of Harburg, Heimfeld, Eißendorf etc. there are hundreds of smaller apartment buildings and condominiums. Some are in need of rehabilitation. Partial rehabilitation areas have been designated. For the restoration capital is required. More often could be the sale of the former owners the solution and its entry into the wealth creation for the buyer of residential investment property property.  Special prosperous is currently the urban development in the area of Harburg harbor. On former industrial wasteland new attractive neighborhoods were created.

“We are looking for a residential investment property in Eimsbüttel, Eppendorf or Winterhude.” “In these districts, we want to live.” These are often heard statements by investors and tenants. These districts are popular. However, land is not renewable. Even a subsequent structural densification can hardly give a remedy. In this area the market development has long moved at a high level. Zinshäuser in the Eppendorfer Landstrasse, Bismarckstraße or in Lappenbergsallee are popular. In many cases, they were converted into condominiums. For the classic residential investors these objects are no longer available. The stepped up in addition to price developments. As a result, however, the successful purchaser of a tenement house gets here mostly a lower yield, but also a particularly stable value investment.

Are there future markets for interest home buyers? It is no secret that Barmbek has become increasingly attractive to investors. The train station in the center is being redeveloped. The Fuhlsbüttler street is shown in the central area as a redevelopment area. Former course areas and large parts of the property of the General Hospital have become areas of a successful conversion. Hundreds of condominiums and were rebuilt. The classic Barmbek is changing. Addressee is now a wealthier crowd. In the neighborhood ther are numerous residential and commercial buildings. A potential offer for the interest homebuyers who recognizes a mixed use its property as an advantage.

In Wilhelmsburg the international construction- and the garden exhibition were important sources of inspiration for the further development of the Elbe River Island. In the context of the exhibition, the Ministry of Urban Development has been resettled in the center of Wilhelmsburg. More and more investors are discovering the potential of the district. There are also interesting old buildings in Reiherstieg quarter. A life on the water in many green oases. Total currently something for the more creatively positioned investors.

Rothenburgsort, a somewhat sleepy waterfront district. Available the neighborhood to the HafenCity. Worth seeing is the structural revitalization of the town center.

In the northeast Bramfeld.  Housing is cheaper, apartment buildings are a little cheaper.

The city, the market offers many opportunities – options – for both buyers and sellers of apartment buildings. Depending on the perspective, this must only be perceived.

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