MARKET ACTIVITY STILL FRAGMENTED, BUT NOTICABLE UPTURN COMPARED TO PREVIOUS YEAR
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After a very dynamic end to 2024 on the Hamburg investment market with deals such as the Alsterarkaden and Gerhart-Hauptmann-Platz 50, there was no surplus of large-volume transactions that were at the finishing line in the first quarter of 2025. Consequently, an interim result of around €456 million was recorded in the Hanseatic city after the first three months, which so far consists entirely of smaller investments below the €50 million mark in individual deals.
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In light of the fact that the volume achieved remains at a low level in a long-term comparison, but nevertheless marks the second consecutive increase in turnover (+21%), the current Q1 result is put into perspective somewhat. Furthermore, the Hamburg market ranks above the average volume of the top markets (around €360 million), which suggests that other large locations will also need some time to get up to speed before they can capitalise on the improved market sentiment in 2025.
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The most important sales driver in the first quarter was the healthcare share deal of 13 Hamburg care facilities, which were sold by Deutsche Wohnen to the City of Hamburg in the form of a portfolio. This transaction is ultimately also the reason why package sales have so far been able to generate an unusually high market share of almost 86%.
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The investments registered in the first quarter had no measurable impact on the development of prime yields, meaning that premium high street properties (3.75%), top office properties (4.25%) and core logistics assets (4.25%) maintained their respective values from the end of 2024.