Rents for re-let and newly let apartments were up 4.8%
In 2017, rents for re-let
and newly let apartments were up 4.8% (average for all metropolitan areas:
8.4%) and 3.7% (average: 5.3%), respectively. The same applies to the cycle as
a whole from 2009 to 2017, with rents for re-let apartments and new apartments
rising 27% (average for all metropolitan areas: 47%) and 26% (average: 41%),
respectively. The introduction of a “rent brake” in 2015 is not a sufficient
explanation for this phenomenon.
Rather, it is probably due to the fact that
Hamburg has the lowest population growth rate of all metropolitan areas.
Between 2009 and 2015, population rose only an aggregate 0.7% (latest
available figure for 2015: 1.79 million).
This explains the comparatively low
demand for new homes. Moreover, the number of building permits rose
substantially and almost reached its all-time high of the 1990s in the last few
years. The number of completions increased at almost the same clip, and the
uptrend in rents slowed palpably.
EU Forecast
euf:ba.18.j:163/nws-01