The north German city of Hamburg, on the Elbe River, is one of the strongest economic hubs in the whole of Europe, and is witnessing an ongoing dynamic growth in prices for residential real estate, according to a recent report by Engel & Volkers (E+V).

The firm said that in Q4 2021, the average asking price for freehold apartments in the city was €6,762sqm, a 14.6% rise over the same quarter in 2020. Hamburg has now overtaken Frankfurt in the Germany-wide price ranking for freehold apartments and now occupies second place directly after Munich.

Detached and semi-detached houses were on the market for an average asking price of €725,000, representing a growth of more than 15.1% compared to the same quarter in the previous year.

“Despite the comparatively high level of construction activity, the excess demand in Hamburg remains clear to see. Whilst the increased demand for residential real estate is not met, we expect prices to continue to rise in 2022, albeit at a considerably more moderate level,” said Philip Bonhoeffer, managing partner of E+V Hamburg, adding: “The rising costs of construction are also set to have a significant impact on property prices.”