Hamburg, August 9, 2026 – Hamburg’s largest municipal housing company, SAGA, announced a substantial 16 percent decline in its annual surplus for 2025, reaching 238.1 million euros. This figure, while exceeding internal projections, represents a notable decrease from 2024, which was an exceptional year for the company due to the dissolution of provisions.
SAGA Increases Housing Construction Efforts
Despite the dip in profit, SAGA demonstrated a strong commitment to addressing Hamburg’s housing needs. The company commenced construction on 1,100 new apartments in 2025, surpassing its initial goal by 300 units. A total of 550 units were completed, slightly below the planned 800. Currently, 2,800 SAGA apartments are under construction, with a mid-term objective to initiate 2,000 new builds annually.
Financial Performance and Contributions to the City
SAGA’s annual surplus of 238.1 million euros for 2025, although a 16 percent decrease from 2024, still exceeded the company’s internal targets. As in the previous year, SAGA distributed 150 million euros to the City of Hamburg. The company manages approximately 140,000 apartments and over 1,500 commercial properties across the city.
Acquisition of Insolvent Projects and Social Housing Initiatives
Thomas Krebs, SAGA’s CEO, revealed that the company is actively acquiring insolvent housing projects. “We are receiving more and more offers, including from insolvencies,” Krebs stated. “We benefit from this because it allows us to acquire such stranded projects, which we then re-plan for subsidized housing.” These acquisitions, supported by city subsidies, facilitate the creation of social housing. The average cold rent for SAGA apartments is 7.56 euros per square meter, contributing to an average tenancy of 22 years for SAGA residents.
Billion-Euro Investments for Climate-Neutral Housing
In response to Hamburg’s climate resolution, which mandates a climate-neutral housing stock by 2040, SAGA plans significant investments. Krebs emphasized that insulating every facade and roof of their 140,000 apartments is financially unfeasible. However, the early transition to clean district heating or heat pumps will incur substantial costs. “Bringing forward the targets from 2045 to 2040 is very ambitious. This will cost us approximately 1.5 billion euros due to pull-forward effects in the area of renovation. We need to renovate faster and more effectively. But we also need the city’s support,” Krebs explained.
Criticism from The Left Party Regarding Rent Increases
The Left Party in Hamburg criticized SAGA’s rent increases in light of its profits and distributions. Heike Sudmann, the party’s housing policy spokesperson, argued, “A general rent reduction is better and more socially sustainable.” She added that lower SAGA rents would lead to a lower rent index, benefiting other Hamburg residents.
New Construction Projects Across Hamburg
SAGA is involved in several key development projects across Hamburg:
- “Kiezkante” on St. Pauli: Twelve years after the demolition of the Esso-Häuser, construction has begun on a large vacant lot in Hamburg’s St. Pauli district.
- Holsten-Areal Handover: The Holsten-Areal in Hamburg-Altona, previously a speculative property for years, has been transferred to new owners, paving the way for 2,000 new apartments.
- Fourth Round of the Alliance for Housing: An agreement was signed at the city hall, aiming to facilitate 10,000 building permits annually by 2030.
Contextual Information from NDR.de
This report from NDR.de also includes other news from Hamburg:
- Shooting in Steilshoop: A 23-year-old man was shot in the leg in Fritz-Flinte-Ring. Police are investigating, and suspects are at large.
- HHLA Halts Ship Handling in Odessa: The Hamburg port operator has temporarily ceased handling ships at its terminal in Ukraine due to increased Russian attacks.
- Long Covid and ME/CFS Demonstration: Affected individuals protested outside the UKE for better medical care for Long Covid and ME/CFS.
- European Athletics Championships: Simon Plitzko: From “Absolute Chaos” to European Championships Participant.
- ADFC Demands Car Parking Ban: The ADFC calls for a ban on car parking on the Elbdeich in the Vierlande.
- HSV Draws 2:2 in Test Match: Fans are already looking forward to the new season.
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Source: https://www.ndr.de/nachrichten/hamburg/weniger-gewinn-bei-hamburgs-staedtischer-wohnungsgesellschaft-saga,saga-112.html
