Hamburg Housing Construction: Industry Sees Turnaround, But Needs Remain High
Hamburg, February 26 – The Federal Association of Free Real Estate and Housing Companies (BFW) announced on Wednesday that the trough in Hamburg’s housing construction has been overcome. According to a survey of its members, the association anticipates that construction will begin on more than 2,200 apartments in Hamburg this year. This marks a positive shift after a period of decline in new housing projects.
In the past year, BFW member companies completed 2,058 apartments in Hamburg, representing an increase of almost seven percent compared to the previous year. This growth is a hopeful sign for the city’s housing market, which has faced significant challenges in recent times.
Demand Still Outstrips Supply
Despite the optimistic outlook, the BFW cautions against excessive euphoria. The current level of construction remains significantly below the actual demand for housing in Hamburg. At peak times, more than twice as many apartments were built in the city. This underscores the persistent need for continued efforts to address the housing shortage.
The turnaround is attributed to a combination of factors. Alongside subsidized housing construction, new simplified building regulations, known as the “Hamburg Standard,” are now taking effect. These new rules are expected to streamline the construction process and encourage more development.
No Immediate Relief for Tenants
For tenants, however, immediate relief is not yet in sight. Apartments whose construction begins now are not expected to be completed until 2028 at the earliest. Only then might there be some movement in the rental market, potentially leading to a slight easing of prices and increased availability.
SAGA Plans Demolition and New Construction in Billstedt
In a related development, the housing company SAGA plans to demolish existing apartments from the 1950s near the Merkenstraße U-Bahn station in Billstedt and replace them with new buildings. Currently, residents in these older units benefit from affordable rents. This initiative highlights the ongoing efforts to modernize and expand housing options in various districts of Hamburg.
High Demand for Cooperative Apartments
A recent study revealed the high demand for cooperative apartments in Hamburg. On average, there are 88 applications for every vacant cooperative apartment. Small apartments are particularly sought after, indicating a strong need for more compact and affordable living spaces.
Empty Offices as Living Space: New Model Projects Planned
Hamburg is also exploring innovative solutions to its housing challenges. Currently, about six percent of office spaces in the city are vacant. The SPD and Green parties are seeking ways to convert these empty offices into residential units through new model projects. This initiative aims to utilize existing infrastructure and provide additional housing options within the city center.
Hamburg Journal Reports on Housing Market
The Hamburg Journal on NDR Fernsehen covered these developments at 6:00 PM on February 26, 2026, providing further insights into the city’s dynamic housing market. The report emphasized the ongoing efforts to balance new construction with the needs of existing residents and the broader urban development goals.
The current situation in Hamburg’s housing market reflects a complex interplay of supply, demand, regulatory changes, and urban planning initiatives. While the recent rebound in construction is a positive step, sustained efforts will be required to meet the city’s growing housing needs and ensure affordable living for all residents.
Source: https://www.ndr.de/nachrichten/hamburg/wohnungsbau-in-hamburg-verband-sieht-talsohle-durchschritten,wohnungen-156.html
