Real Estate - Number of new apartments in Hanover at record level
In Hannover, the number of ready-to-move-in apartments reached an all-time high of approximately 4,203 units in the past year, according to data from the Niedersachsen State Office for Statistics. The city shared that this record number for the state capital is due to the high number of building permits, which took time to materialize in completion numbers.
Hannover ranks fourth among the major cities in absolute numbers, behind Berlin, Munich, and Hamburg, but ahead of Frankfurt and Cologne. "The intensive efforts of the city and the housing industry to create new and affordable housing are showing results, as evident on the housing market," said Mayor Belit Onay. It's pleasing that the record number of new apartments isn't just due to large projects like Kronsberg Süd or the Water City Limmer, but that the "Bauturbo" with a multitude of smaller projects in all parts of the city territory is having an impact, stated City Architect Thomas Vielhaber.
No Relief on the Housing Market
Despite these developments, there is still no sign of relief on the housing market, as rents continue to remain high, and the demand for housing remains significant. The city council decided to update the housing concept in November 2023. The consultants' report for the update predicts a continued high housing demand of around 16,800 housing units by 2035, which corresponds to an annual new construction requirement of approximately 1,300 housing units.
The current completion numbers reflect the housing market situation from two years ago. Currently, in Hannover, the non-controllable worsening of framework conditions, such as increased interest rates and high energy and construction costs, make it challenging to create sufficient affordable housing.
- Despite the record standing of the number of ready-to-move-in apartments in Cologne's housing market not being as impressive as Hannover's, the city is also making efforts to build more affordable housing.
- In contrast to Hannover's booming housing market, Munich and Berlin, both known for their high property prices, are currently experiencing a slightly slower growth in their housing markets.
- The housing market in Lower Saxony, with Hannover as its largest city, is showing positive signs, with cities like Hannover and Hanover proving to be attractive locations for real estate investment.
- The housing market in Frankfurt, despite being overshadowed by cities like Berlin and Munich, is also showing a steady growth, influenced by its strong economy and promising living conditions.
- The housing market in Hamburg, another major city in Germany, is also witnessing a surge in demand for housing, leading to increased construction activity and rising property prices.
- Regardless of the geographical location, whether it's Hannover, Hamburg, Frankfurt, Munich, Berlin, or Cologne, the global trend of rising living costs is impacting the affordability of housing in all these cities.
