Investment Property in Hamburg

Invest in Real Estate in Hamburg

Hamburg property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Hamburg .

Search Map of Hamburg Investment Real Estate

Hamburg (German: [ˈhambʊʁk] (listen), locally also [ˈhambʊɪ̯ç] (listen); Low Saxon: Hamborg [ˈhambɔːç] (listen)), officially the Free and Hanseatic City of Hamburg (German: Freie und Hansestadt Hamburg; Low Saxon: Friee un Hansestadt Hamborg), is the second-largest city in Germany after Berlin, as well as the overall 7th largest city and largest non-capital city in the European Union with a population of over 1.85 million. Hamburg’s urban area has a population of around 2.5 million and is part of the Hamburg Metropolitan Region, which has a population of over 5.1 million people in total. The city lies on the River Elbe and two of its tributaries, the River Alster and the River Bille. One of Germany’s 16 federated states, Hamburg is surrounded by Schleswig-Holstein to the north and Lower Saxony to the south.

The official name reflects Hamburg’s history as a member of the medieval Hanseatic League and a free imperial city of the Holy Roman Empire. Before the 1871 unification of Germany, it was a fully sovereign city state, and before 1919 formed a civic republic headed constitutionally by a class of hereditary grand burghers or Hanseaten. Beset by disasters such as the Great Fire of Hamburg, North Sea flood of 1962 and military conflicts including World War II bombing raids, the city has managed to recover and emerge wealthier after each catastrophe.

Hamburg is Europe’s third largest port, after Rotterdam and Antwerp. Major regional broadcaster NDR, the printing and publishing firm Gruner + Jahr and the newspapers Der Spiegel and Die Zeit are based in the city. Hamburg is the seat of Germany’s oldest stock exchange and the world’s oldest merchant bank, Berenberg Bank. Media, commercial, logistical, and industrial firms with significant locations in the city include multinationals Airbus, Blohm + Voss, Aurubis, Beiersdorf, and Unilever. Hamburg is also a major European science, research, and education hub, with several universities and institutions. The city enjoys a very high quality of living, being ranked 19th in the 2019 Mercer Quality of Living Survey.

Hamburg hosts specialists in world economics and international law, including consular and diplomatic missions as the International Tribunal for the Law of the Sea, the EU-LAC Foundation, and the UNESCO Institute for Lifelong Learning, multipartite international political conferences and summits such as Europe and China and the G20. Both former German chancellors Helmut Schmidt and Angela Merkel were born in Hamburg. The former Mayor of Hamburg, Olaf Scholz, has been the current German chancellor since December 2021.

Hamburg is a major international and domestic tourist destination. The Speicherstadt and Kontorhausviertel were declared World Heritage Sites by UNESCO in 2015. Hamburg’s rivers and canals are crossed by around 2,500 bridges, making it the city with the highest number of bridges in Europe. Aside from its rich architectural heritage, the city is also home to notable cultural venues such as the Elbphilharmonie and Laeiszhalle concert halls. It gave birth to movements like Hamburger Schule and paved the way for bands including the Beatles. Hamburg is also known for several theatres and a variety of musical shows. St. Pauli’s Reeperbahn is among the best-known European entertainment districts.

The financial stability of Hamburg has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Hamburg

Renting out your Hamburg buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Hamburg are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Hamburg and be prepared to change your initial outlook.
Thoroughly research the Hamburg location with a special emphasis on fringe areas outside the main Hamburg metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Hamburg.
Ensure that your target investment property in Hamburg appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

With our expert guidance, investing in Hamburg provides the secure knowledge that your money is working harder than it would in a local Hamburg bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Hamburg, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Hamburg property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Hamburg

Flipping property in Hamburg

Flipping property is when we advise clients to buy a Hamburg property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Hamburg market has a time to react to the renovation.

The Flipping Strategy in Hamburg

Investment property flipping in Hamburg is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Hamburg real estate investments are sometimes referred to by professionals as ‘distressed’ Hamburg real estate.

What is distressed Hamburg property:

Hamburg property in need of renovation
Hamburg real estate with a change of purpose and use
Oversold Hamburg property
Bank repossessions in Hamburg

Put simply, long term investors in Hamburg purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Hamburg investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Hamburg property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Hamburg use a minimum profit value of 22% when looking at potential Hamburg projects.

The reason for this is because there are lots that can go wrong in Hamburg property flipping and working on a potential margin of 22% should still leave a good margin of error.

Invest through a Fund in Hamburg

Property Secured Investments is a Private Equity fund that invests in Hamburg and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Hamburg

For luxury property investors hoping to add a superb property in Hamburg to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Hamburg, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Hamburg should be entrusted to only the highest-quality agency.