Property market report 2015 Strong Location - Good

Transcription

Property market report 2015
STRONG LOCATION
GOOD INVESTMENT
BUSINESS PROMOTION
DAS MOST
THE
WICHTIGSTE
IMPORTANT
AUF EINEN
FIGURES
BLICK
AT A GLANCE
1.12 million
14.20 €/m 2
Inhabitants in the
Hannover Region
Prime rents for office
space in the city centre 2015
€ 182 million
117,000 m 2
Transaction volume in
office market 2014
Office space
turnover 2014
€ 127 million
200 €/m 2
Transaction volume
retail trade 2014
Prime retail rent
Twice in TOP 10
4,50 €/m 2
most atractive German
shopping streets 2015
Prime rent
Logistics 2015
€ 54 million
140,000 m 2
logistics market 2014
Logistic space
turnover 2014
14.50 €/m 2
€ 62 million
Prime rent residential
new build 2015
the hotel market 2014
HANNOVER: PROPERTY SUBMARKETS AT A GLANCE 1
Office rents in Hannover 2010–2015*
Offices
Provisional
15.0
14.0
Hannover is by far the largest B-location in Germany.
T he location boasts over 4.92 million m2 office space
10.0
Since 2010, an average turnover of around 130,000
m 2 has been achieved every year – a figure more than
9.0
double that of the average of B-cities.
The investment risk is relatively low because of the
2014
2010
6.8 % average for A-cities) and because of the high
2015
8.0
relatively low vacancy rate (5.7 % compared to
2013
space turnover.
11.0
2012
In the last five years Hannover, Langenhagen,
Laatzen and Garbsen have seen 660,000 m 2 office
12.0
2011
A-locations.
13.0
in €/qm 2 MF-G
and therefore has the largest office stock after the seven level of market transparency.
Prime rent city
The investment transaction volume in the office property
Prime rent city
centre periphery
Prime rent office centres
market amounted to approx. € 182 million in 2014.
* The figures for 2015 are based on details provided by market participants with respect to developments in first half-year 2015
Source: bulwiengesa AG; surveys of Hannover Region; details of market participants
Office space turnover 2014 in m 2 MF-G
117,000
of which Hannover city
105,000
of which surrounding towns of Garbsen
Laatzen and Langenhagen
Vacant space 2014 in m 2 MF-G
of which surrounding towns of Garbsen,
12,000
279,000
254,000
25,000
Vacancy rate 2014*
5.7 %
Prime office rent city centre 2015
in €/m 2 MF-G
14.30
Prime office rent, city centre periphery 2015
in €/m 2 MF-G
10.40
Net initial yield in prime locations city centre
5.5 %
200
150
100
50
0
Turnover in thousand m 2 MF-G
■ Rental City of Hannover
■ O wner occupied
City of Hannover
* Figure for surrounding towns (Garbsen, Laatzen, Langenhagen)
The vacant space figure is based on the office space full surveys in 2009-2010 and 2012/2013 in the city of Hannover. For the surrounding towns a survey of vacant space is planned for 2015/2016. Until such time local market participants assume the city of Hannover vacancy rate also applies to the stocks in the surrounding towns and reported as such in the market report.
Source: bulwiengesa AG; Hannover Region surveys; details provided by market players
MF-G - Standard method for calculating commercial rental space
1 The source for all further details (unless explicitly stated) bulwiengesa AG: calculations for Hannover Region by Hannover Region;
verified details of market participants from the property market report group Region Hannover
2014
0.44 million
2013
of which surrounding towns of Garbsen,
Office space turnover 2010–2014
2012
4.48 million.
2011
2010
4.92 million
in thousand €/qm 2 MF-G
Total office stock 2014
in m 2 MF-G
■ Rental surrounding towns
■ Owner occupied
surrounding towns
HANNOVER: PROPERTY SUBMARKETS AT A GLANCE
Retail
Retail centrality index 2015
(Germany = 100, GfK)
Hannover city
Hannover’s Georgstraße and Bahnhofstraße are amongst the
10 most attractive shopping streets in Germany in 2015, and
rank in the nation’s top A1 locations in terms of pedestrian
frequency and prime rent.
The city and the region are both extremely central, the catchment area extends westwards as far as Northrhine-Westfalia.
Within the region, there are strong shopping centres of
128.8
Region (including Hannover city)
108
Purchasing power 2015 (in € per resident, GfK)
Hannover city
22,071
22,373
Retail turnover 2015 (in € per resident, GfK)
Hannover city
6,714
supra-regional importance (Laatzen and Langenhagen)
and a number of attractive smaller inner cities and district
Prime rent city A1 location 2015 in €/ m *
centres which attract the shopping public.
Average rent city A1 location 2015 in €/ m *
In 2014, turnover in retail properties in the region was
€ 127 million.
5,707
200
2
2
145
Net initial yield in A1 locations 2015*
4.75 %
Net initial yield retail warehouse centres 2015
6.50 %
* Bahnhofstraße, Große Packhofstraße, Georgstraße
Logistics
Hannover Region is one of Europe’s key logistics hubs and
seaport hinterland hubs.
Hannover is second only to Hamburg as the most important
logistics location in North Germany.
Logistics space turnover 2014 in m²
140,000
Prime rent (new builds with excellent building
services and optimal transport connections) 2015
in €/m²
4.50
Average rent 2015 in €/m²
3.50
Net initial yield logistics centres in prime sites 2015
6.60 %
All figures valid for Hannover Region
Since 2010 more than € 500 million have been invested in
30 major location and expansion projects (hall size
> 5,000 m 2).
In 2014 the region saw trading in logistics projects reach a
total value of around € 54 million.
Residential
The demand for residential properties is currently rising in
Hannover.
In the state capital alone in the past three years the revised building law has led to the creation of over 1,500 apartments.
Between 2012 and 2014 the number of completions more than
doubled in a year-on-year comparison 3 .
Population growth in the state capital and some neighbouring municipalities is helping drive this development.
In 2014, trade in apartments and houses in the region had a
total value of around € 1.64 billion. 4
Residential rent, new builds 2015,
prime rent in €/m²
14.50
Residential rent, re-let property 2015,
prime rent in €/m²
10.50
Purchase price for owner-occupied apartments,
new builds, prime group 2015 in €/m²
4,700
Purchase price for owner-occupied apartments,
new builds, average 2015 in €/m²
3,400
Multiplier for apartment buildings/
investment properties, average 2014
15.0
Multiplier for apartment building/
investment properties inventory, prime group 2015
18.5
Multiplier for apartment building/
investment properties in new builds, prime group 2015
22.0
All figures refer to City of Hannover
2
3
According to GfK centrality index is 128.8 (city) and 108 (region) in 2015 (D = 100)
Comparison with 2009 to 2011 (average number of completions 340 housing units) to 2012 to 2014 (average number of completions 729 housing units)
Source: bulwiengesa AG calculation based on Lower Saxony state statistical office figures (statistics for apartments in residential and non-residential buildings in total)
4
With respect to the total property movements in the residential and partial ownership submarkets, detached single and double occupancy houses, terraced houses and semi-detached houses and apartment blocks (old and new buildings). Gutachterausschuss für Grundstückswerte (Expert panel for property values), Hameln-Hannover, 2015
CONTENTS 3
Foreword
Hannover Region
Location
Office
property market
Space for innovation
Moving again
Page 6
Page 20
Retail
property market
Logistics
property market
Residential
property market
Still very attractive
In demand
Continued growth
Page 34
Page 46
Page 56
Hannover in
comparison
Imprint
Maps
Page 70
Pages 19, 32/33, 45, 54/55, 67
Strong location, good investment
Page 5
Page 68
“Although Lower Saxony’s state capital has neither a highly visible skyscraper
skyline nor a gothic cathedral and definitely no Hofbräuhaus, it is nonetheless a
hot spot as far as investors are concerned.”
Handelsblatt, issue dated 1 July 2015
Hannover Region is the political, economic and cultural centre of Lower Saxony and is one of the most important locations in the German property market. All sub-segments in the
regional property market benefit from Hannover being an attractive location.
FOREWORD 5
Strong location, good investment
Dear Readers,
Hannover’s property market has enjoyed
excellent health for many years. Hannover is
now a must-have in all property portfolios of
both domestic and foreign investors. Whether
it is offices, retail, logistics or hotels – the
national and international players in the
commercial property market have got Hannover on their radar. Evidence of this being not
least the round € 450 million invested by investors in commercial properties in the region in
2014 alone. Residential properties with a value of € 1.64 billion have also been acquired by
private households and investors. Hannover can offer a stable framework for sustainable
investments.
The regional property market report has been providing improved market transparency
since 2003. Together with its partners from the property sector, regional business development promotion experts have compiled key figures on all relevant submarkets across the
region, presenting them in an attractive, informative format.
This, 13th issue, was prepared jointly with 16 partners. Regional business promotion e xperts
invite regional property players to join them at a table: together they ensure that the high
standards of the Gesellschaft für Immobilienwirtschaftliche Forschung (gif - Society of Property Researchers Germany) are observed. The results of the joint effort are reviewed and
supplemented by the well known consulting firm bulwiengesa AG.
The committed engagement of the Hannover property business community ensures this
report provides a valuable contribution to market transparency. The open and honest
exchange of information has contributed to helping faith in the Hannover location grow
steadily and strongly over the years. One outcome being that the region is now situated in the
top echelons of Germany’s property markets.
Ulf-Birger Franz
Sabine Tegtmeyer-Dette
Head of Business, Transport and Education
Department
Hannover Region
Head of the Business and Environment
Department, First Town Councillor
State Capital Hannover
Living, working, relaxation – the advantages of Hannover Region are very apparent on the Podbielskistraße. Called simply Podbi by the locals, this road extends from the Mittelland canal along the Eilenriede city forest and is home to many of the most exciting projects in all asset categories. For example the VIER residential project and the imminent
revitalisation of the grounds of the former Oststadt hospital with office and residential projects.
HANNOVER REGION LOCATION
7
Space for innovation
Hannover Region is an innovative industrial location, service metropolis and logistics hub for national and international markets. The dynamic business developments in the last 5 to 10 years provide sustainable security for the
growth of the regional property market in all sub-segments.
Modern industries and service providers
security contributions in Hannover Region, 40,000 higher than
Hannover is Lower Saxony’s key economic area. Companies
in 2010. The regional unemployment rate in June 2015 was 7.6 %
famous throughout the world and outstanding research or-
(down 0.5 % on June 2014).
ganisations work closely together. They form the motor driving
innovation and growth. Hannover is also host to international
The regional economy has seen jobs grow in double digits over
exhibitions and fairs, creating ideas for new developments in key
the last five years in almost all key industries, such as health,
technologies.
information and communications, finance and insurance
s ervices, research and development, the creative economy and
Dynamic, sustainable job growth
the automotive industry.
The growth in the number of jobs seen over the last five years
has resulted in a new record for employees paying social insurance in 2014. More than 470,000 people work and pay social
New hall 19/20 on the Deutsche Messe AG exhibition grounds in Hannover is designed to allow rapid partitioning into two separate halls of 11,000 m 2 and 3,400 m 2
size respectively. In its single hall guise the hall has a capacity of 10,000 guests. The new building is a design by Gerkan, Marg and Partner (gmp).
8 HANNOVER REGION LOCATION
The new justice centre opened its doors in July after a two-year building period. In the future the building will provide premises for the Lower Saxony finance
court, the state employment court, the Hannover employment court, Hannover social court and Hannover administration court. The specialist court centre was
built based on an investment lease concept by a private consortium (Leasing: FUBOS Beteiligungs GmbH, building: BAM Deutschland AG, architect:
HPP Hentrich-Petschnigg & Partner GmbH & Co. KG) and is on a minimum 30 year lease to the state of Lower Saxony.
All regional property submarkets are enjoying sustainable benefits from this development:
Logistics: Hannover Region is Europe’s undisputed logistics hub and seaport hinterland-hub with a lot of potential.
After Hamburg, the region is North Germany’s most important
Office: The number of people employed in offices in Han-
logistics location. In the last five years alone around 30 major
nover city rose during 2015 to a figure of around 170,000. This
(> 5,000 m 2 hall) location and expansion projects have started,
means the number of people employed in offices has risen by
representing investments of more than € 500 million in the
around 14,000 since 2010. Employment in the finance and in-
region. Primary players here are contract service providers, i:e:
surance sector alone has risen in the last five years in Hannover
those who render services for other businesses and generate
by 10 %. The associated higher demand for office property is
high own value chains. Trade and industry are increasingly ask-
tangible in the office property market on a cyclic basis and is
ing for logistics services. Indeed, every sixth job in Lower Saxony
reflected in the average area turnover per annum 5 of 130,000 m 2 .
logistics industry is located in the region, with a total of around
42,500 employees paying social security contributions.
5
With respect to years 2010 to 2014 and turnover figure estimate of market players for overall year 2015.
HANNOVER REGION LOCATION 9
After taking around two years to build, September 2014 finally saw the opening of the new Apple store. The retail premises in Hannover’s Bahnhofstraße was
re-built at great expense into a 1000 m 2 flag ship store for this famous US company.
Retail: Retail sales experienced stable growth in the first
and project developments. This is also spreading to neighbour-
six months of 2015. This has benefitted both over-the-counter
ing communities. In the state capital alone, the last three years
sales and the region overall as one of Germany’s five highest
have seen building permits issued for more than 1,500 apart-
turnover retail locations. Over-the-counter sales are expected
ments in keeping with the framework of the Housing Concept
to reach € 6.4 billion in 2015. Despite competition from the
2025. H
annover’s regional residential property market is
internet, the city centre and the major shopping centres in the
primarily shaped by regional providers and demand (above all
region continue to attract many shoppers.
for private households). During 2014 the region experienced a
Hannover’s top locations in and around Kröpcke have not
trade in apartments and housing totalling around € 1.64 billion.
experienced a downswing: current rent turnovers and the development of rents and yields are good. Additional demand for
outlet space is being driven above all by international chains
and investors.
Residential: The State Capital and some adjacent municipalities continue to experience population growth. In 2014, the city
grew by an additional 5,000 inhabitants. The residential property market in Hannover is characterised at present by demand
outstripping supply with the concomitant dynamism in building
€ 1.64 billion
Trade volume residential
properties 2014
The square in front of the New Town Hall (New Rathaus) was recently refurbished by landscape architect Kamel Louafi. An architect’s competition is currently in progress for the
former Maritim Grand Hotel am Friedrichswall, opposite. The facade of the building is to be restructured. In addition, the investor is planning an extra floor on the roof to provide space for a panoramic restaurant. The neighbouring former Volkshochschule (adult education college) is undergoing full refurbishment by the BAUM Unternehmensgruppe,
including partial demolition and conversion. A particular challenge is to retain part of the medieval city wall, integrated within the existing building’s structure.
HANNOVER REGION LOCATION
The Kommunalprojekt Privatepublicpartnerships GmbH is investing 18 million Euros in a five storey brick-faced new hotel on the Hamburger Allee. Scheduled to open in
2016 as the Star Inn Hotel, it will offer around 180 rooms. The Star Inn-Hotels GmbH of Regensburg already operates seven hotels situated in the inner city areas of major
Germany cities. The winning design in the architects' competition was submitted by Sarstedt-based architectsKIEFER + KIEFER.
Increasing tourism: welcome to Hannover
Both individualised and design-oriented concepts as well as
In the last 10 years, Hannover has ramped up its tourism mar-
larger organisations are increasingly positioning themselves in
keting. New conference centres have been built, more events
the Hannover market, and slowly changing that market. Over
attracted. The outcome is that in the last few years tourism
the medium to long term market players think that Hannover
has developed very positively. In 2014 the number of overnight
offers sufficient potential for new hotel project developments.
stays reached 2.08 million, compared with just 1.24 million in
As evidenced by the developments seen over the last two years
2001. Hannover now counts more overnight stays than it did in
and current projects in Hannover’s hotel property market.
the year of EXPO 2000. City and culture tourism independent
of season and a constant share of business travellers mean
Budget design hotels – consolidation and fresh starts
that over the year bed occupancy rates in Hannover are good on
Motel One, a budget hotel chain, sold nine of its first genera-
average. Between 2009 and 2014 the occupancy rate climbed
tion owner-operated hotels at the end of 2014. The new owner
significantly from about 53 % to almost 60 %, touching 59 %
is the French FDM Management company, which is also contin-
in 2014.
uing to operate its hotel in Hannover-Lahe offering 74 rooms
under its Première Classe brand.
Climbing demand
Experts and market participants think that demand will con-
New build projects confirm vibrancy
tinue to grow due to the increasing numbers of overnight stays.
Today’s trend towards budget and design-oriented hotel chains
Overall, the number of beds available, around 13,500, is signif-
is underlined by two new building projects. In September, the
icantly higher than the level available even during EXPO 2000
prizeotel opened at Hamburger Allee 50. On an area of around
(plus 2000 beds). Since 2011 the number of beds has stagnated
6,400 m 2 the hotel offers 212 rooms with designer interior
while the number of hotels has dropped slightly. Businesses
fittings in the 2-star-plus class. This development will be joined
have grown on average, with chain and brand hotels increasing-
shortly by the planned new build of a Star-Inn-Hotel in the im-
ly displacing smaller, owner-operated one-off operations.
mediate neighbourhood, at Hamburger Allee 65-75. This 3-star
hotel will offer 179 new rooms.
The prizeotel budget design hotel chain opened its new 212 room hotel in September 2015 on the Hamburger Allee not far from Hannover central station. The
hotel interior is designed by New York star designer Karim Rashid, who describes his style as “blobism” – the world as (colourful) blobs. On the former IBM site,
the Bremen building company Weserbau has also invested in residential buildings.
Beacon on the Friedrichswall
Towards the end of 2014, the Maritim chain announced the sale
to attract above all young customers from the business field,
business travellers and technicians/fitters.
of the Maritim Grand Hotel opposite Hannover’s New City
Hall. The Maritim chain will no longer be present in Hannover
city from early 2016 onwards, and will focus its activities in
€ 150 million investment turnover with hotels since
2013
the area at the Maritim Airport Hotel in Langenhagen. In 2009
Not only Germany as a whole, but in and around Hannover in
the company sold its operation on the Hildesheimerstraße to
particular, the investment market for hotels has picked up
Dormero.
speed. Since early 2013 the many transactions add up to a total
of around € 150 million investment turnover. The lion’s share
The Grand Hotel opened in 1965 as the 280 room Hotel Inter-
comprising the Maritim Grand Hotel and the Holiday Inn
continental. The sale and planned refurbishment by the new
resort in Langenhagen. Investors are particularly interested in
owner represents the chance to upgrade and reposition this
properties with high room numbers.
prominent location on the Friedrichswall. An architects’ competition is currently in progress.
Hotel market: investors recognise the potential
The German hotel market is developing positively: operators
Sites with individualised concepts
and investors have recognised the potential offered by hotels
Hannover’s hotel market will, however, continue to be lively in
as an asset class as part of their portfolio diversification. Just
the future with many niche offers: the Dobler group based in
as for other asset classes: the high demand in A-locations has
Göppingen intends to convert the former Deutsche Post admin
knock-on effects in B and C locations. This is benefiting loca-
building on the Gradestraße 22 into a designer budget hotel
tions like Hannover which over recent years has been able to
or boarding house. This will involve the 70’s building being
steadily increase the number of overnight stays in the tourism
stripped to its barebones to create an industry-loft style. Each
sector by providing quality offers for city tourists and business
room will have a corner kitchen, giving the guests the choice of
travellers.
either a mini bar or self catering. The Cookotel label is intended
The elegant design by Meili, Peter of Switzerland stands out with its anthracite-coloured concrete facade and provides a total of 5,300 m 2 space, of which 1,400
m 2 exhibition space, to create new opportunities for the Sprengel Museum Hannover. The space concept includes 10 generous rooms of various dimensions all with
natural light from above, complemented by three oases of peace, so-called "loggia", looking out over the Maschsee. There is also a major hall and a spectacular
stairway creating a spatial experience of the very special kind.
Investing in culture, exhibitions and congress
infrastructure
is one of Germany’s largest classic concert halls. The renovation work, costing around € 7 million is mainly to improve the
Many international trade fairs hosted in Hannover create global
building’s appearance and the acoustics of the Kuppelsaal
scale ideas with their innovative technologies and new products.
itself, is scheduled for completion by end January 2016. Parts of
The Deutsche Messe AG has itself invested around € 55
the Kuppelsaal’s historic facade are also being comprehensively
million in new exhibition halls 19/20 (creating approx. 14,300
refurbished.
m exhibition and congress space). The building was finished
2
in spring 2015 after an 18 month building period. The exhibi-
New stand-out projects for leisure and sport
tion location will be able to offer better coverage of the MICE
In December 2014, following conversion and refurbishment
segment (meetings, incentives, conventions, events) with the
lasting several months, the former Multiplex cinema in the
new hall. Fairs and congresses can be grouped in the 225 metre
Nikolaistraße reopened its doors. The investor already operates
long, 85 metre wide hall, to provide events with tailor-made
premium class cinemas in Berlin, Frankfurt, Cologne and Munich
exhibitions.
– with Hannover now host to the largest of them all: the Astor
Grand Cinema. The refurbishment of the property represents
The extension of the Sprengel Museum Hannover marks
an investment of around € 9 million and provides around 2,200
the completion of one of Hannover’s largest cultural building
seats in 10 cinemas.
projects of recent years. The Museum for Modern Art, focusing
in particular on the 20th century, opened its new extension
Work started in July on the site of the Eilenriede stadium to
(6,100 m 2) on the Maschsee lakeside promenade in September
build Hannover 96 football club’s new sports centre for up
2015. The facade stands out with its partially polished concrete
and coming talents. The professional division of the Bundesliga
facade. The extension means more works of art can be exhibit-
team is investing a total of € 17 million in a new building for the
ed to the general public and objects previously stored outside of
sports centre for its young football talents. Part of the project
the museum can now be kept on site for instant availability.
involves restructuring the existing sports facilities and refurbishing the southern part of the main stadium, a listed structure
Work on renovating the historic Kuppelsaal hall of the
built in 1928. Everything is scheduled for completion in time
Hannover Congress Centre (HCC) commenced in mid 2015. The
for the 2016/2017 season. For its recreational sport activities
focus of work is the Kuppelsaal itself, which with its 3,600 seats
the club will also be building a new sports centre with work
commencing in 2016. The plan is that by 2017 a new building
investors having no interest. Furthermore 2013 was definitely a
complex providing premises for club sports, admin and various
successful year, where above all impressive retail transactions
sport fields will be ready not far from the Stadionbrücke bridge
took place.
over the river Ihme. Hannover 96 e.V. will be investing around €
8 million in that location.
The strongest asset class in 2014 was that of office properties,
making up a good 40 % of the transaction volume. The share
Investment market:
of retail properties fell from almost 70 % (2013) to about 30 %
Downturn due to shortage of supply
(2014). The share of logistics properties of these transactions
On the investment market, the dynamic developments within
remained relatively constant at around 12 %.
submarkets are easily explained. Investors are increasingly
interested in core properties at B-locations. The prices of
Typical for B-markets: medium-sized properties of between 20
A-locations are considered excessive in part; the prospects for
and 50 million were the strongest size category in 2014. As a
yields in B-cities appear more attractive. The Hannover market
rule this size category has the most offers. An exception in 2013
can supply offers in the mid-volume sector. This means it is
was provided by two large-scale properties: the Kröpcke-Center
mainly attractive to national investors, because international
in Hannover and the Leine-Center in Laatzen, each of which
players generally have a preference for larger volume properties
comprised values in the hundred million Euro range. There were
for their investments.
no transactions of this scale in 2014.
Hannover is profiting from a global increase in investment
Around 14 % of the investment volume last year was due to the
pressure, which is forcing investors to consider B-locations.
hotel market, above all dominated by the sale of the Maritim
In 2014 the market in Hannover was definitely of interest for
Grand Hotel. Demand is presently high amongst investors for
foreign investors, even though there is a lack of offers where
hotels which often represent an alternative investment and
major projects are concerned. Overall, a comparison of 2014 and
option for portfolio diversification.
2015 shows a downturn in investment volume of around 38 %.
The reasons are mainly due to the lack of offers and less due to
The Eilenriedestadion is a historic sport arena, and is now almost 100 years old. The sports facilities are being doubled in size to almost 135,000 m 2. The Bundesliga division of Hannover 96 is investing € 17 million of its own equity in the conversion of the listed stand building, the building of two new stands with a capacity of
initially 2,500 additional playing fields and a three-storey centre for young talents. sp.a.Schulze + Partner Architektur of Hannover are responsible for the project
design.
There is no specifically dominant type of buyer – in 2014 inves-
The Ihme-Zentrum has a new owner. The creditors of the pro-
tors of all types were equally strongly represented, including
ject companies of the Carlyle Group, insolvent since 2009, which
owner-occupiers, banks/insurances, asset managers and
initially intended to revitalise the 40-year-old complex with its
property companies.
residential, office, retail and parking areas to the tune of € 200
million, ultimately collected € 16.5 million at the foreclosure
Foreign investors were, however, less active last year with
auction in February 2015. The new owner, Projekt Steglitzer
only 13 % of overall volume. This is primarily due to the lack
Kreisel Berlin Grundstücks-Gesellschaft, a property company
of properties on offer. Foreign investors traditionally prefer
of the Newtown-Group of Berlin, now owns around 83 % of the
l arger-scales and therefore, outside of A-cities, in particular
massive property. Details of the new investors’ plans with the
retail properties.
major property are not yet available.
Promising start to 2015 – major retail deals
The second half-year of 2015 started with a large-scale retail
The first six months of 2015 have already seen more than €
transaction. The international property investment firm Savills
150 millions of investment, with the comparable six months
Investment Management in collaboration with its Luxembourg
of 2014 being somewhat weaker (€ 128 million). In early 2015
management company acquired the Planetencenter in
retail properties had a share of almost two thirds, making it the
G arbsen, a specialist retail centre near Hannover for the
strongest asset category.
E uropean Retail Fund (ERF), on behalf of institutional investors.
Aurelis Real Estate invested into two existing properties in the
This is not only the result of the transfer of the GALERIA-
region including the acquisition by the Eschborn-based com
Kaufhof-portfolio. Two other A1 retail properties changed
pany of a 23,500 m 2 hall adjacent to the Hannover International
owners. The property at Bahnhofstraße 6 (anchor tenants:
Exhibition Grounds previously used by Edeka.
Esprit, Desigual and Mango) was acquired by Deka Immobilien
for a Sparkassen fund. The Neues Erdmann-Haus in the Große
Packhofstraße (future anchor tenant: Reserved) was acquired
by the Aachener Grundvermögen shortly before the cornerstone
laying ceremony.
The Hanomag grounds in the Linden district of Hannover is a successful example of the revitalisation of a brown field site. In recent years office, retail and
residential areas have been created here on a large scale, partly in the original industrial buildings.
Investment market in Hannover Region 2014
€ 182 million
Office and
commercial buildings
€ 127 million
Retail properties
€ 62 million
Hotels
€ 54 million
Industry &
logistics
€ 25 million
Other
Total:
€ 450 million
Selected transactions 2014/2015
Property name and/or
address
Building area
(land area)
in m 2
Quarter
Year
Seller
Purchaser
Investor type
Co 4zig (former VHV HQ
Constantinstraße)
Q2
2014
Foreign investor
group
Schramm & Schoen
AG
property PLC
31,437
Sparkasse Hannover
(Aegidientorplatz 1)
Q4
2014
Sparkasse
Hannover
BAUM
Unternehmensgruppe
Project developer
14,000
Authority high rise
(Rundestraße / Hamburger
Allee)
Q1
2015
HSBC Trinkaus &
Burkhardt Immobilienfonds Nr. 9
Hannover 1 KG
WealthCap
Closed fund
19,645
Kurierhaus
(Georgstraße 52)
Q2
2015
Quantum
Immobilien AG
meravis
Wohnungsbau- und
Immobilien GmbH
Asset manager
7,838
Galerie Luise
Q2
2014
LBP Luxcco GP1
Hannover S.á.r.l. &
Co. KG
Accom GmbH & Co.
KG (AIH)
Asset manager
13,464
Fugesches Haus /
Drachentöterhaus
Q4
2014
Georgstraße
Objekt 1 GmbH &
Co. KG
Alte Leipziger
Lebensversicherung
a. G.
Insurer
7,680
GALERIA-Kaufhof
Ernst-August-Platz &
An der Marktkirche
Q2
2015
Metro AG
Simon Property
Group/Hudson’s Bay
Company (HBC)
Owner-occupier
30,000 /
28,000
Neues Erdmann-Haus
Q2
2015
Development
Partner AG
Aachener
Grundvermögen
Special fund
4,000
project development
logistics centre Garbsen
Q1
2014
GPG Garbsen
project development company
BAUM
Unternehmensgruppe
Project developer / (130,000)
Principal
Logistic property
Hägenstraße
Q2
2014
SEB ImmoInvest
Logicor Ltd.
Asset manager
16,018
project development
logistics centre Kronsberg
(extension area)
Q2
2015
City of Hannover
Verdion GmbH
Project developer
(70,000)
Logistics property
Karlsruher Straße, Laatzen
Q2
2015
Deutsche Messe AG
aurelis Real Estate
GmbH & Co. KG
Asset manager
23,500
Crowne Plaza Schweizerhof
Hannover
Q1
2014
Fair Value REIT AG,
BBV Fonds 06
Unternehmen des
Hotelbetreibers
Owner-occupier
19,460
Maritim Grand Hotel
Hannover
Q4
2014
Maritim Hotelgesellschaft mbh
Friedrichswall GmbH
Project developer
8,500
Première Classe Hotel
(former Hotel “Motel One”)
Q1
2015
Motel One Group
FDM Management
REIT
1,250
Office
Trade
Logistics
Hotel/Leisure
Map / current projects in submarkets
26
24
25
3
13
11
1
17
16
5 4
14 9
22
12
7
10
15
19
20
2
6
23
27
18
21
1 km
2 km
3 km
N
8
Hotel
1
2
3
4
5
Office
6
Cookotel
7
Hotel am Friedrichswall
8
Première Classe Hotel
prizeotel
Star Inn
9
10
Deloitte
Deutsche Hypo
Deutsche Rentenversicherung Braunschweig-Hannover
Fachgerichtszentrum
(combined court centre)
Sparkasse Hannover
Residential
14
15
16
17
18
Fairs, congresses and culture
Logistics
19
24
Bredero residential high rise
Kleefelder Hofgärten
20
21
Student accomodation „The Fizz”
VIER
zero:e park
22
23
HCC Kuppelsaal
Young talent centre Hannover 96
Exhibition hall 19/20
Deutsche Messe AG
25
26
27
DB Schenker logistics centre
logistics park Hannover-Garbsen
REWE fresh-goods logistics centre
Verdion logistics centre
Astor Grand Cinema
Sprengel Museum
Airport
Hannover Exhibition grounds
Einzelhandel
11
12
13
Möbel Höffner
Neues Erdmann-Haus
Planetencenter Garbsen
Main station/intercity
20 STANDORT REGION HANNOVER
Prime site, prime location: the grounds of the former AOK building at the Pferdeturm crossing offer room for up to 53,000 m 2 gross floor area offices. The site opposite of a former
car dealership also has sufficient space for around 44,000 m 2 gross floor area offices. The site has a tram stop and is directly on the Messeschnellweg express way. This artist’s
impression gives an idea of what the town’s eastern gateway could look like in the future.
OFFICE PROPERTY MARKET 21
Moving again
Hannover is one of Germany’s key property markets. The market in Hannover has the largest available area after the
seven A-locations. In the last five years a total of around 660,000 m 2 office space was transacted, on average approx –
almost double the area average area of B-cities.
The turnover of Hannover’s office property market underwent
The market of 2014 was not dominated by the traditionally strong
a clear revival compared with a weak previous year, and for
owner-occupiers. The region’s business promotion agencies, based
2015 overall turnover is expected to remain stable to marginally
on market player details, registered around 88,000 m 2 purely
higher, with city centre rents expected to climb slightly.
rental turnover, 80,000 m 2 of which in the state capital. The rental
turnover during 2014 represented around 75 % of overall turnover
Moderate result in 2014
and was therefore up 17 % year-on-year compared with 2014. Some
Overall turnover of 117,000 m 2 from new lets and acquisitions for
25,000 m2 were acquired or built by companies in the state capital
owner-occupation is the sum-up of market players at the end
for own use, with a further 5,000 m 2 in the smaller office markets of
of 2014. The downward trend of the last two years therefore
the cities of Garbsen, Laatzen and Langenhagen.
appears to have stopped: overall turnover climbed again compared with 2013 by around 11.5 %.
Nonetheless: the total turnover was still approximately 10 % below
the average of the last 5 years (130,000 m2). In the past, good years
for Hannover have been those dominated by major owner-occupied
properties or project developments for individual major tenants –
deals which were missing in 2014.
City and city periphery achieve same turnovers
The central office submarkets of the city and city periphery (including major arterial roads, Podbielskistraße, Hildesheimer Straße and
Vahrenwalder Straße) reported approx. 40,000 m2 turnover. Compared with 2013, the city achieved a plus of 5,000 m2 (plus 15 %).
Prime rents continue upwards
At the end of 2013 the prime rent was still at 14 €/ m 2. Towards the
middle of 2014 market participants confirmed this value. 2014 end-
Deutsche Rentenversicherung built a new administration building in Laatzen
for € 67 million. Two rectangular blocks, slightly offset and joined by a
glazed link. The ground floor has catering, library and conference rooms with
up to five storeys above providing space for light single to six-person offices
and a variety of conference rooms. Struhk Architekten Planungsgesellschaft
mbH was responsible for planning. Tenants took up occupation in March
2015.
ed with prime rents climbing slightly to 14.20 €/ m2. 2015 is also not
expected to produce major leaps, but a slight improvement to 14.30
€/ m 2 is already apparent at the middle of the year. Prime rents in
the city periphery will be stable during 2015 at last year’s level of
approx. 10.40 €/ m2.
22 OFFICE PROPERTY MARKET
Higher rents are always achievable for top quality new builds and
Total office stock 2009 to 2015*
old buildings refurbished to a high standard in all areas compared
6,000
to the reported prime rents – with maximum rents 6 in the city
centre and on city centre peripheral locations reaching around
5,000
Reflecting projects currently under construction or just concluded
in the city, Hannover property players agree that prime rents will
continue to develop sustainably in all locations over the coming
two years. The fact that prime rents did not climb significantly
in the past had less to do with the location’s potential but was
rather dependent upon the lack of supply available of high quality
In thousand m² MF-G
18 €/ m 2 during 2014 and in the first six months 2015.
4,000
3,000
2,000
1,000
spaces in central office locations.
2 0 1 5 ***
2014
2013
2012*
2011
2010
2009*
0
■ Office market Hannover** ■ of which Hannover city
* Year of a total office space survey by bulwiengesa AG and Baasner Stadtplaner GmbH
** With Garbsen, Laatzen and Langenhagen
*** Forecast
Source: bulwiengesa AG
Total office employees
2009 to 2016 in thousand
Following the departure of the Volkshochschule, the former main building
on Theodor-Lessing-Platz, opposite the Neue Rathaus, was acquired by the
BAUM Unternehmensgruppe. The company plans to refurbish the building to
create three 3,500 m 2 offices, medical suites, high quality city apartments
and around 800 m 2 catering, gastronomy and retail outlets on the ground
floor by 2017.
14.30 €/m 2
Year
Hannover
city
Ratio**
Hannover
Region***
Ratio**
2009
155.5
40.8
66.0
27.6
2010
156.9
40.9
63.2
26.5
2011
159.5
41.0
64.8
26.7
2012
163.3
41.4
65.7
27.0
2013*
165.3
41.3
67.0
27.0
2014*
168.7
41.8
67.6
26.9
2015*
170.6
42.0
68.2
26.8
2016*
172.3
42.1
68.7
26.7
*Estimate or forecast based on reports provided by the Lower Saxony state office for statistics
**Ratio of office employees to total workforce in %
***Region without state capital
Source: RIWIS@bulwiengesa AG based on reports provided by the Lower Saxony state office for statistics
and communications technology Niedersachsen (LKSN)
Prime office rent
in the city 2015
6 The maximum rent achieved is the first maximum registered nominal net rent excluding utility bills, independent of local sub-markets, qualities and size of the let area, as concluded during the respective reporting
period. This not only takes into account letting contracts concluded but also includes letting contract extensions which are not part of letting turnover
Hannover office market completions 2009 to 2017
80
70
In thousand m 2
60
50
40
30
20
10
■ New build completions Hannover
■ Refurbishments Hannover
2017*
2016*
2015*
2014
2013
2012
2011
2010
2009
0
■ New build completions Region
* Based on the spring forecast of bulwiengesa AG: Hannover Region survey; details provided by market players: data status Q3/2015
O ffice properties 2014 strongest asset class for
investments
Hannover remains an interesting option for investors from both
at home and abroad because of its low market risk and good
The office properties represent the strongest asset class in 2014
growth prospects, especially those looking for high quality core
with over 40 % of the transaction volume. In Hannover an abso-
properties. The city is benefiting from the global increase in
lute trading volume of approx. € 182 million was registered. The
investment pressure, which is forcing investors more into
investment risk continues to be low because of relatively low
German B-cities. Retail properties and office properties
vacancy rates (5.7 % compared with 6.8 % average of A-cities)
continue to enjoy high demand levels amongst investors as
and the high level of market transparency.
sustainable investments.
Over the last 5 years Hannover has enjoyed double digit growth
rates in particular for employees in the important finance and
insurance industries. The associated demand for office space is
reflected in the office property market and is also seen in the
level of investor interest in Hannover.
S peculative new builds absent
Drop in vacancies
Market players share the opinion that speculative new build
projects play practically no role in Hannover because new office
spaces being built boast a high pre-letting ratio. Completions in
The Mecklenburgische Versicherungs-Gesellschaft a.G. intends to move into
its new build (5,600 m 2, of which 4,000 m 2 own use) in early 2016 on the
Karl-Wiechert-Allee.
the past and years ahead and the continuing low vacancy rates
confirm this impression.
Main tenant of the nine-storey office building on the Aegi erected by the Hamburger Quantum Projektentwicklung and designed by BKSP is auditing firm Deloitte
& Touche with approx. 350 employees. The building was completed in early 2015
Despite the high level of new building activities, the pace of
The Prinzenareal (6,900 m 2), an investment of the VGH
demolitions means that during 2014 the vacancies actually
Versicherung, has been fully marketed and will be available for
continued to reduce in absolute terms. The vacancy ratio
tenants from end 2016.
closed down at 5.7 %, ten base points lower than even in 2013.
In comparison with A-locations (vacancies 2014 on average 6.8
The refurbishment of the Sparkasse Hannover HQ will also
%) and Germany’s largest regional locations (vacancies 2014
have been completed by early 2016 (27,500 m 2). The exterior
on average 5.9 %) this value can be considered as being low to
work on the building had almost been completed by Q2 2015.
moderate.
2015: good prospects for turnover and prime rent
M arket dominated by the state sector, finance and
insurance industry
Players in the Hannover market anticipate that the turnovers in
2015 will be stable or slightly up year-on-year. Office space turn-
The strongest demand for office properties continues, as in
over in the first six months 2015 has already reached 55,000 m 2
previous years, to be driven by the finance and insurance indus-
for letting only, and the previously verified prime rent has already
try and the state sector. In the city recent completions include
topped the previous year’s value.
project developments on the Osterstraße for principal tenant
Deutsche Hypo (13,200 m 2 office, 1,200 m 2 retail), and the
project of Quantum Immobilien AG for auditors Deloitte (10,500
m 2) on Aegidientorplatz, completed end 2014 and early 2015
respectively.
The new build for the Deutsche Rentenversicherung Braunschweig-Hannover in Laatzen (18,500 m 2) is the largest project
for an owner-occupier completed in 2015. The new build for the
Mecklenburgische Versicherung AG on the Karl-Wiechert-
Allee is progressing well (5,600 m 2, of which 1,600 m 2 to let),
with the leased area (the building is intended mainly for own
use) already reserved prior to completion in spring 2016.
The revitalisation of the HANOMAG grounds is nearing completion. Specialist
medical suites opened in the “Director’s villa” in mid 2015.
7
Based on an updated full survey of office space inventory and vacancies by bulwiengesa AG end 2012/early 2013. The forecast and model calculations of bulwiengesa AG are based on the total inventory surveys of 2009
and 2012.
Sparkasse Hannover is refurbishing its inner city high-rise HQ, built in the 1970s. The redesign respects the original concept, with an overall area of around
36,000 m 2 GFA. The design is by schulze & partner.architektur, Hannover. The most obvious change, visible to all since mid-2015 after removal of the scaffolding, is the new silvery facade, replacing the original chocolate-brown facing.
At the end of 2015 the work on refurbishing and modernising the Sparkasse Hannover HQ on Raschplatz will have been completed at a cost of provisionally
€ 110 million. The Sparkasse can then leave the former HQ of the Kreissparkasse Hannover at Aegidientorplatz 1 – (Aegi 1). The bank will then only remain as
tenant of a self-service outlet. The 14,000 m 2 office and commercial building has been acquired by the BAUM Unternehmensgruppe (the picture shows an early
artist’s impression).
New builds – Completions / nearing completion*
No.
Building
Address
Investor, developer,
owner
Space MF-G
Completion
1
Bundesagentur
für Arbeit
Regionaldirektion
Niedersachsen-Bremen
Röpkestraße 3
Rahlfs Immobilien GmbH
4,000 m 2 offices
Q4/2014
2
Office and entrance building
Continental AG
Jädekamp 30
Continental AG
1,700 m 2 offices
Owner-occupied
Q4/2014
3
Office and commercial
building Kirchrode
Tiergartenstraße 118
Großer Hillen 2–4
Gundlach GmbH & Co. KG
750 m 2 offices
380 m 2 surgery
1,700 m 2 retail
1,200 m 2 residential
Q4/2014
4
Deutsche Hypo
Osterstr. 31
Bertram Projektmanagement GmbH
13,200 m 2 offices
1,200 m 2 retail
Q4/2014
5
expert AG
Langenhagen
Bayernstr. 4
expert
4,000 m 2 offices
Owner-occupied
Q4/2014
6
Niedersächsische Wach- und
Schließgesellschaft
Vahrenwalder Str. 136
Niedersächsische Wachund Schliessgesellschaft
Eggeling & Schorling KG
2,700 m 2 offices
2,700 m 2 storage space
Owner-occupied
Q4/2014
7
Deutsche
Rentenversicherung
Braunschweig-Hannover
Laatzen,
Lange Weihe 2
Deutsche
Rentenversicherung
18,500 m 2 offices
Owner-occupied
Q1/2015
8
ZAG ZeitarbeitsGesellschaft
Leo-SympherPromenade 65
Edgar-Scheibe-Straße 1
ZAG ZeitarbeitsGesellschaft mbH
4,140 m 2 offices
Owner-occupied
560 m 2 retail
Q1/2015
9
Deloitte
Aegidientorplatz 2 a
Quantum Immobilien AG
10,500 m 2 offices
Q2/2015
10
Tiergarten-Carré
Tiergartenstr. 114–116
950 m 2 offices
650 m 2 retail
550 m 2 surgery
660 m 2 residential
Q2/2015
11
Office project Südbahnhof
Porzellan Weitz
Anna-Zammert-Str. 34
Weitz GmbH
1,800 m 2 office and
storage space, Partially
owner-occupied
Q3/2015
12
Schmid-Gruppe
Anna-Zammert-Str. 27
ISH GmbH
3,150 m 2 offices
Q4/2015
13
Fachgerichtszentrum
Leonhardtstr. 15
FUBOS Beteiligungs GmbH,
a company of the LHI
Leasing GmbH
11,900 m 2 offices
Q3/2015
14
Volkshochschule
Hannover
Am Hohen Ufer 3
City of Hannover
7,000 m 2 offices /
seminar
Owner-occupied
Q3/2015
New builds
Completed
In planning
Under construction / construction preparation
Mid-term planning
* Figures refer to maps on pages 32 and 33.
New builds – under construction*
No.
Building
Address
owner
Space MF-G
Completion
15
Mecklenburgische
Versicherung
Berckhusenstr. 150
Mecklenburgische
VersicherungsGesellschaft a. G.
5,600 m 2 offices,
of which 4,000 m 2
owner-occupied
Q1/2016
16
Neues Erdmann Haus
Große Packhofstr. 34/35
Development Partner AG
Aachener Grundvermögen
Kapitalverwaltungsgesellschaft mbH
2,600 m 2 retail
1,400 m 2 offices
Q1/2016
17
Office projects at
Planetencenter
Planetenring/
Auf der Horst, Garbsen
Rahlfs Immobilien GmbH
4,000 m 2 offices
Q4/2016
18
Gesellschaft für Bauen
und Wohnen Hannover
mbH (GBH)
Klagesmarkt/
Otto-Brenner-Straße
und Wohnen Hannover
mbH (GBH)
4,000 m 2
owner-occupied
Q4/2016
19
Prinzenareal
Prinzenstr. 19–23
VGH Projekt GmbH & Co.
Prinzenareal KG
6,864 m 2 offices
Q4/2016
New builds – in planning*
20
MARQ Marstall Quarree
Am Marstall
STRABAG Real Estate
2,700 m 2 offices
900 m 2 gastronomy /
retail
300 m 2 residential
Q2/2017
21
Marstall West
Am Marstall
HOCHTIEF Hamburg GmbH,
und Wohnen Hannover
mbH (GBH)
750 m 2 offices
Q2/2017
22
Office and residential
project Südbahnhof
aurelis
Anna-Zammert-Str. 5
aurelis Real Estate GmbH
1,900 m 2 offices
Q4/2017
23
Office and residential
project Groß-Buchholz
Podbielskistraße 382
STRABAG
Real Estate GmbH
6,500 m 2 offices
300 m 2 retail
Q4/2017
24
WABCO Engineering
Innovation Center
Am Lindener Hafen
WABCO
Octava GmbH
11,500 m 2 offices/
laboratory, partially
owner-occupied
Q4/2018
New builds – mid-term planning*
25
Office project Pferdeturm (formerly AOK)
Hans-Böckler-Allee 30
City of Hannover (owner)
10,000 m² GFA offices
(1st phase; max. about
53, 000 m² GFA)
26
Office project
Pferdeturm
(formerly car dealership)
Hans-Böckler-Allee 49
City of Hannover (owner)
12,500 m² GFA offices
(1st phase; max. about
44,000 m² GFA)
27
City Gate Nord
project development
HRG & Delta Bau GmbH
& Co. KG
28,000 m² GFA office/
retail
28
Deutsche Bahn AG
Rundestraße/
Hamb urger Allee
(ehem. ZOB)
KÖLBL KRUSE GmbH
30,000 m 2 GFA offices
The new build for the Deutsche Hypo in Hannover, at a cost of € 55 million, a joint venture of the Hannover-based Projektentwicklung Bertram with LHI Leasing, Pullach, was
occupied in December 2014. 400 Deutsche Hypo employees and 100 colleagues from the Nord/LB now use 13,500 m 2 office space. The building on the corner of Osterstraße and
Röseler Straße is a design by Kleihues & Kleihues of Berlin. The building is owned by HUK-COBURG, also a Nord/LB subsidiary. Deutsche Hypo has a 15-year tenancy agreement.
OFFICE PROPERTY MARKET
Refurbishment – completions*
No.
Building
Address
owner
Space MF-G
29
Umspannwerk
(former electric power
substation)
FR L’Osteria GmbH,
1,200 m 2 offices
Hannover Sysgastro GmbH 1,050 m 2 gastronomy
Completion
Q4/2014
Refurbishment – under construction / construction preparation*
30
building Georgstraße
Georgstr. 44
Talanx Immobilienmanagement GmbH
2,400 m 2 offices
1,100 m 2 retail
Q1/2016
31
Sparkasse Hannover HQ
Raschplatz 4
Sparkasse Hannover
27,500 m 2 offices
Owner-occupied
Q1/2016
32
Administration building
Region Hannover
Weinstraße 2–3
Region Hannover
3,000 m 2 offices/
praxis
Q2/2016
Refurbishment – in planning *
33
building Aegi 1
Aegidientorplatz 1
BAUM
Unternehmensgruppe
11,500 m 2 offices
2,500 m 2 retail /
gastronomy
Q4/2016
34
Office, residential and
commercial building
(former Volkshochschule)
TheodorLessing-Platz 1–2/
Ebhardtstr. 1
BAUM
Unternehmensgruppe
3,500 m 2 offices,
Praxis and/or
residential
800 m 2 retail /
gastronomy
2017
35
üstra HQ
Am Hohen Ufer 6
üstra Hannoversche
Verkehrsbetriebe AG
5,700 m 2 offices
owner-occupied
Q2/2017
36,000 m² offices
owner-occupied
Q4/2018
Refurbishment – medium-term planning*
36
Federal Criminal Investigation Department
and Forensic Science
Institute
Am Waterlooplatz
State of Lower Saxony
Refurbishments
Completed
In planning
Under construction / construction preparation
Mid-term planning
New “Lister Blick” office building on the Podbielskistraße opened in June 2015: the temporary employment agency ZAG Personal & Perspektiven occupies
three quarters of the total area of 4,700 m 2. 120 employees comprising management, sales, administration and the ZAG foundation will have offices here. The
ground floor of approx. 560 m 2 is rented by the ZAG foundation to Denn’s Bio Supermarket chain.
The sub-zones of Hannover’s office property market
(see also map office projects, page 32):
The Hannover office market, comprising approx. 4.9 million m2 lettable office space (MF-G) comprises the city of Hannover and
the neighbouring cities of Garbsen, Langenhagen and Laatzen which border the state capital directly to the north and south, and
to which it has close functional ties:
Map
Sub-zones, locataion
City centre: bordered by the city ring road. This area comprises Georgstraße, Georgsplatz, Raschplatz, Friedrichswall,
Aegidientorplatz and Schiffgraben.
City centre periphery locations and arterial roads: High-quality office locations are situated in the north and
southeast of the city centre with the main traffic axes comprising Vahrenwalder Straße in the north, Podbielskistraße
in the northeast, Marienstraße/Hans-Böckler-Allee in the east and Hildesheimer Straße in the south and extends west
towards the HANOMAG area.
Office centre Karl-Wiechert-Allee: This location hosts the large sites and facilities of the Hannover Medical School
and the adjacent Medical Park, and in particular owner-occupied office complexes for groups involved in the finance,
insurance and tourism sectors.
Office centre Lahe: Location in the north-east of Hannover boasting excellent transport connections to the A 2 and
to the tram system. A number of rezoning and restructuring activities offer considerable scope for further developing
the potential at this location.
EXPO-PARK: High-quality office buildings oriented towards IT, design and media, partially comprising some of the
original buildings and open spaces constructed for the EXPO 2000 World Exposition. The buildings constructed on the
nearby Kronsberg (Kattenbrookstrift) are outstanding examples of modern architecture.
City of Garbsen: Office buildings concentrated around the centre of the city and the new Mechanical Engineering
Campus for Leibniz University. Outstanding transport connections including light rail transit, and direct proximity to
the A 2 and B 6.
City of Laatzen: Office buildings concentrated around the centre of Laatzen. Directly adjacent to the Hannover
E xhibition Grounds and the A 37/A 7 motorways, outstanding local public transport connections.
City of Langenhagen: Office buildings concentrated in the town centre and around the LRT station Langenhagen-
Mitte. Also outstanding transport connections to the motorways and the airport. Additional office properties in
Godshorn and Airport business parks.
Map / office projects
5
2
29
Lahe
27
23
Vahrenwalder Straße/
Brink-Hafen
8
6
15
26
24
25
22
Cityrand
1
12
3
10
11
EXPO-Park
1 km
2 km
3 km
N
7
New builds
Completed
1
2
3
4
5
6
7
8
9
Bundesagentur für Arbeit
Regionaldirektion
Niedersachsen-Bremen
10
11
Office and entrance building
Continental AG
12
Office and commercial building
Kirchrode
Deutsche Hypo
expert AG
Niedersächsische Wach- und
Schliessgesellschaft
Deutsche Rentenversicherung
ZAG Zeitarbeits-Gesellschaft
13
14
Under construction /construction
preparation
Planning, current
Mid-term planning
15
20
25
Deloitte
16
Tiergarten-Carré
17
Porzellan Weitz
Office project Südbahnhof:
Schmid-Gruppe
Fachgerichtszentrum
Volkshochschule Hannover
18
19
Mecklenburgische Versicherung
21
Neues Erdmann-Haus
22
Office projects at Planetencenter
Gesellschaft für Bauen und Wohnen
Hannover mbH (GBH)
23
Prinzenareal
24
MARQ Marstall Quarree
Marstall West
Office and residential project
Südbahnhof aurelis
Office and residential project
Groß-Buchholz
WABCO Engineering
Innovation Center
26
27
28
Office project Pferdeturm
(formerly AOK)
Office project Pferdeturm
(formerly car dealership)
City Gate Nord
Deutsche Bahn AG
Map // office projects (zoom)
28
18
31
13
20
35
21
16
14
30
4
Marktkirche
19
33
34
9
32
36
100 m
200 m
300 m
N
Refurbishment
Sanierung
Completed
Under construction /construction
preparation
29
30
Former transformer building
31
32
Office and retail building
Georgstraße
Planning, current
Mid-term planning
33
36
34
Sparkasse Hannover HQ
Administration building
Hannover Region
35
Office and retail building Aegi 1
Office project Friedrichswall
(formerly Volkshochschule)
üstra HQ
Federal Criminal Investigation
Department and Forensic Science
Institute
Partial spaces / locations
(see also p. 27)
City
City periphery
Office centres
Office centres Laatzen, Langenhagen
Airport
Exhibition grounds
Main station / intercity
Tram
City boundary
The Bahnhofstraße, between Kröpcke and the central station and the Niki-de-Saint-Phalle promenade below street level are the most highly frequented sections of Hannover’s A1
location. The new Apple store opened in the Bahnhofstraße in September 2014: famous fashion brands like Mango, Desigual and Esprit are also present here. The street below the
street focuses on gastronomy and smaller, sometimes less well-known “young fashion” labels.
RETAIL
BÜROIMMOBILIENMARKT
PROPERTY MARKET 35
Still very attractive
Georgstraße and Bahnhofstraße rank among the Top 10 most attractive shopping streets in Germany in 2015. Hannover
city centre is one of the country’s top retail locations. There is a high demand amongst investors for retail properties both
in Hannover’s city centre as well as for specialist and shopping centres in the surrounding area.
The Gesellschaft für Konsumforschung (GfK, consumer research
almost 170,000 m 2, overall the city centre has a retail area of
corporation) forecasts over-the-counter sales of around € 6.4
approx. 290,000 m 2.
billion in Hannover Region in 2015. This means Hannover Region
continues to rank within the top five of Germany’s municipali-
Retail sales in the city and the retail area share of the city, have
ties and cities with the highest turnovers.
a value - with respect to the city as a whole - of around 30 %:
this is an above average value when compared with other
German shopping cities. A further comparison with cities of
City centre: above average figures
The retail area of Hannover Region as a whole is estimated
a similar size, such as Bremen, Nuremberg, Essen and Leipzig
at around 2 million m 2. The retail space available in the state
shows that Hannover’s A1 locations generate considerably
c apital Hannover is some 880,000 to 910,000 m . Hannover’s
higher rents 9. Hannover boasts an outstanding retail centrality
top four locations (Bahnhofstraße, Georgstraße, Große Pack-
index and is actually ahead in this regard of even major much
hofstraße and Karmarschstraße) have a combined total of
larger cities such as Berlin, Hamburg, Cologne and Munich.10
2 8
Demand up again in 2015
The demand for areas in A1 locations rose in Hannover in early
TOP 5
Highest turnover
German
retail locations
8
9
10 11 2015 much more sharply than just one year previously – in the
first quarter alone, Jones Lang LaSalle registered around 4,100
m 2 turnover. As a comparison, over the last five years the total
turnover in Hannover’s city centre averaged around 11,000 m 2.11
According to estimates by JLL Retail, 2015 and Comfort, 2014
See also summary “BIG-10 shopping cities in Germany in a comparison", p. 32
GfK 2015: retail centrality index for Hannover city 2015 is 128.8, and that of the comparison cities is from 105.5 (Berlin) to 122.9 (Cologne)
See also Jones Lang LaSalle retail market summary Germany Q1/2015
36 RETAIL
PROPERTY MARKET
Retail sector structure of A1 location Hannover 2014/2015
Share of retail area as percentage
■ Others 11.6 %
■ Textile 28.2 %
■Sport / outdoor 1.9 %
■ Shoes / leather good 6.5 %
■ Stationery / books 1.9 %
■ Health / beauty 11.6 %
■ Home / house /
■ Jewellery / jeweller 7.4 %
fittings 4.2 %
■ Telecommunications / electronics
■ Gastronomy / food 20.8 %
6%
Source: JLL Retail 2015
BIG-10 German shopping cities in a comparison
City
Prime rent total
A1 location*
2015
Chain store quota
total A1 location
2014 in %
Top location
(A1 main shopping
street based on rent)
Pedestrian frequency
top location 2015**
(national ranking)
Munich
360
60.9
Kaufinger Straße/
Marienplatz
15,655 (1)
Frankfurt/main
310
72.7
Zeil
13,480 (2)
Berlin
300
64.1
Tauentzienstraße
7,680 (17)
Düsseldorf
290
81.8
Königsallee
4,775 (53)
Hamburg
275
61.7
Spitaler Straße
13,070 (5)
Cologne
255
67.7
Schildergasse
13,440 (3)
Stuttgart
250
59
Königstraße
8,265 (16)
Hannover
200
73.9
Georgstraße
12,525 (7)
Nuremberg
165
72.9
Ludwigsplatz/Hefnersplatz/Karolinenstraße
8,760 (14)
Leipzig
120
58.6
Grimmaische Straße
4,850 (52)
* For new let standard outlet, 100 m2 ground floor retail area, 6 m shop window, good floor plan, quality fittings. Where rental prices differ in different streets within A1 locations,
rent of highest evaluated street is named.
** S
urveyed on Saturday 21.03.2015, 13-14 hours
Source: Jones Lang LaSalle, Hannover Region
RETAIL
PROPERTY MARKET 37
Almost 100 years ago the French company PETIT BATEAU achieved success with its innovative babyware – bodies and romper suits with push-buttons on the
back. On the Osterstraße, in the new Deutsche Hypo building, the French company opened its shop with children’s fashion in 2014.
Prime rent tops 200 €/m 2 benchmark
quarter are active in the premium (18 %) and luxury sectors
In 2015 the prime rents in the top locations of Georgstraße, Bahn
(6 %) (see also Figure on page 39). Foreign chain stores now
hofstraße and Große Packhofstraße are set to climb a further
dominate the field.12
5 € per m 2 to touch the € 200 level. A medium value of around
145 €/m 2 is possible for larger areas. In the Karmarschstraße
Inner city retail remains attractive
rents have caught up with the prime values thanks to new out-
Despite competition from the internet, city centre shopping lo-
lets in the Kröpcke Center. On a 10-year comparison, prime rents
cations and major shopping centres in the region have retained
have risen by a good 25 %. In the BIG-10 comparison of top inner
their attractiveness. The leading sectors of textiles, health and
city locations in Germany, Georgstraße ranks 8th (see table).
beauty and gastronomy are the dominant players in A1 locations in Hannover (see Figure).
International chain stores still expanding
Agents and project developers have observed a strong demand from international chain stores and major groups for
retail space in Hannover. In 2014 new arrivals were for example
Apple, H&M label COS, Petit Bateau and Reserved in the
Ernst-August-Galerie mall. Arriving in autumn 2015 will be
Massimo Dutti, with Reserved moving into the Neues Erdmann-Haus in early 2016, in addition to its Ernst-AugustGalerie outlet in an A1 location. Overall, the share of retail area
used by chain stores is around three quarters, of which one
12 cf. JLL Retail 2015: expanding in Germany.
200 €/m 2
Prime rent in A1
locations 2015
38 RETAIL
PROPERTY MARKET
People lined up on opening day: the new Snipes store in the Georgstraße opened in April 2015. Best sellers include fashionable sports shoes, much liked by
younger customers. The brand also has an outlet in the Ernst-August-Galerie.
RETAIL
PROPERTY MARKET 39
Focus on Georgstraße
to evolve as the preferred site for luxury labels. At the end of
Hannover’s strongest A1 location enjoys stable high demand for
July 2015 the Munich fashion label Bogner opened its store in
outlet space, whereby the fluctuation is very low due to the lack
the L uisenstraße (440 m 2). The store (220 m 2) was previously
of available space. Activities during 2014/2015 were dominated
occupied by Terner Moden, a retailer with a long tradition for
by one deal above all: the Alte Leipziger Lebensversicherung A.G.
high quality fashion, which moved into Rathenaustraße 12, next
acquired the office and retail buildings at Georgstraße 10 and
to new arrival Scarosso, a specialist for Italian shoes (90 m 2).
14 at the end of 2014. The properties were sold by the closed
property fund Georgstraße Objekt 1 GmbH & Co. KG. The build-
Karmarschstraße still making gains
ing ensemble has a total rental area of around 15,900 m . The
Following the completion of building work adjacent to the
shop window front on the Georgstraße is about 50 metres in
Markthalle and around the Kröpcke Center, Karmarschstraße is
length. The dragon slayer house (Georgstraße 14) will see the
now enjoying the positive development that had been hoped for.
Rossmann chain opening a new drugstore (1,200 m ) in early
The prime rent of 170 €/m 2 has to date always been significantly
2016. Main tenants of the connected retail property continue
lower than that achieved in the three other A1 locations. The
to be H&M (3,400 m 2), Esprit and Fitness Company (each
number of new openings between the Markthalle and the Platz
approx. 2,000 m ).
der Weltausstellung (most recently Bang&Olufsen, 270 m 2,
2
2
2
and KUHN Maßkonfektion, 200 m 2) and in the Kröpcke-Center
In the building between the two (Georgstraße 12), Snipes sport
(including COS, Eckerle, Rituals, The Body Shop) have helped
shoe chain opened its new outlet in April 2015 (280 m 2).
push up prime rent, above all in the vicinity of Kröpcke.
Opposite the Opera house, SØR is currently extending its
existing retail area by around 60 m. 2
Apple store opens in Bahnhofstraße
It finally happened in September 2014: Apple opened its 14th
flagship store (1,000 m 2) in a retail property in Bahnhofstraße 5,
after a long and complex conversion and refurbishment. Spanish
label Mango has moved to Bahnhofstraße 8, with its former site
in Bahnhofstraße 4 now occupied by the H.E. by Mango label
(400 m 2).
In the Niki-de-Saint-Phalle-Promenade below the Bahnhofstraße street level, love.it.healthy (75 m 2) has opened a
vegetarian-vegan fast-food outlet.
Luxury labels move into Luisenstraße and Rathenaustraße
The Luisenstraße runs parallel to the Bahnhofstraße (and merges
with the Rathenaustraße towards the Opera house): it continues
Munich fashion company Bogner opens new outlet in the Luisenstraße,
“ Bogner Haus Hannover”. With a retail area of around 400 m 2 Bogner will be
offering both in-house collections and licensed products. The brand currently
operates more than 80 stores world-wide and delivers to some 1,700 dealerships in Germany and abroad.
Classification of chain stores
in Hannover’s A1 locations 2014/2015
Source: Jones Lang LaSalle 2015
Consuming-oriented
Premium
Luxury
76 %
18 %
6%
40 RETAIL
PROPERTY MARKET
One Kitchen moved its outlet in 2015 from Ernst-August Carré to the Ernst-August-Galerie, opposite.
The last free area on the Kröpcke-C enter front the Karmar-
Attractive transaction market in the city and environs
schstraße will be occupied from November by the Massimo
Retail properties both in and around Hannover have maintained
Dutti (840 m 2) fashion label, a member of the Spanish Inditex
their level of attraction and are in high demand, as evidenced by
group. The building Karmarschstraße 16 is currently being de-
many transactions in the last three years. In the inner city, there
molished, the Ruddat Grundbesitz GmbH of Bremen is investing
is hardly any difference on yields between the major shopping
to create around 1,100 m 2 retail area. No details are available yet
streets.
about the new tenants.
The prime yield in an A1 location is 4.75 %. In the region, it is
Große Packhofstraße and Osterstraße
mainly foreign investors acquiring specialist retail centres,
The cornerstone of the Neues Erdmann-Haus in the Große
where the prime yields for decentralised locations has an
Packhofstraße was laid at end May 2015. In July the Düssel-
average of 6.5 % - although good specialist retail centres in
dorf-based investor Development Partner AG sold the planned
attractive locations are being traded in part at a higher level.
office and retail building to Aachener Grundvermögen. Anchor
tenant will be Polish fashion label Reserved (2,600 m 2) with
the move into the A1 location scheduled for spring 2016. The
office premises (1,500 m 2) are already fully let.
Shopping centres complement inner city offer
June saw the arrival of design fashion chain WHO’S PERFECT
(700 m 2) in the Galerie Luise (around 20 shops on approx.
5,000 m 2). The new property owner, Accom, intends to position
the Galerie Luise more clearly in the premium segment. The
Ernst-August-Galerie mall, an inner city shopping magnet,
together with the A1 shopping streets, opened five years ago
and last year a number of rental contracts expired. New arrivals
include One Kitchen (120 m 2) and Reserved (2,000 m 2). The
area freed up by One Kitchen’s move to the Ernst-AugustCarrée was taken over in September 2014 by outdoor specialist
Mammut (240 m 2).
WHO’S PERFECT is a specialist for Italian designer furniture. The label
arrived in Lower Saxony’s state capital at the end of June, in the premium
arcades of the Galerie Luise. The Hannover store is the 10th and joins
well-established branches in Munich, Stuttgart, Wiesbaden, Frankfurt,
Cologne, Düsseldorf (2), Hamburg and Berlin.
RETAIL
PROPERTY MARKET 41
Quality shoe label Scarosso has been active in the market for more than four years offering shoes made by hand in Italy for both men and women. It opened
an outlet in the Rathenaustraße in Hannover in late 2014, joining those in Hamburg, Berlin and Frankfurt.
2014 saw a transaction value of € 127 million for retail prop-
(future anchor tenant: Reserved) was acquired by the Aachener
erties in the region. In 2013 the figure was considerably above
Grundvermögen shortly after the laying of the cornerstone, as
€ 500 million. The year was dominated by major individual
already mentioned.
deals in excess of 100 million, such as the Kröpcke-Center and
the Leine-Center Laatzen, and a large number of transactions
Retail warehouse and shopping centres in the region
in the inner city as well as in the region. This trend did not
In Hannover’s outlying districts there are also locations with
continue in 2014, because of the lack of properties available.
outstanding retail centrality, for example the centres of Langen-
Some exceptions: in 2014 the Munich-based family company
hagen, Garbsen and Laatzen. Approximately half the retail
Accom Immobilien holding (AIH) acquired the Galerie Luise
turnover of € 6.4 billion is generated in the region outside of the
in the Luisenstraße together with the PodbiPark in the List
state capital. This underlines the fact that in addition to the
district. The Alte Leipziger Lebensversicherung A.G. purchased
powerful magnets situated in Hannover city centre, the region
the office and retail buildings Georgstraße 10 and 14 at the
has its own important retail locations, able to profit from the
end of 2014.
purchasing power of the outlying areas.
In early 2015 retail is again the strongest asset class
In early 2015 retail properties had an almost two thirds share of
the total volume of the Hannover transaction market, making
it the strongest asset class again. This wasn’t just due to the
take-over of the GALERIA Kaufhof inventory transactions.
Two other A1 retail properties also changed ownership: the
building at Bahnhofstraße 8 (anchor tenants: Esprit, Desigual
and Mango) was acquired by Deka Immobilien for a Sparkassen
fund. The Neues Erdmann-Haus in the Große Packhofstraße
Polish fashion label Reserved is continues to expand in Germany. Target groups are 18-35-year-old females with an eye on price and fashion. In addition to outlets in Recklinghausen, Stuttgart and Bremen the company is also now present in the Ernst-August-Galerie. It will move into a new build in the Große Packhofstraße in early 2016.
RETAIL PROPERTY MARKET
44 RETAIL
PROPERTY MARKET
Möbelhaus Höffner intends to open its new furniture store at the end of 2015 at Altwarmbüchen directly adjacent to the A2-Center. The company is again implementing
its concept of large sales areas and a catchment area with a radius of 80 – 100 km. The company based in Schönefeld near Berlin will be opening its 19th store.
Garbsen: The planned Shopping Center Neue Mitte
Isernhagen-Altwarmbüchen: The business park in Isern-
(20,000 m 2) will not be continuing the collaboration with
hagen-Altwarmbüchen is not only the site of the A2-Center
investor Sonae Sierra. The Planetencenter in the Auf der Horst
revamped in 2014 by the Krieger group/Berlin, but is also the
district (12,000 m retail area) was re-opened in May 2015 after
new site of a Möbel Höffner store with 37,400 m 2 retail area.
a comprehensive refurbishment by the Lüder group, based in
The opening is scheduled for the end of December 2015. Overall,
Hildesheim. Anchor tenants include Edeka and Aldi, as well as
Krieger will then have invested € 150 million in the A2-Center and
Rossmann and Das Depot. The retail warehouse centre was
the furniture store.
2
sold in July 2015 for some € 43 million to Savills Investment
Management, an international property investment firm, which
Laatzen and Langenhagen: In recent years considerable sums
is integrating the property in the European Retail Fund (ERF),
have been invested in shopping centres in central locations,
managed for institutional investors.
each offering approx. 30,000 m 2 of retail space, with various
portions also being acquired by foreign investors in recent years.
RETAIL
PROPERTY MARKET 45
Map // city centre retail
19
10
21
33
32
25
35
27
24
7
26
1
29
12
5
14
3
17
34
c
20
22
13
30
16
11
8
18
31
4
28
stellung
15
6
9
2
50 m
100 m
150 m
N
23
Selected project developments, conversions or openings
(2014-2016)
1
2
3
4
5
6
7
8
9
10
Apple
Bang & Olufsen
Bogner
COS
H.E. by Mango
KUHN Maßkonfektion
Mammut
Massimo Dutti
Petit Bateau
11
12
13
14
15
16
17
18
Shopping centres / arcades
Major retailers /
department stores
19
26
Reserved
(in Ernst-August-Galerie)
20
Reserved (neues Erdmann-Haus)
21
Rossmann
22
Scarosso
23
Snipes
24
SØR
25
Terner Mode
WHO´S PERFECT
Neubau Karmarschstraße 16
Ernst-August-Galerie
27
Galerie Luise
Shopping Centre Kaufland
28
Kröpcke-Passage
Markthalle
29
Niki-de-Saint-Phalle-Promenade
30
Ihr Einkaufsbahnhof Hannover
Main station
31
32
Gastronomy
(openings / conversion / expansions)
33
C&A
34
GALERIA Kaufhof
at Ernst-August-Platz
35
GALERIA Kaufhof
at Marktkirche
U Tram
Karstadt Sports
Saturn
love.it.healthy
Vapiano
P Multi-storey car park/ parking
Karstadt
Primark
Dunkin’ Donuts
A1 location
Pedestrian precinct
Old Town
City logistics: the demolition of the hall of the former central goods station am Weidendamm has been completed. aurelis plans to invest some € 9 million in revamping the site.
It is intended to locate inner city trades operations and smaller logistics services. Amongst others the Deutsche Post DHL Group and delicatessen wholesaler Andronaco are
planning to expand on or locate to the brown field site in the Nordstadt.
LOGISTICS PROPERTY MARKET 47
In demand
Hannover is Germany’s most important logistics location after Hamburg, and is one of the most dynamic logistics
locations nation-wide. Factors like its central location, excellent infrastructure and well connected commercial areas
all make Hannover Region an excellent site for logistics organisations.
Hannover Region has developed into Europe’s logistics hub over
are increasingly investing themselves in sustainable and flexibly
the last ten years, it has an excellent position as a seaport hinter-
usable properties.
land hub and is already host to many key national and international logistics service providers.
Since 2010 some 30 large-scale (> 5,000 m 2 halls) in a number
of location and expansion projects have seen the long-term
It is a vital production and distribution site for Europe, with
investment of more than € 500 million in the region.
excellent logistics links to not only Scandinavian countries but
also Eastern Europe. Many of Europe’s goods streams are bundled
together in Hannover. Forecasts for goods volumes in Hannover
M arket demand for flexible and sustainably usable
properties
region all show that there is still potential waiting to be exploit-
Logistics area turnovers in Hannover Region are being increas-
ed. Above all the connections towards Eastern and Northern
ingly dominated by large-scale project developments with
Europe will gain in importance in the future.13
correspondingly high rental areas. The main demand amongst
users and investors is currently for new builds offering specific
As a job intensive sector, the logistics industry is very much at the
levels of quality and size standards: there is a trend for logistics
focus of the regional employment market in Hannover Region.
properties with 10,000 plus m 2 warehousing space offering good
Every sixth job in logistics in Lower Saxony is located in Hannover
alternative uses and 24 hour availability (industrial zone) with
Region. Furthermore, an efficiently organised logistics economy
good motorway access.
and the concomitant service providers create decisive competitive advantages for regionally situated companies in industry,
production and trade.14
One of Germany’s leading investment locations
The dynamic development experienced in recent years, with
many expansions and new build projects all confirm, even on
a nation-wide comparison, that Hannover Region is highly attractive for the logistics sector. The rents for logistics properties
have been stable over many years, costs for land acquisition are
moderate when set against location advantages. Companies in
the logistics industry, from the logistics economy, from trade
4.50 €/m 2
Prime rent for
new build in
top location 2015
and industry need no persuading of the location’s qualities and
13 14 See also Hannover Region (2014): Perfectly connected – logistics location Hannover Region (location information 4/2014)
See also Hannover Region (2014): Insights into a regional growth industry – corporate profile logistics (location information 5/2014)
48 LOGISTICS PROPERTY MARKET
These criteria are particularly crucial for contract logistics and
Realistic prime rents have remained stable at € 4.50 due to a
central distribution functions, both of whose share in space
dearth of outstanding properties. The average rents for good
turnover has risen significantly. The concentration process is
logistics properties have, however, benefited and have risen
continuing unabated in the logistics industry and also underpins
by 10 cents to 3.50 €/m 2. The prime yields are also developing
the demand for even larger, more modern logistics projects.
positively and are at around 6.6 %.
The long-term regional market development has shown that
Hannover and its region are a logistics location which guaran-
These impressions are confirmed by viewing current transac-
tees investors stable yields and properties have a high level of
tions in mid-2015. aurelis Real Estate acquired two inventory
alternative uses.
properties in Hannover Region, including a 23,500 m 2 hall
previously used by Edeka adjacent to the Hannover exhibition
grounds.
High on demand – low on turnover
While the demand on the logistics property market continues
at a high level in particular for land suitable for logistics project
Hannover Airport has great potential
development (> 20,000 m 2 halls) - demand which cannot be
The airport, one of the largest employers in Hannover Region
fully satisfied - 2014 was again marked by relatively poor turn-
is also a crucial logistics service provider. It is one of the key
over. The market players registered around 140,000 m 2 total
commercial airports in Northern Germany, flying to national and
turnover at end of 2014, generated by new lets and acquisition
international destinations.
for own use.
Hannover Airport plays a key role with its hub function for road
Logistics property turnovers Hannover Region 2007–2014
400
feeder services. The two parallel runways without any weight
restrictions, a 24-hour operating permit, free slot capacities and
business areas in the immediate vicinity, in part with optional
connection to the apron, all add up to excellent preconditions
300
for the location of logistic operations.
200
Hannover Airport has invested € 110 million in recent years in
its expansion programme to extend the freight and logistics
100
sectors. Central component of the concept is the linking of the
entire western area by a road tunnel to the airport’s other areas.
2014
2013
2012
201 1
2010
2009
2008
2007
0
Source: surveys and Hannover Region own calculations
This created room for additional cargo and logistics facilities.
Over long to medium term this will create up to 45 hectares of
land ideally suited for companies in the logistics business.
Overall turnover therefore sank relative to 2013 by around 30
% and was actually 40 % down on the average of the last five
L ogistics service providers invest in Airport Business
Park Ost
years (240,000 m ). Owner-occupier turnover also halved in
Two project developments will be kicking off in 2015 at Airport
a year-on-year comparison and settled at a level of around
Business Part Ost. DB Schenker is set to build a new cross-dock
55,000 m 2. Main demand in this segment in previous years
terminal intended to serve the development and optimisation
came from the automobile sector and trade (in particular
of the logistics company’s European networked transportation
e-commerce). These user groups were absent in 2014 with major
activities. The new site on the Münchener Straße complements
owner-occupied projects or rental contracts.
the existing property on Bayernstraße, where other 8,000 m 2
2
halls and two high rack warehouses with a total of 15,000 bays
P rime rent revenues down despite continuing excellent
yields
are already present. Following commissioning of the new crossdock terminal, these existing properties will be comprehensively
Market players are currently observing a shift in demand:
modernised. Adler Immobilien Investment is building a project
because high quality logistics areas are simply not available in
with an investment value of some € 32.5 million for DHL Express
sufficient numbers, interested parties are shifting their atten-
immediately adjacent to DB Schenker.
tion to higher quality inventory buildings.
ABP
West
ProLogis Park
ABP
Süd
Weatherford
Hermes
WABCO
Fiege
Schenker
arvato
Krage
Geodis
Dachser
MTU
Schenker
The Airport Business Park (ABP) at Hannover-Langenhagen immediately south of the airport on the A352 motorway only has a limited number of plots left.
Over the medium term the airport will opening a 45 ha business area situated between the two runways for logistics services.
The new build is just part of a comprehensive infrastructure
From November of this year onwards, the facility will supply REWE
programme being implemented by DHL Express in its German
regional warehouse in six German states. Following completion,
operations – including Frankfurt, Stuttgart, Nuremberg, Freiburg
the REWE Group will acquire the warehouse from the bauwo
and Mannheim – in a process of sustainable modernisation and
Grundstücksgesellschaft mbH.
expansion.
O utlook: project developments in the next two years
T he REWE Group retail logistics providers are investing
Verdion announced in mid-2015 its intention to expand its
logistics centre on Kronsberg in Hannover with a further 35,000
in the north
Hannover project developer bauwo Grundstücksgesellschaft mbH
m 2 hall in a second building phase; the first phase, for around
is developing the second national head warehouse for fruit and
50,000 m 2, has been used since the start of the year by e-com-
vegetables for the REWE Group on an approx. 52,300 m2 plot in the
merce service provider arvato, which handles the internet
Wedemark/Berkhof district directly on the A 7 motorway north of
trading for fashion houses such as Esprit, C&A, Hugo Boss and
Hannover. The fresh goods logistics centre is divided into two cool
Tommy Hilfinger.
zones of between 5 °C and 10 °C. An additional 1,000 m office and
2
technology space complements the complex. The 48 loading bays
The BAUM Unternehmensgruppe of Hannover took over the
are designed to handle approx. 250,000 tonnes fruit and vegetables
expansion areas in Garbsen originally reserved for Netrada and
per annum.
is now planning to build an up to 75,000 m 2 logistics centre
over the short term. Two other projects already with building
permits are also planned: by project developer ProLogis at the
Airport Business Park Langenhagen and by bauwo Grundstücksgesellschaft mbH in Lehrte. Together with the move
of production and logistics of Laverana natural cosmetics to
Barsinghausen on the A 2 motorway, these projects alone will
be creating around 200,000 m 2 hall and 20,000 m 2 logistics
office and mezzanine areas over the short and medium term.
Hannover-based bauwo Grundstücksgesellschaft mbH is currently developing a fresh-goods logistics centre in Wedemark/Berkhof. Working for the
REWE Group the centre will be the second of two national head warehouses
for fruit and vegetables. The 14,500 m 2 refrigerated hall and the 1,000 m 2
offices and technology areas will be commissioned in November.
50 LOGISTIC PROPERTY MARKET
Logistics area plan concept for further
The preview area Barsinghausen / Groß Munzel –
area development
Holtensen (36.5 ha) is similarly part of the logistics focus
Hannover Region has responded to the growing demands of the
location. The building plan procedure has already been initiated.
logistics industry by creating a sustainable logistics area concept.
The plan sets out those locations which are suitable in terms of
A building plan procedure has also started for the land-use
planning as sites for new logistics areas and which also satisfy
plan areas in Laatzen/Rethen-Ost (30 ha).
market requirements. The following is a break-down of potential
areas in which municipalities have already commenced with
actual implementation.15
A feasibility study has been prepared for logistics focus location
Barsinghausen/Wunstorf. At the sub-location Wunstorf /expansion business park Süd (approx. 90 ha) an economic feasibility study looks into the development of a trimodal location
with links to road, rail and inland shipping. The city of Wunstorf is
currently collaborating with HRG – Hannover Region Grundstücks-
€ 500 million
Investment volume
in logistics projects
since 2010
gesellschaft – on establishing a joint development company to
develop and market the areas.
Key logistics space potential 2015*
In the north
No.
Logistics
locations
Space potential
Wichtige
Logistikflächenpotenziale
Supra-regional
2015*
Sectors and selected companies
connections
3
Burgwedel/
Großburgwedel
Approx. 20 ha BP
A7 Großburgwedel
Resident: Rossmann HQ and regional
warehouse (drugstore), logistics
centre Pickerd Dekor
4
Garbsen/west of
Gutenbergstraße
Approx. 20 ha BP
A2 Jct. Garbsen
Suitable for logistics,
automotive, wholesale
6
Hannover/
Schwarze Heide
3 ha BP
A2 /B6 Jct.
Hannover-Herrenhausen/
Nordhafen
Suitable for automotive, logistics;
resident: automotive supplier Decoma,
VW Commercial Vehicles (Amarok
logistics centre), directly adjacent to
VWN, Continental, Johnson Controls
7
Isernhagen/Kirchhorst
Approx. 5 ha BP
A7 Jct.
Altwarmbüchen
Suitable for wholesale, customer
services, manufacturing industry,
resident: RUSSKA LUDWIG BERTRAM
GmbH
9
Langenhagen/
Airport Business Park Ost
9 ha BP and
SA airport
Intersection
Hannover-West A 352
Jct. Engelbostel /
Jct. Hannover-airport
4.3 ha special area for airportassociated businesses, further
approx. 4.5 ha BP suitable for
logistics
10
Langenhagen
Airport Business Park
West extension
Approx. 45 ha
development area
Intersection
Hannover-West A352
Jct. Engelbostel /
Jct. Hannover-airport
Development area between runways, first
building phase with 6.8 ha Gle-building
rights in preparation, extension of existing
development. In addition airport-internal
and –associated usage also suitable for
logistics (Limitation: no plants pursuant
to Annex To 4th BimSchV); resident: TNT,
Air Cargo Terminal
15
Wedemark/Gailhof
Approx. 10 ha
development area
A7 Jct. Mellendorf A352
Intersection
Hannover-Nord
Suitable for logistics, wholesale, customer service, manufacturing industry.
Resident: haulier Ebeling, Autohof
15 cf. Hannover Region (2015) Fortschreibung Gewerbeflächenmonitoring 2015 (location information 4/2015)
* Numbers refer to maps on pages 54 and 55
BP = business park
SA = special area
IA = industrial area
LOGISTIC PROPERTY MARKET 51
Key logistics space potential 2015*
In the east
No.
Logistics locations
Space potential
Supra-regional
connections
Sectors and selected companies
5
Hannover/Lohweg
6 ha
B65 Südschnellweg
A 7 Jct. HannoverAnderten
Suitable for industrial-scale business,
wholesale
8
Laatzen-Ost
40 ha
mainly IA
A 37/B 6 Messeschnellweg
Jct. Messe
A 7 Jct. Laatzen
Directly adjacent to the Hannover
exhibition grounds, suitable for
logistics, wholesale
11
Lehrte/Aligse
Approx. 20 ha BP
A 2 Jct. Lehrte
Suitable for logistics, wholesale, customer service, manufacturing industry
12
Lehrte/Everner Straße
Approx. 5 ha BP
A 2 Jct. Lehrte-Ost
Suitable for wholesale, manufacturing industry; resident: Hornbach
logistics centre
13
Lehrte/Mielestraße,
Industriestraße
Approx. 10 ha BP
A 2 Jct. Lehrte-Ost
Suitable for logistics, wholesale and
manufacturing industry; resident:
Meyer&Meyer, Schäfer’s industrial
bakery, arvato logistics centre
14
Sehnde/Höver
Approx. 30 ha BP
A 7 Jct. HannoverAnderten
Suitable for logistics, wholesale,
industry; resident: Holcim (cement
factory), Landgard flower wholesale
market, ADVEO, Köster & Hapke,
Trans-o-flex, Brandt Logistik,
Delticom AG
In the west
1
Barsinghausen/Bantorf
Approx. 7.5 ha BP
A 2 Jct.
Barsinghausen –
Bad Nenndorf
Suitable for logistics and wholesale;
resident: Lyreco (office wholesale),
Kaufland logistics centre
2
Barsinghausen/
Groß Munzel – Holtensen
Approx. 35 ha
development area
A 2 Jct.
Wunstorf-Kolenfeld
Development area as part of
Logistics Focus West
16
Wunstorf/
Gewerbepark Süd
Approx. 90 ha
development area
A 2 Jct.
Wunstorf-Kolenfeld
Suitable for logistics, wholesale,
industry; resident: Syncreon
(automotive), Marley, hauliers
Oskar Neukirch, Langhorst, Franke,
Kraftverkehr Nagel, MUK Logistik;
development area for trimodal
logistics (road / rail / inland shipping
connections) as part of Logistics
Focus West
* Numbers refer to maps on pages 54 and 55
BP = business park
IA = industrial area
SA = special area
Selected logistics projects*
No.
Object
Location
and/or user
Size
Status,
completion
Completion
1
arvato e-Commerce
logistics centre
A 37/Messeschnellweg, Jct. Messe-Nord,
business part east of
Weltausstellungsallee
Verdion Holding Ltd.
110,000 m 2 plot
50,200 m 2 hall
Q1/2015
2
Bergmann Automotive
warehouse (extension)
A 2 Jct. Barsingh ausen –
Bad Nennd orf, business
park Schacht IV
Bergmann
Autom otive GmbH
2,000 m 2 hall
Q2/2015
3
Hempelmann
warehouse
A 37/Messeschnellweg,
Jct. Pferdeturm,
A 2 Jct. HannoverLangenhagen, business
park former Südbahnhof
Hempelmann
Hannover
Haust echnik
GC Group
1,000 m 2 hall
Q3/2015
4
Paschke warehouse
(extension)
A 37/Messeschnellweg
Jct. Pferdeturm,
A 2 Jct. HannoverLangenhagen,
business park
former Südbahnhof
Paul Paschke GmbH
1,000 m 2 hall
Q2/2015
Under construction
5
aurelis Revitalisation
(former main goods
station)
Jct. Pferdeturm,
A 2 Jct. HannoverLangenhagen,
business park former
Südbahnhof
Aurelis Real Estate
GmbH
20,000 m 2 hall
(after demolition)
2,500 m 2 (wholesale)
12,000 m 2 still available
2016
6
DB Schenker logistics
centre
A 352 Jct. Engelbostel /
Hannover-airport
Airport Business park
– Münchener Straße
DB Schenker
Deutschland AG
70,000 m 2 plot
7,800 m 2 hall
1,200 m 2 office
Q3/2016
7
DHL Express logistics
centre
AD Hannover-West /
A 352 Jct. Engelbostel
/ Hannover-airport
Airport Business park –
Münchener Straße
Adler Immobilien
GmbH
30,000 m 2 plot
6,000 m 2 hall
1,450 m 2 offices
Q2/2016
8
DHL Freight logistics
centre (extension)
A 7 Jct. Anderten,
business park,
Kleiner Holzhägen
Deutsche Post
DHL Group
34,000 m 2 plot
11,000 m 2
marshalling area
4,700 m 2 hall (mechanized delivery base)
420 m 2 offices
Q4/2015
9
DHL Delivery base
in former main goods
station
Jct. Pferdeturm
A 2 Jct. Hannover –
Langenhagen,
business park former
Hauptgüterb ahnhof
Deutsche Post
DHL Group
5,000 m 2 hall
mechanisierte
Zustellbasis
(mechanized
delivery base)
Q1/2016
10
REWE fresh goods
logistics centre
A 7 Jct. Berkhof, business park adjacent to A
7 motorway
bauwo Grundstücksgesellschaft mbH
52,000 m 2 plot
14,500 m 2 hall
1,000 m 2 offices
Q4/2015
11
Rossmann central
warehouse (extension)
A 7 Jct. Großburgwedel,
business park west
of A 7
Dirk Rossmann GmbH
800 m 2 hall
2015
* The figures refer to maps on pages 54 and 55.
Selected logistics projects*
No.
Object
Location
and/or user
Size
Status,
completion
2016/2017
In planning / building preparation
12
Hannover-Garbsen
logistics park
A 2 Jct. Garbsen,
business park
Gutenbergstraße
Garbsen
BAUM
Unternehmens
gruppe
130,000 m 2 plot
62,000 m 2 hall
14,000 m 2 mezzanine/
offices
13
bauwo-logistics centre
A 2 Jct. Lehrte-Ost,
business park
Mielestraße
40,000 m 2 plot
20,000 m 2 hall
14
A 2 Jct. Lehrte-Sievershausen, business park
east of Gewerbestraße
67,200 m 2 plot
26,500 m 2 hall
15
Laverana
A 2 Jct. Barsinghausen
– Bad Nenndorf,
business park Barsinghausen – Bantorf
Laverana
GmbH & Co. KG
40,000 m 2 plot
19,000 m 2 production
and storage areas
16
ProLogis logistics park
A 352 Jct.
Engelbostel /
Hannover airport
Airport Business Park
– Münchener Straße
ProLogis GmbH
45,000 m 2 plot
22,000 m 2 hall
17
Verdion E-Commerce
logistics centre
(extension)
A 37 / Messeschnellweg, Jct. Messe-Nord,
business park east of
Weltausstellungsallee
Verdion Holding Ltd.
69,000 m 2 plot
35,000 m 2 hall
A modern logistics centre featuring around 62,000 m 2 warehousing is an investment by Hannover-based BAUM Unternehmensgruppe directly at the Garbsen
A2 motorway Jct., on the State Capital’s doorstep. The company is also planning up to 14,000 m 2 mezzanine and office areas. Building can commence immediately: the BAUM Unternehmensgruppe forecasts an investment sum of around € 50 million.
10
10
15
3
11
10
9
7
16
4
7
6
12
16
6
N
B
2
M
9
R
L
5
3
5
4
1
1
15
17
2
8
14
8
Map // logistics locations
Potential commercial/industrial areas (suitable for logistics)
Numbers refer to table on pages 50-51
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Barsinghausen/Bantorf
approx. 7.5 ha
Barsinghausen/
Groß Munzel-Holtensen
approx. 35 ha*
Burgwedel/Großburgwedel
approx. 20 ha
Garbsen/
western Gutenbergstraße
approx. 20 ha
Hannover/Lohweg
approx. 6 ha
Hannover/Schwarze Heide
approx. 3 ha
Isernhagen/Kirchhorst
approx. 5 ha
Laatzen-Ost
approx. 40 ha
Langenhagen/
Airport Business Park Ost
approx. 8 ha
Langenhagen/
airport extension west approx. 45 ha*
Lehrte/Aligse
approx. 20 ha
Lehrte/Everner Straße
approx. 5 ha
Lehrte/Mielestraße
approx. 10 ha
Sehnde/Höver
approx. 30 ha
Wedemark/Gailhof
approx. 10 ha*
Wunstorf/Gewerbepark Süd
approx. 90 ha*
* Development area
Area potential
11
13
13
12
Up to 5 ha
Up to 10 ha
Up to 30 ha
Up to 90 ha
14
Selected logistics projects
Numbers refer to table on page 52-53
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
arvato e-Commerce logistics centre
Airport
Bergmann Automotive warehouse (extension)
Exhibition grounds
Hempelmann warehouse
annover-Lehrte goods
H
transhipment centre
Paschke warehouse (extension)
L
aurelis Revitalisation (former main goods station)
DB Schenker logistics centre
M
N
DHL Express logistics centre
B
DHL Freight logistics centre (extension)
R
DHL Delivery base in former main goods station
Lindener Hafen
Misburger Hafen
Nordhafen
Brinker Hafen
Seelze rail marshalling yard
REWE fresh-goods logistics centre
Rossmann central warehouse (extension)
Hannover-Garbsen logistics park
Waterway
Motorway
Main road, dual carriageway
Laverana
Main road
Railway line
ProLogis logistics park
Verdion e-Commerce logistics centre (extension)
Logistics projects
Completed
Under construction
In planning
In the north-eastern part of Hannover, between the List and the Groß-Buchholz neighbourhoods, the new Lenbachhöfe residential district is currently under construction. 34 city
houses are grouped together in threes and fives along an inner access road.
RESIDENTIAL PROPERTY MARKET 57
Continued growth
The main force driving the development of the residential property market is the forecast population growth in the state
capital and the directly adjacent municipalities. The “Wohnkonzept Hannover 2025” sets out the response of Hannover
city to today’s and future challenges of the housing market.
Growing market, regionally characterised
The challenge of housing refugees
In a national comparison of residential property markets, Han-
A further challenge facing Hannover city is the need to pro-
nover plays a more subordinate role and is regionally charac-
vide accommodation for refugees in the city environs. The
terised in terms of demand and supply, as well as the regional
land required will then no longer available over the short to
demand for private housing. Turnover and revenues in the
medium-term for its intended purpose, i.e. as land for building
residential property market have, however, both been climbing
homes or for businesses.
tangibly over the last three to four years. Many new projects are
currently under construction or in planning, the number of com-
Low interest rate driving demand for home ownership
pletions more than doubled between 2012 and 2014 compared
Amongst families in particular there is a demand for detached
with the previous years.16
family homes as well as semi-detached and terraced housing.
The continuing low interest rates are enabling even lower income
Population continues to grow
families to enjoy the prospect of purchasing their own four walls.
The growth of the population in the state capital and neigh-
In Hannover, the demand for home ownership in this segment,
bouring communities is boosting this development. Proximity
according to market player estimates, is higher than the available
to the city centre, local communities and excellent transport
supply. This is also reflected in today’s price developments.
connections are all key quality factors when choosing a location. These criteria are satisfied by both residential districts in
the city as well as in the cities and municipalities in Hannover
Region.
Vacancies below fluctuation reserve
Alone the city of Hannover is forecast to enjoy population
growth of between 2 % and 6 % by 2030. In contrast, the
number of vacant residential properties has been very low for
many years and since 2012 has been moving considerably below
the generally recognised fluctuation reserve of up to 2 % of the
residential market .17
Differing demands and ideas
The actual living ideas and requirements of potential demand
groups are extremely diverse. Young people in training, studying
or starting their professional careers require smaller, less expensive accommodation. Similarly, single parents and vulnerable families are dependent upon inexpensive housing. Many
older persons would like barrier-free living space, which would
allow them to stay in their familiar environment until they reach
old age.
16 Less is more: the residential zone planned by the Gundlach company on
Kirchweg in Bothfeld has adopted this motto: deliberately reducing privately
used areas to that actually required on a daily basis keeps living costs down.
Extraordinary space needs (short-medium term) can be satisfied by communally used areas. The actual buildings and use of space is intended to raise
the level of identification for the neighbourhood and foster long-term bonds
between residents.
Comparison of years 2009 to 2011 (mean value completions, 340 housing units) to 2012 to 2014 (mean value completions 729 housing units).
Source: bulwiengesa AG calculations based on state office for statistics Lower Saxony figures (statistics for residential and figures refer to apartments and residential and non-residential buildings in total)
17 Comparison State Capital Hannover: vacant property analysis (notes on urban development 118), 2013
Working for a private Munich-based investor, Delta Bau AG is building, in a construction management role, 10 modern 2 to 4-room apartments in the Leisewitzstraße.
The apartments are between approx. 70 to 130 m 2 in size, all with sunny balconies or terraces.
RESIDENTIAL PROPERTY MARKET
60 RESIDENTIAL PROPERTY MARKET
Wettbergen is the location of the “zero:e park”, Europe’s largest residential project with zero emissions for circumspect and sustainable building. The entire
neighbourhood has been rigorously planned to passive house standards. The INTERHOMES passive house project “Ambiente” is the only national residential
project to receive the federal ministry for buildings award for sustainability. The project is being extended on adjacent land with a further 43 units.
Home building is subject to dynamic price development
At the time of the last rent index, the comparable mean value
In Hannover city, the average price for a detached single family
was € 8.05 per m 2 (range of € 6.78 to €9.43) which represents
house in 2014 rose to € 299,000 (price development year-on-
an increase of 13 %. 21
year plus 8.1 %). The average costs for buying a terraced or
semi-detached house to € 260,000 (price development year-
Clear increase in apartments in prime sector
on-year + 6.3 %). People who traditionally sought single family
In Hannover city, the rent and cost of buying high quality apart-
homes and terraced houses are now moving their sights to the
ments in apartment houses in good areas has also risen. According
alternative of larger apartments offering sufficient space and
to bulwiengesa forecasts and in the opinion of market players,
rooms. According to the expert panel, the average values are
new contracts for high quality inventory apartments in good
climbing here as well and, depending upon age, have risen to
situations will see increases in rent in 2015 rise by 50 cents (plus
between € 1,875 and € 3,540 per m 2, also prime values in Lower
5 %) to € 10.50. Realistically, apartments in new builds will see
Saxony.
rents rise by 1 € to € 14.50 (plus 7.4 %).
18
In total, the region saw transactions in 2014 for apartments and
houses reach a total value of around € 1.64 billion.19
Rents climbing in Hannover
In Hannover Region during 2015 an updated rent index was presented for the communities in the region. Overall, the average
basic net rent, weighted according to area, in Hannover state
capital has only risen by a moderate € 0.15, equivalent to 2.5 %
per m² residential space per month compared with the 2013 rent
index, to a value of € 6.17. 20 There has been a significant rise
observed for larger, well situated, well equipped apartments.
With respect to larger apartments (85 m 2 plus, inventory and
new build since 1995) in good areas the rent index 2015 has a
range of € 7.34 to € 10.70 per m 2, with the average at € 9.10.
18 19 20 21 The grounds of a former gardening centre on the Peiner Straße in Döhren is
the site on which Gundlach will start building 40 terraced and semi-d etached
houses in early 2016. The winning design for this urban architectural competition involves semi-detached houses and groups of houses situated around
two residential courtyards, enriching the neighbourhood by providing open
communal spaces.
S ee also Expert panel for property values Hannover-Hameln, property market report 2015. This consideration does not differentiate explicitly between new builds and stocks. However, it is assumed that from 2012
this building year class will comprise for the most part new builds.
W ith respect to the total property transactions in the submarkets residential and part ownership, detached single and double-occupancy homes, terraced houses and semi-detached houses and apartment houses
(inventory and new build). Expert panel for property values Hannover-Hameln, 2015.
See GEWOS, rent index for Hannover Region (documentation, 2015).
See rent index Hannover State Capital 2013 and 2015. The current rent indexes for individual regional municipalities are available for download at www.hannover.de.
meravis is building the Tizian Atelier – 26 owner-occupied apartments in a 3.5 storey structure on a 2,750 m 2 plot. The open gables create architectural accents
along with the structured facade and the movable sun shades. The Tizian Atelier is in the painters’ quarter, between the List and Groß-Buchholz neighbourhoods, directly adjacent to the Eilenriede city forest.
Revenues from the sale of well situated high quality apartments
Housing concepts for different needs
in new builds will rise on average by 6.3 % to € 3,400 €/m 2 , with
In 2013 the city of Hannover presented its Wohnkonzept
the prime at 4.4 % to € 4,700 /m 2. The multipliers are climbing
Hannover 2025 as an action plan passed by the city council in
(15 for inventory, 18.5 prime) whereas for new builds market
order to be able to offer a robust basis for creating both spatial and
players estimate that, depending upon location and fittings,
qualitatively diverse potential areas for the building of new homes.
prime properties multipliers of up to 22 are possible.
The housing concept covers the forecast demand for almost 8,000
new apartments up to the year 2025, with a maximum case of up to
Apartment buildings dominate
12,300 housing units. In addition the housing stock is to be further
The factors influencing developments are reflected in the
developed. In a first step building rights are to be created for an
projects listed in the property market report. The share of
additional 1,500 apartments between 2013 and 2015. The housing
apartment buildings compared with single and double occupan-
concept includes providing appropriate land both for single family
cy houses and terraces is now much larger. Of the approx. 4,000
houses as well as for apartment buildings intended for rent and
housing units referred to in the overview and currently either in
purchase.
preparation, under construction or approaching completion (see
tables, from page 64, not including medium planned pipeline
Municipal funding programme has started
projects), three quarters are apartments. In principle, however,
Both the city and the Region have initiated a new municipal sub-
new build housing should be spread across all housing units and
sidised housing programme to both ensure and create affordable
demand groups in order to bind the population over all income
housing. The state capital will provide up to € 27.3 million in the
and age groups to Hannover over the long term.
years ahead to finance home building, and support the annual construction of 100 apartments by 2018/2019,. The priority here is on
small (single person) households as well as larger units for families
Family-friendly, close to town, on a tight budget – this is the market segment on which the Deutsche Reihenhaus AG is focusing on in Hannover. Three projects are
currently under way: in Hannover-Stöcken, Auf der Klappenburg (14 terraced houses), in Laatzen, Merkurark (53 terraces) and in Hannover in the Karlsruher Straße
(19 terraces).
with many children. Hannover Region is also promoting affordable
Reutilisation: apartments replace offices
rental accommodation for households on low incomes. A total of €
A number of interesting projects are currently underway and
15 million will be available between 2015 and 2017.
in the pipeline in central locations involving the conversion
of office into living space. The former premises of HDI-Ver-
Municipal funding programme kicks off
sicherungen head office in the List neighbourhood directly
Across the city and the region, the diversity of available housing
next to the Eilenriede forest is a project turning former office
is large. The range includes the development of empty inner
space into around 80 apartments for let and sale. The high-rise
city plots and brown field sites where residential concepts tend
on Raschplatz, known to Hannoverians as the Bredero, after the
to veer towards small-scale, high-quality and very individual
Dutch investor in the 1970s, is the subject of plans for convert-
schemes through to major project developments.
ing former office storeys into apartments. The existing apartments on the upper floors will be joined, according to plans
New neighbourhood: the Wasserstadt
of the owner and the city of Hannover, by up to 120 additional
One of the largest neighbourhood development in the years
apartments. The Bredero would then be Hannover city’s first
ahead is the Wasserstadt Limmer. The plans for the re-
detached residential high-rise.
development of this prepared brown field site of the former
Continental plant in Limmer are currently being revised and
discussed also reflecting the guidelines in the Housing Concept
2025. Plans range from between 1,600 and 1,800 housing units
with private homes and apartment buildings, in contrast to the
original much lower figure (650 housing units). The plans for
the grounds of the former Oststadt hospital are taking shape.
Around 400 housing units in various configurations are currently on the cards, of which the STRABAG project for 80 units is
already under construction.
14.50 €/m 2
Prime rent
residential
new build 2015
Housing rents in the prime price segment in
Purchase price of owner-occupied apartments
Hannover 2010 to 2015
(new builds) in Hannover 2010 to 2015
14
5,000
12
4,000
€/m²
8
6
3,000
2,000
1,000
4
2015*
2014
2013
2
2012
2010
0
2011
€/m²
10
Re-let
2015*
2014
2013
2012
2011
2010
0
New housing
Average
* Market player forecast
* Market player forecast
Other projects for specific target groups
Prime groupe
clinic on the Ihme river, the “Ihmeauen”, and on the Hanomag
A number of major projects are currently in their completion
grounds in Linden. Private property development associations
phase. The Munich-based International Campus AG is investing
are active here as well, where loft apartments can be purchased
€ 25 million in The Fizz, student accommodation offering 303
in an unfinished state, and then completed themselves.
flats in Hannover’s Nordstadt neighbourhood.
City projects at Klagesmarkt and Marstall
In Wettbergen, all plots on Europe’s largest zero emission
Marstall is the site of two new builds: the Hannover division of
neighbourhood, the zero:e park, have now been marketed.
the STRABAG organisation is planning the MarQ: a new build with
The entire neighbourhood is made up of climate-friendly houses
a sandstone facade offering space for gastronomy, offices and
according to a rigorous passive house building concept, in which
residential. At the western end of the plaza, on the banks of the
300 primarily single family and terraced houses have been
river Leine, a second sandstone structure is also planned. Project
built or are under construction. The new VIER neighbourhood
developer in this case is the Hamburg HOCHTIEF company, with a
is the result of the collaboration of four architects working on
design providing mainly residential and office premises. The pro-
a historic site in the List district to create eight individually
ject was acquired in mid 2015 from the GBH. On the Klagesmarkt,
designed apartment blocks. Overall, 166 apartments have been
construction is moving ahead on around 100 apartments and the
created on parts of the former grounds of the Pelikan AG. Other
new GBH office building. 20 % of the apartments are publicly
very individualised living concepts are also taking shape in part
subsidised.
in inventory buildings, for example at the former dermatological
The residential property market details are determined by bulwiengesa AG on the basis of empirical surveys. This involves surveying estate agents, evaluation boards, banks and business promotion organisations,
evaluating newspaper articles, as well as assessing all publicly accessible information concerning the property market. These include the price comparison index from the real estate associations, saving banks and some
regional and supra-regional estate agents. The values are then cross-checked in Hannover at a workshop in the presence of the relevant market players.
Evaluation then takes place within the context of the overall development of the market and taking into consideration the econometric model calculations. Figures are first summarised in a schematic diagram and crosschecked to determine their plausibility. Bulwiengesa AG does this by referring to a large number of building-related data in its own RIWIS database. Finally, all the findings on the given values are concentrated.
The rental and purchase prices for owner-occupied apartments refer to first occupation (new build and rehabilitation) and resale/re-let(older than or after 10 years) in €/m² living space and refer to the ideal/typical
apartment having three rooms and approx. 65 – 95 m² living space and standard fixtures and fittings in good to very good location. Because the fixtures and fittings and size are standardised, the rental and purchase
price range basically represents a variation bandwidth influenced by location and micro area. The prices stated are nominal values. Rental and purchase prices are quoted without ancillary costs and do not reflect any
subsidies. The prime values refer to the top 3 – 5 % of the market, from which an average is formed. These prices do not refer to the absolute top purchase price which is defined by exceptions.
Rental and purchase price figures given here are the average values reflecting a typical or usual level – they should not be seen as a strict arithmetic average, mode (most frequent value) or median (central) value in a
mathematical sense. The prime price segment figures shown here are the prices which can only be achieved in Hannover in buildings with above average fixtures and fittings in very good locations and which have already
been achieved in Hannover in 2015 according to players in the Hannover market.
Selected residential projects*
No.
Housing units
Of which
detached
single and
double-occupancy homes,
terraced houses
Of which
apartments
Developer/investor
300
International Campus AG
In completion/completed
1
Student accommodation
“THE FIZZ”, Nordstadt
303
2
zero:e park, Wettbergen
300
300
3
Büntekamp, Kirchrode
180
123
4
VIER, List
166
5
Cross-generation housing,
Bockstraße, Hemmingen-Arnum
151
6
Ihmeauen, Linden
7
Hannover city, meravis Bauträger
GmbH, NLG, INTERHOMES AG
57
formart GmbH &Co. KG,
Delta Bau AG, Weber Massivhaus
166
89
GPI GmbH, INTERHOMES AG,
Fischer-Bau GmbH
96
96
HRG & Dr. Meinhof GmbH & Co. KG,
private property developer
Am Yachthafen, List
60
60
8
Merkurpark, Laatzen
53
9
Schönefelder Straße,
Langenhagen
46
46
10
Welfenhof-Villen,
Isernhagen-Süd
41
41
Heinz von Heiden GmbH
11
Lenbachhöfe, List
41
30
11
LIEMAK GmbH
12
Droste-Hülshoff-Platz, Misburg
30
30
13
Seelhorster Garten, Kirchrode
30
30
BAUGRUND Bauträger KG
14
Bronsartstraße, List
27
27
Weser-Wohnbau GmbH & Co. KG
15
Benzweg/Melanchthonstraße,
Vahrenwald
26
26
Spar- und Bauverein Hannover eG
16
Stadtquartier Sutelstraße,
Bothfeld
24
24
Theo Gerlach WohnungsbauUnternehmen GmbH & Co. KG
17
Auengarten (1st BA), Limmer
22
18
Refugium Körnerstraße, Mitte
22
19
Anderter Höfe, Anderten
20
20
Lister Innenhöfe, List
18
18
Steuerberaterversorgungswerk
Niedersachsen
21
Dannenbergstraße, Ricklingen
16
16
22
Freiraum 52, Südstadt
15
4
11
ImmoInvest GmbH
23
Prüssentrift, Isernhagen-Süd
14
4
10
HELMA Wohnungsbau GmbH
24
Leisewitzstraße, Zooviertel
14
14
Delta Bau AG for private investor
25
Hanomag Stadthaus
11
11
agsta
* The figures refer to map on page 67.
62
53
Deutsche Reihenhaus AG
daidalos Bau- und Beteiligungsgesellschaft mbH & Co. KG
22
meravis Bauträger GmbH
22
20
BAUGRUND Bauträger KG
Delta Bau AG
No.
Housing units
Of which
detached
single and
terraced houses
Of which
apartments
Developer/investor
Under construction
26
Wietzeaue, Isernhagen
290
27
An der Gartenbauschule, Ahlem
245
28
Gutenbergquartier, Laatzen
29
Casa Baubetreuung, HELMA
Wohnungsbau, Heinz von Heden
GmbH, HANNOVER HAUS, Heger
Bauunternehmen,Weber Massivhaus, private project
100
Hannover Region Grundstücksgesellschaft (HRG) mbH, BBK Bau
GmbH, Hanseatische Immobilien
Treuhand
115
115
S+R Bauträger GmbH, PRIMUS Projektentwicklungsgesellschaft mbH
SüdSüdWest, Misburg
113
113
Wohnungsbaugenossenschaft
Kleefeld-Buchholz
30
Klagesmarkt, Nordstadt
96
96
Gesellschaft für Bauen und
Wohnen Hannover mbH (GBH)
31
Wedekind-/Bödeckerstr., List
77
77
32
Wohngarten, Bothfeld
62
62
GW Bothfeld GmbH
33
Hanomagstraße 8, Linden
56
56
Dannenberg Immobilienhandel
GmbH
34
Quartier/Carré Sodenstraße,
Oststadt
49
49
E. Paulin Wohnungsbau GmbH,
LENZ Häuser GmbH
35
Mergenthalerstraße, Laatzen
36
36
HZ Hausbaugesellschaft GmbH
36
Overbeckstraße, List
27
27
Steuerberaterversorgungswerk
Niedersachsen
37
Auengarten (2nd BA), Limmer
23
23
38
Hainhölzer Markt Nord, Hainholz
23
23
39
Lister Blick, List
23
40
Forum Herrenhäuser Markt
(2nd phase), Herrenhausen
22
22
WGH-Herrenhausen eG
41
Am Hohen Ufer, Mitte
16
16
42
An der Christuskirche, Nordstadt
15
15
Bauteam Management GmbH
43
Kanthäuser, Kleefeld
14
14
44
Wohnpark Alt-Stöcken, Stöcken
14
45
Wohnetage Parkhaus
Windmühlenstraße, Mitte
12
12
union-boden GmbH
46
Läuferweg, Groß-Buchholz
10
10
47
Söseweg, Langenhagen
9
9
48
HanomagLofts II, Linden
6
6
agsta
140
23
14
No.
Housing units
Of which detached single and
terraced houses
Of which
apartments
Developer/investor
Preliminary building activity
49
Kleefelder Hofgärten, Kleefeld
216
216
50
Südbahnhof, Südstadt
130
130
aurelis Real Estate GmbH
51
Podbielskistraße/Pasteurallee,
Groß-Buchholz
82
82
STRABAG Real Estate GmbH
52
Hildesheimer Straße, Südstadt
80
80
53
Altenbekener Damm, Südstadt
75
75
54
Alte Döhrener Straße, Südstadt
67
67
55
Quartier St. Nikolai, Limmer
46
46
Spar- und Bauverein Hannover eG
56
Peiner Straße, Döhren
40
57
Marstall, Mitte
30
30
HOCHTIEF Hamburg GmbH,
STRABAG Real Estate GmbH,
58
Podbielski-/Overbeckstraße, List
30
30
Hanseatic Group
59
Vis-à-vis, Misburg
29
60
Tizian Atelier, List
26
61
Karslruher Straße, Mittelfeld
19
40
29
Weber Massivhaus GmbH
26
19
In planning
62
Wasserstadt, Limmer
1.600
Wasserstadt Limmer
Projektentwicklung GmbH
63
Former Oststadt hospital,
Groß-Buchholz
400
Hannover city
64
Inklusives Wohngebiet
Am Annastift, Mittelfeld
370
40
330
Diakonische Dienste
Hannover gGmbH
65
Hilligenwöhren, Bothfeld
250
24
226
66
Eichenpark, Langenhagen
225
225
HELMA Wohnungsbau GmbH,
KSG Hannover GmbH
67
Quartier 121, Laatzen
220
75
150
Projektgesellschaft Quartier 121
68
Karl-Wiechert-Allee, Heideviertel
185
15
170
HOCHTIEF Hamburg GmbH
69
Am Listholze, List
150
70
Bredero, Oststadt
120
120
MAXIME Investment GmbH
71
Former Women’s hospital,
Nordstadt
100
100
Klinikum Region Hannover GmbH
72
Alter Markt/Flebbehof, Laatzen
74
48
73
Zweibrückener Straße, Kirchrode
46
46
74
Hofstelle am Anger, Bothfeld
40
40
75
Tiestestraße, Südstadt
40
40
BBK Bau GmbH
76
Hofanlage Bemerode, Bemerode
24
4
19
77
Lückewiens Hof, Langenhagen
21
21
26
Map // Current residential projects
66
Isernhagen
9
77
26
10
47
23
65
32
74
16
44
69
7
38
4
15
40
62
71
55
27
17
37
34
18 30
29
12
49
68
24
52
43
50
19
75
33 25
59
11
70
45
57
41
6
46
31
14
42
58
36
20
1
60
63
51
39
3
22
73
54
53
48
13
56
21
76
64
2
61
Airport
Exhibition grounds
Tram
Railway line
Hemmingen
0 km
1 km
2 km
3 km
72
City boundary
28
35
Good housing area
8
N
5
Normal-good housing area
67
In completion / completed
Preliminary building activity
Under construction
In planning
Normal housing area
The City of Hannover has a population of around 520,000 (2014), making it the largest of the 21 municipalities in Hannover Region, with an overall population of around
1.12 million. Hannover Region has around 470,000 employees paying social insurance (2014), making it a leading economic location in Lower Saxony.
HANNOVER IN COMPARISON 69
Comparison between Hannover and selected German cities
City
Hannover
Bremen
Dortmund
Nuremberg
Stuttgart
Leipzig
Essen
Population 2014
519,942
548,464
575,549
504,071
610,825
531,714
568,552
Employees paying social
300,222
256,173
212,622
284,529
379,800
241,065
228,540
138,465
100,938
84,547
119,765
197,702
92,036
100,053
46.1 %
39.4 %
39.8 %
42.1 %
52.1 %
38.2 %
43.8 %
Workforce 2014 3
403,694
351,120
318,178
373,545
500,084
321,640
325,803
Total office workforce 2014 1/2/3
168,693
122,381
105,278
142,709
236,380
110,034
122,232
41.8 %
34.9 %
33.1 %
38.2 %
47.3 %
34.2 %
37.5 %
10 %
10.1 %
12.8 %
7.6 %
5.7 %
10.2 %
12.4 %
4,474,347
2,554,748
2,612,585
3,539,291
7,543,949
2,742,347
2,982,488
26.5
20.9
24.8
24.8
31.9
24.9
24.4
105,000
69,000
65,000
45,000
269,000
95,000
95,000
254,400
116,500
161,000
265,000
324,000
370,000
140,000
Vacancy rate (MF-G) 2014 5
5.7 %
4.6 %
6.2 %
7.5 %
4.3 %
13.5 %
4.7 %
Prime office rent city centre
14.20
12.50
13.50
13.20
19.00
12.50
14.00
9.80
8.50
10.50
9.30
14.50
9.30
9.60
195
125
210
140
235
125
110
104.9
99.3
96.2
105.0
112.4
91.2
101.9
Turnover index 2014 6
137.4
118.5
115.7
138.6
135.9
93.3
120.5
Centrality index 2014 6
131.0
119.3
120.2
132.1
120.9
102.3
118.3
insurance 2014 1
Office employees paying social
insurance 2014
1/2
Office employees paying social
insurance ratio 2014 1/2
Total office employees ratio
2014 1/2/3
Unemployment rate 2014 4
Total office stock (MF-G) 2014
in m
2
Office space (MF-G) in m 2
per office employee 2014
Office space turnover 2014
in m 2 (MF-G) 5
Vacant space (MF-G) 2014
in m 2
5
2014 €/m²
Average office rent city centre
2014 €/m²
Prime retail rent city centre
2014 €/m²
Purchasing power index 2014 6
1
Preliminary estimates by bulwiengesa AG based on the data available from the Federal Labour Office at the time the report was prepared with respect to employees paying social insurance at place of work.
2
Based on precise profession category ratios of registered employees paying social insurance pursuant to the method developed by Prof, Dobberstein, supplemented by the specific ratios for civil servants employed in offices, self-employed office workers and
supporting family members. Most research institutes dealing with this issue now use the method developed by Prof, von Dobberstein,
3
Workforce in the overall national accounting calculations: the workforce in overall national accounting calculations includes all persons involved in salaried jobs as employees (workers, employees, civil servants, part-time employees, soldiers) or as self-employed or as supporting family members, independent of the scope of this activity, Persons with more than one simultaneous job contract are only recorded once and then with respect to their main employment activity.
4
Annual average value referring to unemployed persons as fraction of all civil job seekers (dependent civil job seekers, self-employed, supporting family members) excluding social service recipients capable of working and willing to work. The values for the
City of Hannover are determined by bulwiengesa AG on the basis of special evaluations,
5
RIWIS.For Nuremberg/Fürth (2007) and Hannover (2008/2009 and 2012/2013) the figures are based on extrapolations based on inventory surveys in the years stated. The values for other cities are based on estimates.
6
GfK, 2014
Sources: Research and calculations of bulwiengesa AG; statistical state offices, Federal Labour Office, GfK; Hannover Region
!
IMPRINT
Region president
Business and employment promotion department
Report content
ANGERMANN HANNOVER GmbH
prepared by Property
BAUM Unternehmensgruppe
Market Report Group:
DELTA DOMIZIL GmbH
Engel & Völkers Hannover Commercial
FIH Fürst Immobilien Hannover GmbH
Hannoversche Volksbank eG
Henschel Immobilien
INTERHOMES AG
Jones Lang LaSalle GmbH
State Capital Hannover, business promotion
meravis Wohnungsbau- und Immobilien GmbH
Region Hannover, business and employment
promotion department
S-GewerbeImmobilienVermittlung Hannover GmbH
STRABAG Real Estate GmbH
In collaboration with bulwiengesa AG
Text and editing
Stabsstelle Marketing und Regionalanalyse,
Fachbereich Wirtschafts- und Beschäftigungsförderung Region Hannover
Maps
Design
Team Mediengestaltung Region Hannover, B&B. Markenagentur GmbH
B&B. Markenagentur GmbH
Issue
9/15/3
As at
9/2015
!
IMPRESSUM
Picture acknowledgements
BAUM Unternehmensgruppe: pages 22, 53
Deutsche Reihenhaus AG: page 62
Delta Bau AG/Birgit Streicher: page 58/59
Gundlach GmbH & Co. KG: page 57
Landeshauptstadt Hannover: page 20
meravis Bauträger GmbH: page 61
prize Management Group GmbH: page 13
Hannover Region: page, 16, 49
Hannover Region/Olaf Mahlstedt: cover, fold, pages 4, 7, 8, 9,
10/11, 21, 23, 24, 25, 28/29, 31, 37, 38, 39, 40, 41, 42/43, 44, 46, 56, 68
schulze & partner. architektur.: page 15
Shutterstock: title
Star Inn Hotels Deutschland GmbH: page 12
HANNOVER REGION
STATE CAPITAL HANNOVER
Business and Employment Promotion
Business Promotion
Haus der Wirtschaftsförderung
Haus der Wirtschaftsförderung
Vahrenwalder Straße 7
Vahrenwalder Straße 7
30165 Hannover
30165 Hannover
Germany
Germany
Hilmar Engel
Telephone: +49 (0) 511 616-23241
Telephone: +49 (0) 511 168-31313
Fax: Fax: +49 (0) 511 616-23453
+49 (0) 511 168-41245
[email protected]
[email protected]
www.wirtschaftsfoerderung-hannover.de
www.wirtschaftsfoerderung-hannover.de
The property market report 2015 is also available as an app for iPhone/iPad
together with additional photos and texts and expanded functions.
Download at www.wirtschaftsfoerderung-hannover.de/apps
www.immobilienmarktbericht-hannover.de

Property market report 2015 Strong Location - Good

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