The property market in Hannover remains stable at a high level. This is the main finding of the seventh property market report on the Hannover Region. It was elaborated by a project group with public and private sector partners, alongside the respected consulting company BulwienGesa.
The property market in Hannover remains stable at a high level. This is the main finding of the seventh property market report on the Hannover Region. It was elaborated by a project group with public and private sector partners, alongside the respected consulting company BulwienGesa. The conclusions are valid for all of the commercial property markets segments looked at in the Hannover Region: retail trade, offices, and logistics.
Institutional investors appreciate the low fluctuations in rents and yields in the Hannover area. A particularly important factor in the regional competition to attract the 'creative class' is the urban development process 'Hannover City 2020': Hannover is laying down the blueprint for the future with a high level of investment. Hannover City 2020 was adopted as a pilot project by the German government's national urban development policy (BMVBS/BBR) because of its innovative approach. The attractiveness of the location is also highlighted by another source: the City Barometer published by Ernst & Young places Hannover in the number two position in terms of location quality second only to Munich.
Market development overview:
Hannover is one of the most successful retail cities in Germany: the: Georgstraße and Bahnhofstraße/Niki-de-Saint-Phalle-Promenade are again in the Top 10 main shopping streets in Germany in terms of rental price ranking and passer-by frequency. The recently opened ECE Shopping Center Ernst-August-Galerie next to the central station upgrades the city center further. With the rise in the retail sales space in the city center alone to 290 000 m², Hannover is easily the most outstanding retail center in the region (830,000 m² in the whole of Hannover city, 1.8 million m² in the whole region). The rents in 1a locations average 120/m², with peak rents of up to 180/m² in the Georgstraße and Große Packhofstrasse. Rent prices have remained stable despite the increase in retail space.
Hannover has an increasing number of people working in offices. The number of men and women working in offices in 2008 rose by 5% year-on-year to 151,000. The forecast is for the number of office employees to rise by another 4,000 by 2018, with a corresponding increase of 345 000 m² in the amount of office space. Vacant office space dropped again last year to 200,000 m². The vacancy rate for Hannover city was 4.8%. A clear rise of over 70,000 m² in the amount of completed office space is expected in 2009.
The Hannover Region profits from the rising demand for large logistics properties which can be reused when there is a change of tenant. Hannover is one of the top logistics regions in Germany, and boasts access to large parts of the European market. Despite the global financial crisis, Hannover enjoyed a space turnover of 217,000 m² in 2008. The rents for logistics properties have remained stable at an average of 3.00/m² to 3.20/m².
Hannover's class as a research and science location is being expanded further. The Leibniz University will complete its over 1,100-m² laboratory for Nano and Quantum Engineering in autumn 2009. Boehringer Ingelheim plans to construct a research center for animal vaccines, and is investing 35 million at a 24,000-m² site. The University of Veterinary Medicine Hannover is investing 45 million in a 22,000-m² clinic complex for veterinary medicine in Kirchrode, and the Hannover Medical School is planning a test center for medicines and vaccines with a total investment of 30 million.
The health and culture sectors rate Hannover as a crisis-resistance location. 2009 sees the start of construction of the Hannover Region Clinic at the Siloah site: the new complex will have 530 beds and is set to cost 100 million. In the cultural sphere, Hannover Zoo is i
