Immobilienzeitung - East Westphalians Pay Up to €28,000/sqm for Elbe Views

Apartments in the premium project "The Crown," just a stone’s throw from Hamburg's Elbphilharmonie, cost up to €28,000 per square meter. Just four weeks after the official launch, 63 of the 75 luxury apartments developed by Aug. Prien and DC Developments in HafenCity have already been sold. Interestingly, rather than oligarchs or sheikhs, a notable number of buyers are from East Westphalia.

“The demand has risen even further,” Björn Dahler explains when asked about the pandemic's impact on luxury apartment sales in the Be Strandkai project near the Elbphilharmonie. Four weeks post-launch, 63 of the 75 apartments—priced at an average of €17,700 per square meter—have been notarized, with seven more reserved. “We still have five apartments left,” including one of the two over-400-square-meter penthouses for €11 million.

Dahler, managing director of DC Developments, is collaborating with Hamburg-based developer and construction company Aug. Prien on the €400 million Be Strandkai project. Of the 480 total apartments, 75 are in The Crown, a 17-story residential tower. Ten floors of the building’s shell have already been completed. “We were able to sell most of the apartments quietly to our clients since the discreet marketing phase began in June 2020,” Dahler says.

Dahler attributes the sales success to two factors: “The unobstructed view directly on the Elbe is a rarity in Hamburg, besides the Elbphilharmonie.”

To give prospective buyers a taste of the views pre-completion, DC Developments and Aug. Prien created a “worldwide-unique configuration tool” for experiencing each apartment’s view. Thousands of drone images were used to create 360-degree perspectives of the Elbe, harbor, HafenCity, and the city center. The units are also virtually staged in three distinct styles, designed by the duo Armin Panahi and Randi Schumacher. “What’s special is how deeply we detail the product,” Dahler notes. “Buyers are moving to notarization more quickly because the simulations give them price-performance confidence.”

Prices for the 55 to 426 sqm apartments, with two to seven rooms, range from €11,000 to €28,000 per square meter without furnishings. Each of the first 11 floors houses six apartments with two to three rooms and up to 130 square meters. The apartments get larger as one ascends, culminating in the two-story penthouses, each over 400 square meters. One of these, 426 sqm, is still available for €11 million.

Instead of Sheikhs or Oligarchs, East Westphalians are Buying

Despite these high prices, no sheikhs, oligarchs, or wealthy Chinese have bought units. “Unlike in Berlin, international buyers play a minimal role here,” Dahler says, adding with a smile, “We’re seeing a remarkable demand from East Westphalia. It seems Westphalians prefer Hamburg over cities in North Rhine-Westphalia.”

Most buyers come from Hamburg or northern Germany, with around 20-25% as investors, who prefer the smaller units around 55 sqm. For many owner-occupiers, the purchase is an investment in a second or third home, alongside properties in Sylt or Kitzbühel. For regional buyers, the proximity allows for overnight stays following a visit to the Elbphilharmonie.

Almost all of the 76 apartments in Fiftynine Strandkai, another 17-story tower designed by Hadi Teherani as part of the Be Strandkai project, have also been sold. The average price of the 73 units sold is €13,800 per square meter.

Sales in the Überseequartier to Begin Shortly

DC Developments is also working on two residential projects in the southern Überseequartier, with a project volume of €220 million. Sales for Building A, with 306 units, are expected to start within weeks. “This is a premium project, but not high-end,” Dahler clarifies. The neighboring E3 building, with 96 condos, is more luxurious and expected to launch sales in a few months. Prices for these units will be slightly lower than those at Fiftynine Strandkai since they are not waterfront properties.

Dahler eagerly anticipates the future development of the Grasbrook district along the Elbe’s southern shore. “Developing a project that offers views across the Elbe to the city will be spectacular.”

MEDIUM:
IZ Immobilienzeitung - 30.3.2021

LOCATION:
Hamburg

LINK:
www.iz.de/projekte/news/-ostwestfalen-zahlen-bis-zu-28.000-euroqm-fuer-elbblick

AUTHOR:
Friedhelm Feldmaus

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