Hamburg allocates more money for land purchases again - Hamburg's Urban Transformation: Major Real Estate Projects and Land Acquisition Strategy
Hamburg is set to transform its urban air with major real estate developments. The city aims to retain land permanently through heritable building rights, charging a low annual fee. Two significant projects are planned: a mixed-use development at Diebsteich by LIG, and residential units in Stellingen. The LIG is developing a large-scale project at Diebsteich, including a Regional League football stadium, a concert hall, and office spaces. This is expected to be completed by late 2029. Meanwhile, in Stellingen, 237 residential units are planned, with construction starting no later than mid-2027. The local football club, Altonaer Fußball-Club von 1893 e.V., and municipal city planners are responsible for these developments. Hamburg's strategy involves acquiring land and offering favorable heritable building rights. The city now owns 49.4% of its total urban air, with 4,384 such contracts in place. In 2023, Hamburg spent €298.4 million on land purchases, a 13.1% increase from the previous year. The city acquired 67.5 hectares and sold 18.6 hectares in the same period. Finance Senator Andreas Dressel has assured that the ground rent will not increase from 1.3% in 2024. LIG's primary revenue comes from rental and lease income, which reached €107.3 million in 2023, a 6.7% increase. Despite purchasing more land than it sold and making further investments, LIG reported a surplus of €18.3 million in 2023. Hamburg's urban development plans are moving forward with the Diebsteich and Stellingen projects. The city's strategy of acquiring land and offering favorable heritable building rights is expected to continue, with the city owning nearly half of its total urban air. LIG's financial strength, despite increased land purchases, indicates a robust real estate market in Hamburg.
