# Hamburg

> Hamburg is Germany's second-largest city and a major port city with a strong maritime economy.

Canonical: https://www.investbud.de/en/states/hamburg
Last updated: 2026-10-28

Hamburg is Germany's second-largest city, with about 1.87 million residents (end of 2025), and as a city-state it is also a federal state. The property transfer tax is 5.5%. Its economy rests on the port and trade, media, aviation and technology.

- Transfer Tax: 5.5%
- Capital: Hamburg
- Population: 1,9 million
- Area: 755 km²
- Germany's second-largest city
- Major port and media industry hub
- About 1.87 million residents at the end of 2025
- Rent cap (Mietpreisbremse) across the whole city until the end of 2029

## Real Estate Market

Demand for housing is high, supply is still too low according to the city, and prices in the central districts are high. Eppendorf, Winterhude and Eimsbüttel are sought-after districts with older buildings. In the Harburg borough, IBA Hamburg is developing new neighborhoods.

- Hamburg is one of the more expensive big-city markets in Germany; the median figures at the top of the page show the current level
- According to the Hamburg Port Authority's employment study, about 123,800 people in the metropolitan region had port-related jobs in 2019, about 68,100 of them in Hamburg
- The city considers housing supply too low; since 1 January 2026 the rent cap has applied across the whole city until the end of 2029

## Transfer Tax Details

Hamburg charges a Grunderwerbsteuer of 5.5% and raised the rate from 4.5% on 1 January 2023. On a purchase price of 450,000 euros, this comes to 24,750 euros. The rate is 2 percentage points above Bavaria's 3.5% and 1 percentage point below the 6.5% of neighboring Schleswig-Holstein, which puts it mid-range among the states. Notary and land registry fees add about 1 to 1.5% of the price.

## Investment Cities

As a city-state, Hamburg offers many districts with different profiles rather than several cities, from new builds on the waterfront to neighborhoods of older buildings.

- HafenCity and Speicherstadt: A new-build district on the Elbe next to the historic Speicherstadt
- Eppendorf and Winterhude: Neighborhoods of older buildings north of the city center; Eppendorf is home to the university hospital (UKE), and Winterhude lies between the Alster and the Stadtpark
- Wilhelmsburg and Harburg: Districts south of the Elbe; in Harburg, IBA Hamburg is developing new neighborhoods such as Fischbeker Reethen
- Altona and St. Pauli: Neighborhoods close to the center; Altona has older buildings in Ottensen and new builds in Mitte Altona on former railway land

## Practical Tips

- In Wilhelmsburg and Harburg, check before buying which projects are planned nearby and how far along they are
- Check the distance to the nearest U-Bahn or S-Bahn station, because many tenants choose a flat by its transit connection

## Frequently Asked Questions

### What is the property transfer tax in Hamburg?

Hamburg levies a Grunderwerbsteuer of 5.5% of the purchase price. The rate has applied since 1 January 2023 (previously 4.5%) and is mid-range among German federal states.

### What makes Hamburg attractive for property investors?

Hamburg has a broad economy with the port, media, aviation and technology, a slowly growing population (2025: about 6,900 more residents) and, according to the city, too little housing. On the other side are high purchase prices and the citywide rent cap, which limits the rent when a flat is re-let.

### Is HafenCity a good investment area?

HafenCity is a new-build district on the Elbe next to the historic Speicherstadt. The U4 underground line connects the district with the city center. Whether a purchase pays off depends mainly on the price relative to the rent you can achieve.