Commercial space turnover at its best level for 14 years

08.09.2023 - Hannover Region presents report on the development of demand for and supply of commercial space

The commercial space market has recovered strongly in the current year. This is shown by a look at the Hannover Region's commercial space monitoring - there is a significant resurgence in commercial space take-up in 2023. With an increase from 46 hectares in 2022 to 82 hectares this year, this trend clearly exceeds the long-term average of 62 hectares over the last 30 years. This development can be partly attributed to the backlog of postponed investment decisions following the effects of the coronavirus pandemic.

"The almost doubling of take-up is a clear sign of the strong economic recovery in the Hannover Region. The above-average demand compared to the long-term average demonstrates the strong momentum with which the Hannover Region has emerged from the coronavirus crisis."
Alexander Skubowius, Head of the Economic and Employment Promotion Department

The price trend in the state capital is remarkable. Here, prices for commercial space continued to rise significantly, from EUR 186 per square meter in 2021 to EUR 273 per square meter in 2022. In the immediate surrounding area, on the other hand, there was a slight decline in prices from EUR 120 per square meter in 2021 to EUR 104 per square meter in 2022. Prices in the outer fringes of the Hannover Region also fell slightly, from EUR 91 per square meter in 2021 to EUR 81 per square meter in 2022.

"The sharp rise in property prices in the state capital shows the high attractiveness of the business location. At the same time, prices in the surrounding area are also stable. That shows: The Hannover Region has offers for different needs - that is an asset we can use to our advantage. At the same time, the stabilization of the supply of commercial space over the last three years should not obscure the importance of creating new space. The revitalization of commercial space will play an increasingly important role here."
Head of Economic Affairs Ulf-Birger Franz

The demand for commercial properties shows a clear focus on different usage groups. The logistics sector is the frontrunner here with a share of 20%, followed by the industrial and manufacturing sector with 16% and trades, (vehicle) workshops and petrol stations with 12%. Business-related services (10%) and leisure and health services (9%) are also in high demand.

The supply of land in the region has only decreased slightly, from 677 hectares in 2022 to 663 hectares in 2023. However, there has been an overall reduction of 18 percent over the last five years. Of the available areas, 55 hectares are immediately marketable B-plan areas (developed, municipal ownership), 137 hectares are B-plan areas that can be marketed later (undeveloped and/or privately owned) and 471 hectares are F-plan areas (without a legally binding B-plan).

The arithmetic range of the commercial space available in the B-plan areas provides interesting insights. In 16 of the 21 member municipalities, the range of available space is below the critical five-year limit. In particular for the location types logistics, services and knowledge and technology-oriented industry, the calculated range is classified as critical.

The Commercial Space Monitoring 2023 is available in a new form atwww.wirtschaftsförderung-hannover.deerstmalig. On the website, both the entire monitoring can be downloaded as a print-ready PDF and individual chapters or individual statistical values can be summarized into an individual data collection.

Contact us

Hanover Region
Digital Infrastructure Project Management
Martin Bostelmann
Project Management Digital Infrastructure
Hanover Region
Economic Development
Department of Economic Development and Employment Promotion
Hanover Region
Press spokesman
Christoph Borschel
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