Hannover real estate market: Robust starting position, cautious outlook

Olaf Mahlstedt

The Hanover real estate market remains fundamentally robust. Nevertheless, the economic and macropolitical challenges are considerable: inflation, rising interest rates, huge increases in energy costs, fragile supply chains and the effects of the war in Ukraine.

With a view to the current situation and regional trends, the Hannover Region and the state capital of Hannover todaypresentedthe Real Estate Market Report2022. The joint conclusion: the crisis-ridden environment and, above all, the uncertain outlook are currently making players on both the supply and demand side more cautious in their investment decisions.

Hanover Region

This year's report once again takes a look at the development of five particularly relevant regional real estate classes.

The retailand hotel real estatesector in particular continues to struggle, although initial signs of recovery were visible at the beginning of the year. The residential real estate market, on the otherhand, has expanded its strong position so far, but is facing increased challenges in connection with inflation, rising interest rates and sharply increased energy costs.

After two years of the coronavirus crisis, the submarkets for office, logistics and industrial real estate arerelatively unimpressed, with many data points to stable and generally positive trends. However, the latest developments also present the two traditionally strongest and most robust real estate segments in Hannover with new challenges and developments that are difficult to predict.

Together with 27 partner companies from the real estate industry, the Hannover Region compiles data, trends and market sentiment on all submarkets in the region every year and prepares these together with the consulting firm bulwiengesa AG. The market data and assessments of the current situation and forecasts in the office, logistics, residential, retail and hotel submarkets will also be presented at the international commercial real estate trade fair EXPOREAL in Munich from October 4 to 6, 2022.

The 2022 real estate market report is available for download at www.immobilienmarktbericht-hannover.de - the website also contains overview maps of the market-defining properties in all submarkets.