Is buying a property in Harvestehude a good investment?

Last updated on December 29, 2023

Yes, the analysis of Hamburg's property market is included in our pack

If you've enjoyed the upscale living and green spaces of Harvestehude, you might think about investing in property in this Hamburg district.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Germany, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Harvestehude?

Harvestehude in Hamburg has become a sought-after location for property buyers, offering a blend of unique attributes that distinguish it from other real estate markets.

This picturesque area, nestled in Hamburg, stands out for its lush greenery, historical architecture, and proximity to the Alster Lake, creating a serene and upscale ambiance.

The popularity of Harvestehude can be traced back to its development in the late 19th and early 20th centuries. It became a hub for affluent residents, drawn by its idyllic setting and elegant homes.

This historical charm, combined with modern amenities, has continued to attract buyers. It's not just about the history, though; the area's ongoing development and maintenance have helped sustain its appeal.

Comparing Harvestehude to other areas in Hamburg, it offers a more tranquil, residential experience. Areas like St. Pauli or the Reeperbahn are known for their vibrant nightlife and cultural scenes, but Harvestehude provides a more subdued and refined lifestyle.

This doesn't mean it's isolated; the area boasts excellent connectivity to the city center, offering the best of both worlds - a peaceful retreat within an urban setting.

The type of people attracted to Harvestehude is quite diverse. It appeals to families seeking a safe, picturesque environment, professionals who appreciate the proximity to the city while enjoying the tranquility of the area, and older individuals or retirees looking for a comfortable and prestigious neighborhood. This mix of demographics underscores the area's universal appeal.

However, it's important to acknowledge some of the potential drawbacks. The exclusivity of Harvestehude often translates into higher property prices, which can be a barrier for some buyers.

Additionally, the quiet, residential nature might not appeal to those seeking a more dynamic, urban lifestyle. The area's focus on preservation also means that modern developments are limited, which could be seen as a disadvantage by those looking for ultra-modern facilities.

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Why is Harvestehude a nice place to live?

Living in Harvestehude offers a unique experience that blends upscale living with a touch of historical charm.

The lifestyle and culture here are geared towards comfort and elegance, with a strong emphasis on enjoying the area's natural beauty and architectural heritage. You'll find the streets lined with beautiful, old buildings and parks that offer a serene escape from the hustle and bustle of city life.

The expat community in Harvestehude is quite vibrant, adding a cosmopolitan flair to the neighborhood. People from various countries live here, attracted by the area's beauty and the high quality of life. If you're moving from abroad, you'll likely find a welcoming community that can help ease the transition.

Cost-wise, Harvestehude is on the higher end. The area is known for its upscale properties and affluent residents, so living here does come with a higher price tag.

This is reflected in the cost of housing, as well as in daily living expenses. Many find the quality of life and the amenities available well worth the cost.

In terms of safety, Harvestehude is considered one of the safer areas in Hamburg. Its peaceful streets and well-maintained public spaces contribute to a sense of security and well-being.

The area is well-equipped with amenities and facilities. For families, there are reputable schools such as the Gymnasium Christianeum and the International School of Hamburg. Healthcare facilities like the Asklepios Klinik Altona and the Universitätsklinikum Hamburg-Eppendorf provide top-notch medical care.

Shopping enthusiasts will appreciate the boutique shops and the weekly Isemarkt, one of the largest open-air markets in Europe.

Infrastructure quality in Harvestehude is excellent. The roads are well-maintained, and utilities like electricity and water supply are reliable. Internet connectivity is generally strong, which is a plus for professionals working from home or for expats staying connected with family and friends abroad.

Accessibility is another strong point. Harvestehude is well-connected to other parts of Hamburg and major transport hubs. The Hamburg Airport is easily reachable by public transport or car.

Speaking of public transportation, the area is served by a comprehensive network of buses and trains, including U-Bahn (underground) and S-Bahn (suburban train) stations like the Kellinghusenstraße and Eppendorfer Baum. This connectivity makes it easy to navigate around the city without a car.

Overall, Harvestehude offers a sophisticated, comfortable living experience, marked by its beautiful surroundings, high-quality amenities, and excellent connectivity.

While it might be pricier than other neighborhoods, for many, the cost is justified by the quality of life it provides.

How much does it cost to buy real estate in Harvestehude?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Germany.

Buying a property in Harvestehude can vary significantly in cost reflecting the diversity and exclusivity of the real estate options available.

In this area, you'll find a range of residential properties, including apartments, houses, and some luxury villas. The types of properties in high demand in Harvestehude are primarily the more upscale options, such as spacious apartments in historic buildings and luxury villas.

This demand is driven by the neighborhood's reputation for elegance, tranquility, and its prime location near the Alster Lake.

In terms of new developments versus resale properties, Harvestehude mostly consists of resale properties. The area is known for its historical architecture and preservation efforts, so new developments are relatively rare. This scarcity of new builds adds to the exclusivity and charm of the neighborhood.

Regarding the price range, properties in Harvestehude are among the most expensive in Hamburg. Prices per square meter can vary widely, but it's not uncommon to see figures significantly higher than the average for Hamburg. The exact price depends on various factors like the size, condition, and specific location of the property.

Over recent years, property values in Harvestehude have generally shown an upward trend. This increase is attributed to the area's continued desirability, limited supply of new properties, and overall market trends in Hamburg.

Looking at the future, there may be upcoming developments or city planning changes that could affect property values in Harvestehude.

Any new development, given the area's strict regulations on preservation and construction, is likely to be very high-end and could potentially increase the overall value of neighboring properties.

Predictions for the real estate market in Harvestehude in the coming years suggest that it will likely remain a high-value area. The combination of its desirable location, limited supply of new properties, and the consistent demand for luxury living spaces points towards a stable or even increasing value trend.

Specific factors indicating a potential increase in value include the ongoing appeal of the neighborhood, the general trend in real estate markets towards premium properties in prime locations, and the limited space for new developments, which keeps the supply in check.

All these elements contribute to making Harvestehude a prime location for real estate investment, with a strong potential for value appreciation over time.

Where is the best area to buy a property in Harvestehude?

Finding the best area to buy a property in Harvestehude, really depends on what you're looking for in a home and neighborhood.

Harvestehude is a diverse area, with different parts offering varying atmospheres, property types, and price ranges.

One of the most coveted parts of Harvestehude is near the Alster Lake. Properties here often come with stunning views and easy access to the water, making them particularly sought-after. This area is characterized by its serene atmosphere, beautiful nature, and some of the most prestigious properties in Hamburg.

However, with this prestige comes a higher price tag, so properties near the Alster are typically among the most expensive in Harvestehude.

Another notable area is around Isestraße and the famous Isemarkt, one of Europe's largest open-air markets. Living here means you'll be close to vibrant local life, with access to fresh produce and a lively community atmosphere every week.

The properties in this area tend to be a mix of charming older apartments and a few modern developments. Prices here can be slightly more accessible than those near the Alster, but they still reflect the desirability of the location.

As for up-and-coming areas within Harvestehude, it's a bit of a challenge since the neighborhood is already well-established and highly regarded.

However, areas further from the Alster might offer more competitive pricing while still providing the benefits of living in Harvestehude, such as safety, a strong sense of community, and beautiful surroundings.

When looking for a property, consider areas like Eppendorfer Baum or Klosterstern. These areas offer a good balance of residential comfort, access to amenities, and relatively more affordable property options compared to the lakeside. They are well-connected by public transport and are close to various shops, cafes, and parks.

On the contrary, areas immediately adjacent to busy streets or commercial zones might be less advisable if you're seeking the tranquility that Harvestehude is known for.

While still offering the charm and benefits of the neighborhood, these areas might come with the drawbacks of noise and higher foot traffic.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Germany.

Area	Characteristics	Property Types	Price Range
Near Alster Lake	Serene atmosphere, stunning views, access to water	Prestigious properties, luxury apartments and houses	Very high
Isestraße and Isemarkt	Vibrant local life, access to fresh produce and community	Charming older apartments, some modern developments	High, but slightly more accessible than Alster Lake area
Eppendorfer Baum/Klosterstern	Good balance of residential comfort, amenities accessibility	Mix of residential properties	Moderate to high
Near busy streets/commercial zones	Potential noise and higher foot traffic	Varied, often closer to commercial properties	Varies, potentially lower due to noise/traffic

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Is there a strong rental demand in Harvestehude?

In Harvestehude, there is indeed a strong rental demand, which can be attributed to the area's desirable qualities and its appeal to a specific tenant demographic.

The rental market in Harvestehude tends to lean more towards long-term rentals. This is largely because the area is favored by individuals and families seeking a stable and upscale living environment, rather than the transient nature typical of short-term rentals.

The target demographic primarily includes professionals, both local and expatriate, who are drawn to the area for its tranquility, safety, and proximity to both nature and urban amenities.

Additionally, families are attracted to Harvestehude due to its reputable schools and family-friendly atmosphere.

The profiles of potential tenants in Harvestehude are quite specific. Professionals, often in higher managerial or executive roles, look for properties that offer both comfort and convenience. These individuals typically prefer modern apartments or well-maintained older buildings with updated interiors.

Families, on the other hand, might lean towards spacious apartments or houses, with a preference for properties that offer outdoor space like gardens or balconies.

In terms of areas within Harvestehude, the most sought-after properties are usually those near the Alster Lake, offering scenic views and tranquility. Properties in the vicinity of Isestraße and Isemarkt are also popular due to their vibrant atmosphere and local amenities.

Certain amenities can significantly help to reduce vacancy in rental properties. These include modern fittings, a well-equipped kitchen, a balcony or garden, and in some cases, a parking space.

Properties that are well-connected to public transportation, or those close to parks and recreational areas, also tend to be more attractive to potential renters.

Regarding the potential returns on investment for properties in Harvestehude, they can be quite promising. The exact figures depend on various factors like property size, location, and condition, but generally, rental yields in Harvestehude are competitive compared to other upscale neighborhoods. This is due to the high demand and the area's prestige.

Looking at property types gaining more demand, modern, well-equipped apartments, especially those with eco-friendly features or smart home technology, are increasingly sought-after.

These properties cater to the growing number of environmentally conscious and tech-savvy professionals moving into the area. Investing in such properties could potentially yield better returns due to their growing popularity and the premium tenants are willing to pay for these features.

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Is it easy to buy a property as foreigner in Harvestehude?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Germany.

Buying property in Harvestehude, Hamburg, as a foreigner is generally straightforward, but there are important considerations to keep in mind.

Firstly, in Germany, there are no specific regulations or restrictions for foreign buyers purchasing real estate. This means that as a foreigner, you have the same rights to purchase property as a local citizen.

However, the process and paperwork can be quite complex, and it's important to understand the local real estate market and legal requirements.

The purchasing process in Harvestehude typically starts with finding a property and making an offer. Once the offer is accepted, a notary (Notar) is involved to handle the legal aspects of the transaction.

The notary is a crucial part of the process in Germany, responsible for drafting the sale agreement, ensuring that all legal requirements are met, and overseeing the transfer of ownership. It's important to note that all official documents will be in German, so having a professional translator or a bilingual lawyer can be very helpful.

One of the primary risks associated with property investment in Harvestehude is the potential for unexpected costs. These can include property maintenance expenses, taxes, and fees associated with the purchase (such as the notary's fee and real estate transfer tax).

Additionally, the real estate market can be competitive, especially for desirable properties in upscale areas like Harvestehude, so there's a risk of overpaying if you're not familiar with the local market conditions.

A common pitfall for foreign buyers in Germany is underestimating the importance of due diligence. It's crucial to thoroughly investigate the property, including its legal status, any outstanding debts or liens, and its physical condition.

In Germany, sellers are not required to disclose defects in the property, so it's up to the buyer to conduct a comprehensive inspection.

Working with a local real estate agent and/or lawyer is highly recommended. They can provide invaluable guidance on the local market, help navigate the legal complexities, and ensure that all necessary paperwork is correctly completed.

A local professional can also assist in negotiations and help you understand the typical terms and conditions of sale in Germany.

Common exit strategies for property investors in Harvestehude include selling the property after a period of appreciation or renting it out. The rental market in Hamburg is strong, which can provide a steady income stream.

However, if you plan to sell the property, it's important to be aware of the German capital gains tax, which applies if you sell a property within ten years of purchasing it.