“The real estate market is extremely active in most major cities,” explains Managing Director Matthias Müller. “As a result of rising labour and production costs, property prices have increased quite dramatically. The question is, how long can prices continue to rise when you reach the upper price level? The financial markets have a strong influence because the high prices can only be financed by low interest rates. I don’t believe there will be any shocks: no sudden increases in interest rates, for example. I believe that Hamburg will continue to grow, and there will be more projects on the periphery of the city.”
Founded in 1952, the family-owned concern has a well-established business strategy when it comes to private sales. “We have a very stable project pipeline, from which we sell 170 residential properties to owner-occupiers every year – it’s all about continuity,” adds Mr. Müller.
There are numerous examples of BEHRENDT’s residential projects around the city. Neue Mitte Altona is a high-profile development split over two building areas; it consists of many new apartments, of which 140 were purchased by owner-occupiers.
“It was a successful project with many satisfied customers,” underlines Mr. Müller. Handover of Parkquartier in the city center district of Barmbek, which includes 70 privately owned apartments, will take place during 2018 and 2019.
“We are in the end phase of the Barmbek project,” notes the Managing Director. “The development is in the middle price segment. In Hamburg, this spans 4,000 to 7,000 EUR per square meter, and we also aim to serve the lower end of this price range. Another of our current projects at Jenfeld on the outskirts of Hamburg will offer apartments at 4,300 EUR per square meter.” The vast majority of purchasers already live in the local region, often in the city itself.
Everyone trusts in property as an investment. I believe this will remain the case, although future developments will need to be assessed. Matthias MüllerManaging Director
Besides residential properties for private sale, BEHRENDT builds residential apartments for the rental market, such as those on the Neue Mitte Altona development and the 100 apartments which were released at Othmarschen Park two years ago; the company also constructs office accommodation. Its projects are primarily located in the center of Hamburg and the surrounding commuter belt.
Since 1952, the traditional family firm, now in the third generation, has built over 11,000 residential properties and around 100,000 m2 of offices over the years, and offers a number of advantages over many of its competitors.
“We benefit from the fact that we coordinate all of the development phases in the value chain, from purchasing and planning, to dealing with contractors and managing sales,” Mr. Müller underlines. “This speeds up the process. We have all the information to hand, and our experience enables us to choose the easiest and fastest routes. We know how to get a good, marketable product to the customer.”
Mr. Müller, who joined BEHRENDT in 2013 from the banking sector, believes strongly in the future of the property sector. “Everyone trusts in property as a solid investment,” he says. “I believe this will remain the case, although future developments will have to be carefully assessed.”
BEHRENDT’s strategy is to continue to drive the increase in the construction of residential property for owner-occupiers, and will strive to achieve its annual target of selling 170 apartments in this sector. “Of course, it is possible that the economic outlook may change in the coming years, but our target will remain constant,” Mr. Müller summarizes. “In this industry, stability and solidity are vital factors for success. Our goal is to remain a stable, solid, competent partner.”