Benko bankruptcy: Elbtower's future in Hamburg hangs by a thread!

Benko bankruptcy: Elbtower's future in Hamburg hangs by a thread!

It's a turbulent year for the Hamburg real estate market, and at the top of the list of topics is the fate of the turquoise Elbtower. The Austrian real estate entrepreneur René Benko is facing charges of financial manipulation in his home country. This also has a direct impact on the Hanseatic city and creates uncertainty in this country. So reported NDR that Hamburg was severely affected by the Benko bankruptcy and that several properties with mortgages worth billions were in limbo.

The Elbtower, which was originally planned to be the third highest skyscraper in Germany with a height of 245 meters, remains unsaleable for the time being. While the city of Hamburg has successfully sold all other properties operated by Benko, the plans for the Elbtower are still awaiting resolution since October 2023 in view of the insolvency of Signa Holding and the associated construction shutdown. The responsible construction company has stopped its construction activities, which has led to a standstill on the construction site daily news.

Next steps in Hamburg

Finance Senator Andreas Dressel (SPD) is optimistic and reports progress in the city. “The developments are promising and we have a good knack for mastering the situation,” said Dressel. In fact, investors have already acquired the Alsterarkaden, the Flüggerhöfe and the Kaufmannshaus. These sales are a positive sign for the Hamburg real estate market, which is under pressure due to the current crisis.

In addition, the city of Hamburg acquired the former HSH Nordbank building for an impressive 112 million euros. The “House of the Digital World”, an eight-story office building on Gänsemarkt, is planned there and is due to be completed by the end of 2028. Loud Hamburg.de This project will also unite the central library and the adult education center under one roof.

Real estate market in view

The “Hamburg 2025 Real Estate Market Report” also offers a robust basis for determining the value of real estate and shows price trends. The standard land values ​​for single-family house building sites remained stable, while the prices for apartment building sites rose by 5 percent. The average prices for one- and two-family homes remained unchanged at around 808,000 euros. Prices for multi-family homes experienced a decline, falling by 8 percent to around 2,900 euros per square meter.

In 2024 there was a significant increase in transactions and monetary turnover, showing that there is movement in the market despite the challenges caused by the Benko bankruptcy. Sales of new apartments rose by 73 percent, suggesting that there is still high demand, even if the situation around the Elbtower is anything but rosy.

In the discussions about the Elbtower and the real estate market, it is currently being pointed out that no tax money should be used for the takeover and further action. If there is no private-sector solution to resume construction work as part of the insolvency proceedings, the city will use the rights to which it is entitled under the originally secured right of repurchase. The look remains curious about the next developments in Hamburg's real estate sector.