Case Studies  The Karolinenviertel Case in Hamburg - St. Pauli

Distribution of Property

The Karolinenviertel has approx. 3,000 apartment units and 350 commercial units. From this 1,120 apartment and 205 commercial units belong to the city of Hamburg and have been under the management of STEG as trustee since 1990. Approximately 200 apartment units belong to one private housing company. The remaining 1,700 apartments belong to numerous individual private owners. Until now, the apartment stock has been mainly characterised by rental-apartments. So far the promotion and realisation of owner-occupied flats has only been a marginal topic in the district – but this is changing now.

60 to 70 % of stock oriented modernisation and new building measures are being executed within the framework of public funded regeneration. Therefore even after completed redevelopment the rent level of the apartments remains low. In addition, the city’s right of occupation regarding people with low income is being guaranteed. The legally stipulated rents and the occupation-commitment of publicly funded apartments, however, expire after a certain period of time: in the instance of modernisation after 12 to 15 year, with extensive modernisation or new building after 15 to 30 years. After expiration of the stipulated period of time, the owner can demand comparable market rents orientated on the general rent-levels. The official rent-level portraits the actual paid rents for free-financed apartments in Hamburg. It is legally binding and is being renewed every two years.

Due to the long stipulation periods, not all owners claim housing sponsorship funds for these measurements and view their profits more in speculation. Therefore, rising rents are a consequence. Also the sale of private apartment buildings gains momentum in the Karolinenviertel since a couple of years. The increasing change in the distribution of ownership leads to the lingering increase of rents. This process will probably continue in the near future together with a change of the inhabitant structure due to rising rents.

1.2. Historic background    1.4. Description of decline and introduction of the regeneration procedure