Hamburg's Public Housing Provider Plans Major Redevelopment in Billstedt: Around 300 Subsidized Apartments to Be Built on Möllner Landstraße—Old 1950s Stock to Be Demolished
Hamburg's Billstedt district to get 300 energy-efficient homes in major redevelopment
Pressure on Hamburg's housing market remains intense, with affordable homes in particularly short supply. Demand has outstripped supply for years, and now SAGA Unternehmensgruppe, the city's public housing provider, is responding with a major new construction project in the Billstedt district. Around 300 publicly subsidized apartments are set to be built along Möllner Landstraße and Cottaweg, near the Merkenstraße subway station.
To make way for the new development, 176 existing apartments from the late 1950s will be demolished. The goal is to nearly double the residential space on SAGA's own land. According to the company, the current buildings—multi-family homes, row houses, and so-called duplex units—no longer meet modern energy efficiency standards or climate protection targets. Accessibility and contemporary floor plans are also only partially achievable in the existing structures.
Decision Follows Extensive Review: Demolition Not Expected Before 2029
SAGA states that the planned redevelopment followed a thorough assessment, including an examination of whether an energy-efficient retrofit would be economically and socially viable. The conclusion: Renovation would have required extensive structural interventions and led to significant rent increases without fully addressing the buildings' fundamental deficiencies.
Against this backdrop, the company opted for replacement construction. Preliminary planning approval has already been secured, though concrete timelines remain unclear. Demolition is not expected to begin before 2029.
More Family Housing and Sustainable Energy: What's Planned
The project envisions energy-efficient multi-family buildings ranging from four to eight stories. Unlike the current stock, the new development will offer a diverse mix of housing, including larger, family-friendly layouts and barrier-free units for seniors. Heating will be provided via geothermal or district heating systems.
Construction will proceed in phases, with SAGA coordinating relocation chains within the neighborhood to minimize disruption. A district garage with around 100 parking spaces is also planned to ease parking pressure in the area. Initial net cold rents will depend on subsidy conditions and have yet to be finalized.
SAGA Guarantees Right of Return for All Tenants
At a tenant meeting in mid-February, the responsible SAGA office briefed residents on next steps. All households will receive tailored relocation offers within the existing portfolio, with support throughout the moving process. A specialized subsidiary will handle tenant assistance.
SAGA has also pledged that all current tenants will have the right to return to the new buildings once completed.
