Monday, 26 October 2026
Union Investment has received the final construction permit for the redevelopment of a former Karstadt department store in Hamburg’s Wandsbek district, allowing work to continue on a project that will introduce 125 apartments alongside commercial and public-sector accommodation. The development, known as Quartier Wandsbek Markt, is scheduled for completion by the end of 2028 and forms part of the company’s UniImmo: Deutschland real estate fund.
The property is located at Wandsbeker Markt, close to the QUARREE Wandsbek shopping centre, which is also owned by Union Investment. The redevelopment will replace the building’s former department store function with a combination of residential, office and retail premises, together with space for district administration services and restaurants. The project is among Hamburg’s larger privately financed conversions of an established commercial property, although its total investment value has not been disclosed.
Construction activities had already commenced under permits issued for individual stages of the redevelopment. The former department store’s parking structure has been removed, along with sections of its rear exterior dating from the 1960s. Work to restore the historic frontage facing Wandsbeker Markt has now been completed, retaining part of the building’s original appearance while the surrounding property undergoes substantial changes.
The next construction milestone involves completing a ground-floor pedestrian passage by December 2026. Work on the main structure is continuing, with completion of the structural framework anticipated in autumn 2027. Additional upper floors incorporating timber construction are also planned, with work on this element expected to begin during summer 2027. Union Investment project manager Leon Wirges indicated that obtaining the final permit removes the remaining uncertainty surrounding the project’s construction authorisation.
The completed complex is intended to accommodate housing, employment, shopping and public services within a single urban location. By introducing residential and administrative functions into a former retail property, the development reflects a broader shift in how established shopping areas are being adapted to changing patterns of commercial activity and demand for centrally located accommodation.
