Hamburg's Saga housing company posts 16% profit drop but boosts construction 300 above plan
Municipal giant Saga reported a 16% decline in net income to €238.1 million for 2025, as construction starts surged to 1,115 units, 300 more than planned, and average rents stayed at €7.56 per square metre.
New construction activity
Saga began construction on 1,115 new apartments in 2025, roughly 300 more than planned, according to the company's annual report. Medium-term target is 2,000 starts per year, CEO Thomas Krebs said. However, completions fell about 250 units short of plan due to missing building permits, drawn-out approval processes, and an unusually harsh winter snap, board member Snezana Michaelis noted.
The problem of housing shortages in metropolitan areas is solved only through building affordable housing.
- Planned
- 815 units
- Actual
- 1115 units
Rent levels
Saga’s average net cold rent was €7.56 per square metre, up 10 cents from the previous year. By comparison, Hamburg’s overall average net cold rent stood at €9.11 (according to a housing industry study) or €9.94 (based on the rental index of April 2025, which includes rents raised or newly agreed in the past six years). Saga’s portfolio thus remains well below the city-wide average.
- Saga
- 7.56 €/sqm
- Hamburg (Mietenstudie)
- 9.11 €/sqm
- Hamburg (Mietenspiegel 4/2025)
- 9.94 €/sqm
Financial result and payout
Annual profit after tax fell to €238.1 million, a 16% drop from the record €283.5 million in 2024. The decline was expected after the exceptional prior year, when provisions were not needed and could be reversed. Still, the result exceeded the company’s own forecast of approximately €200 million. Krebs struck a confident tone:
Saga keeps course in the crisis.
The company again paid €150 million in dividends to the City of Hamburg.
Political criticism
Heike Sudmann, housing policy spokesperson for the Left faction in Hamburg’s parliament, criticised the rent increases and called for outright reductions instead of higher payouts.
Better and more socially sustainable is a general rent reduction.
Lower Saga rents, she argued, would push down the official rent index, benefitting all Hamburg tenants.
Climate roadmap
Saga is pursuing a climate strategy to help Hamburg meet its legally binding target of climate neutrality by 2040, moved forward from 2045 after a 2024 referendum. The plan rests on four pillars: large-scale installation of solar panels, a switch to heat pumps and district heating for warmer buildings, energy retrofits, and smart energy management including smart thermostats. The company expressed confidence it can meet the 2030 interim climate targets.
