Union Investment Real Estate Breaks Ground on Quartier Wandsbek Markt Mixed-Use Transformation in Hamburg
HAMBURG, July 3, 2026 — Union Investment Real Estate Real Estate marked the official start of construction on Quartier Wandsbek Markt, a large-scale mixed-use transformation project in Hamburg's Wandsbek district, with a cornerstone ceremony attended by city and district officials on Thursday.
The project, held within the portfolio of Union Investment's open-ended real estate fund UniImmo: Deutschland, will redevelop the former Karstadt property at Wandsbeker Marktstraße 63–65 into a multi-use quarter comprising 126 residential apartments, office space, retail, and a dining hall. The Wandsbek District Assembly's approval of the zoning plan cleared the way for the construction phase, which includes new buildings on the site of the already-demolished Karstadt parking garage as well as planned building extensions. Completion is targeted for the end of 2028.
A Civic and Commercial Partnership
The ceremony drew Hamburg's Senator for Finance and Districts, Dr. Andreas Dressel, along with representatives from the Wandsbek District and local politics. In remarks at the event, Dr. Dressel described the project as a neighborhood-shaping undertaking.
"Today, there is rightly a spirit of optimism in the Wandsbek Markt neighborhood: The laying of the cornerstone marks the start of an exciting transformation project involving new construction, renovation, and the addition of new floors," Dr. Dressel said. "The project will shape the neighborhood and visibly bring something new to the district."
Dr. Dressel also highlighted the civic dimension of the development, noting that parts of the Wandsbek District Office — the Bezirksamt Wandsbek — will occupy office space within the completed project. "Departments that were previously spread across various administrative buildings will be centralized there in the future," he said, adding that the space is designed to meet "the requirements of contemporary spatial concepts, modern work environments, and urban efficiency standards."
Scale and Scope of the Transformation
Union Investment describes Quartier Wandsbek Markt as currently one of the largest privately financed transformation projects in Hamburg. The Hamburg-based real estate company owns both the former Karstadt property and the neighboring QUARREE Wandsbek shopping center. Together they form the broader Wandsbek Markt retail and mixed-use node.
The development program includes residential units, retail spaces, office accommodation for parts of the Wandsbek district administration, and a dining hall at Wandsbeker Markt. The former Karstadt parking garage has already been demolished to make way for new construction, while building extensions and rooftop additions are also planned.
The scheme is part of a broader pattern of portfolio activity within UniImmo: Deutschland. In recent weeks, Union Investment announced the acquisition of the Källered Retail Park in Gothenburg, Sweden — approximately 19,400 square meters of retail — for the same fund. Separately, Union Investment and Nuveen Real Estate sold the 1511 Third Avenue retail property on Manhattan's Upper East Side.
Outlook
With the zoning plan now approved and the cornerstone laid, Quartier Wandsbek Markt enters its active construction phase. The completed development is expected to deliver a mix of residential units, office space occupied in part by the Wandsbek district administration, and retail and dining uses. Union Investment has not disclosed a total project cost or gross leasable area for the development.
Sources: Union Investment Real Estate — Cornerstone Ceremony for Quartier Wandsbek Markt (July 3, 2026)