After years of stagnation, a solution has been found for the Paloma-Viertel and the vacant lot at Spielbudenplatz in Hamburg's St.

Pauli.

The municipal housing company Saga and real estate developer Quantum plan to take over the 6,000 square meter area from Bayerische Hausbau by the end of the year.

The project, set to be completed by mid-2028, includes 164 publicly funded apartments, a daycare center, a hotel with approximately 350 rooms, and spaces for creative industries, including a club.

Rental prices will range from seven to twelve euros per square meter, depending on the subsidy level.

The investment is estimated at around 200 million euros, though the purchase price remains undisclosed.

This development marks a significant step forward for the area, which has been a symbol of urban stagnation for years.