Hannover's Economic Policy in Focus: Innovations, Vacant Spaces, and Hereditary Lease Rights

Strengthening Mixed Use – Activating Vacant Spaces in the City Center

In February 2026, Hannover's city center became the focus of several political initiatives. The proposal by the SPD faction (Doc. No. 2376/2025) aims to strengthen mixed-use development and activate vacant areas. With a clear focus on pop-up concepts, social and cultural projects, and commercial uses such as retail and restaurants, the goal is to create lively and diverse neighborhoods.

The administration is tasked with submitting a package of measures that includes funding options, support frameworks, and a timeline for implementation. The objective is to relieve the housing market, increase safety, and create more flexible usage options. The concept builds on the city center strategy "Think Center Differently," which was already adopted the previous year.

The SPD faction argues that a diversified mix of uses improves the quality of stay while simultaneously strengthening the local business location. A report on implementation is planned within 12 months to ensure transparency in the progress.

Hereditary Lease Rights as a Tool of Land Policy

Another focus was the fundamental allocation of municipal land via hereditary lease rights (Doc. No. 0253/2026). The faction Bündnis 90/Die Grünen + Volt + Piratenpartei is calling for the city to stop selling municipal plots and instead to allocate them via hereditary lease rights. This instrument allows the city to steer urban development in the long term and secure socially acceptable housing.

The administration is to submit a concept for implementing the new land policy by the summer break of 2026. This includes, among other things, the introduction of a hereditary lease interest rate, the duration of the lease (up to 90 years), and the development of criteria for exceptions. It is also being examined whether Hannover should join the German Hereditary Lease Rights Association to exchange experiences with other cities.

Hereditary lease rights are seen as a central instrument of socially acceptable and sustainable land policy. Role models include cities such as Hamburg, Munich, or Berlin, which have already successfully used this model. By allocating land to cooperatives and socially oriented developers, affordable housing is to be created in the long term.

Amendments to the Special Use Ordinance

The amendment to the Special Use Ordinance (Doc. No. 2100/2025) introduces a range of regulations that particularly affect local retail and the restaurant sector. In the future, it will be allowed to hold up to five one-day promotional events in front of shops per year. In addition, a non-discriminatory and transparent selection process for sales stands is being introduced.

In the area of outdoor dining, clear guidelines for the design, lighting, and demarcation of seating areas are being set. Gas-powered heating devices such as heat lamps will be prohibited on public spaces in the future. Electric micro-mobility vehicles and bike-sharing systems may be deployed either at stations or in a station-independent manner.

The amendments aim to simplify the application process for special uses while simultaneously making public space more attractive and user-friendly. A digital application interface is to further optimize the process.

Outlook and Challenges

The adopted measures show that Hannover is actively shaping the future of its city center. The combination of mixed use, hereditary lease rights, and flexible special use regulations provides a broad arsenal to increase the city's attractiveness and generate economic impulses.

However, challenges remain: The implementation of these measures requires coordination, clear prioritization, and the involvement of diverse actors – from property owners through start-ups to socially oriented organizations. The success of this policy will not be evident overnight, but will unfold over months and years.