The maze of narrow alleys and dingy, cobblestone streets that surrounds the red-light district in Hamburg, Germany, has been attracting revellers for years. Lined with dozens of sex shops, strip clubs and prostitutes preening behind windows, the gritty area known as the Reeperbahn is as popular as the Michelin-starred restaurants and upscale boutiques that encircle the Alster, the centuries-old lake at the centre of this affluent port city.

Despite its notorious reputation, however, the Reeperbahn is gaining some unexpected new residents. As property values have risen sharply in Hamburg during the past decade, smart residential buildings have increasingly crowded the area. The latest addition is the Bavaria, a 28,000-sq metre complex that includes dozens of luxury residences with panoramic views of the city, and a boutique hotel designed by architect David Chipperfield.