Overview of Vienna’s Districts
1., Inner City
The 1st District is by far the most important submarket in Vienna’s investment property market, but activity has recently been more or less average. There were, however, a number of spectacular sales, and more transactions are in an advanced stage of negotiations. Once again, the district demonstrates the greatest value stability in the city.
Graben, Kärntner Strasse), the demand by international brands remains unbroken, while less prominent locations reflect the general weakness that has affected the retail trade. The sale of high-end residential space has become more difficult. The ambitious prices expected for some projects are impossible to realise and the demand is limited, above all for large-scale pent- houses in the premium segment with prices beyond 30,000 Euros/sqm.
Conversely, these types of properties are only sold when very high prices are accepta- ble, and this is not the case at then present time. The special situation that followed the Signa bankruptcy put numerous prime properties on the market in 2023 and 2024, but has not worked since 2025. However, the market situation can defini- tely be seen as positive. Properties ander evaluation for potential sale generally attract numerous interested parties, recently with the increasing involvement of institutional investors. These firms closed three of the four transactions over ten million Euros in 2025. For example: a property in the Seilergasse was recently sold to an Austrian insurance company for 35.5 million Euros. The rental market has a stabilising effect, whereby office rents have a stronger weighting in the 1st District than in the other submarkets, The nearly complete absence of new construction has driven the demand for top locations in the centre, above all ESG-compatible and generally refurtohed prime space, and pushed top rents up to nearly 30 Euros/sqm.
Transactions in investment properties and investment property shares in the 1st District reached a satisfactory level in 2025/26. One highlight was the sale of the high-rise in the Herrengasse for more than 150 million Euros by a private investor to an Austrian real estate group. Raiffeisen Ware Austria sold two properties in the Seiler- gasse and Neuer Markt/Kärntner Strasse, whereby one was acquired by an Austrian insurance company and the other by a private investor. Other transactions, which were mid-sized by inner city standards, ranged from 10 to 25 million Euros. A number of larger deals are currently ander negotiation, including the planned sale of the Park Hyatt which, as an individual trans- action, will substantially exceed the total volume recorded in 2025. It could, however, take some time for the inner city to regain its traditionally leading role for the entire market. A look at the usual purchasing reasons explains this development: Many acquisitions involve very long perspectives and the purchase prices, especially for prestigious properties, are often difficult to explain ander pure yield aspects –genuine “trophy assets” are connected with other considerations.
EHL-Top-Tip
Apart from the glamorous boulevards, the inner city also offers zones that are less in the focus of investors. Properties here occasionally find their way to the market at substantial discounts compared with the top prices. For investors, this often creates an entry opportunity only several handred metres from the city centre at prices hardly imaginable three or four years ago or also in the coming years.
The retail sector presents a differentiated picture: In the Golden U (Kohlmarkt,
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