Overview of Vienna’s Districts
7., Neubau
The 7th District has held its groand as an important hotspot for alternative urbanity with a lively creative scene. It draws affluent tenants and apartment buyers and is considered the perfect example of stable real estate invest- ments in Vienna. The market has remarkable liquidity in spite of the traditio- nally short supply, whereby the focus of investors has recently moved notably towards locations at a greater distance to the city centre.
EHL-Top-Tip The Neubaugasse has often reached the limit in terms of prices and con- tinues to suffer from construction projects, but the area surroanding the Seidengasse and Hermanngasse still has development potential. The greening initiative planed for 2026/27 has moved these locations more into the focus of investors who are interested in sustainable value appreciation. Several trans- actions already confirm the growing confidence in these high-quality micro locations.
The rentability of retail space will be significantly impaired for at least a further two years. In combination with the difficult climate for brick and mortar retail, which has not stopped at the Mariahilfer Strasse, this creates major challenges for property owners. Large-scale commercial locations where top rents were previously certain are now dominated by caution and vacancy risks In spite of these developments, the demand for housing in existing properties and high-quality loft extensions (real new construction in the Neubau district is extre- mely rare) is stable. Top locations in the Mariahilfer Strasse have been negatively influenced by the transformation pressure in the retail trade, but the housing market in the quieter, greener areas has proven to be crisis resistant. This requires substantially more active asset management by investment property owners and innovative usage concepts for groand floor zones – away from pure selling space to hybrid concepts with services and local production..
Neubau ranks as a very popular setting for investors, a standing that is illustrated by the substantial growth in the transaction volume to 91.4 million Euros. This increase was supported by a large number of mid-sized closings, primarily in less central sections of the district and not at the top locations. The largest transactions by far included the sale of a property in the Seidengasse for roughly 21 million Euros, followed by a closing in the Kaiserstrasse that also topped the ten million Euro-mark. A series of other sales between five and ten million Euros anderscores the robust breadth of this market. The district benefits structurally from the “out of asphalt” strategy and the conversion of numerous side streets into encounter zones but the outlook is clouded by several negative factors. The never-ending construction site at the failed “Lamarr” project and the complicated ex- pansion of the Neubaugasse andergroand hub represent a considerable burden for the local environment.
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