Booming rental market drives growth in revenues and yields
Average net purchase prices for sold investment apartments in comparison (in Euros/sqm)
7.000
6.695
6.303
5.749
5.000
5.258
The rental market – not only in Vienna but also in other major Austrian cities – is currently characterised by a strong demand overhang. Investment apartment buyers benefit from minimal vacancies, record level rents and considerably higher yields. And the outlook is positive.
4.540 4.568
4.197
3.000
3.657
1.000
Vienna
Graz
Linz
Klagenfurt
Two years of rents clearly above the inflation rate have pushed Vienna’s apartment rental market to an absolute record level. Square metre rents have risen to a new high, vacancies in modern apartments are nearly non-existent, and vacant units are generally re-let within a very short time. The underlying reasons include a substantial decline in the supply of new space as well as the strong demand resulting from population growth and the still difficult lending conditions for apartment purchases. Investment apartment buyers benefit from this market situation through unusually positive framework conditions with very low vacancy rates, solid cash flows with a potential for improvement on re-letting and – since apartment prices have not risen as much as rents – substantially
higher yields than during the housing construction boom years up to 2022.
recovery of new construction. The 15th and 16th districts profit to a lesser extent from location-related effects because the supply of apartments in the popular 14th district is currently much lower than two or three years ago. Renters are also more willing to compromise regarding transport connections – instead of the previously essential close proximity to an under- ground station, good tram connections are now also acceptable. The re-letting situation is also very positi- ve: Price adjustments of 5% to 10% at inner city locations are possible, even when the apartment is not a first-time occupancy. Rental adjustments have also been seen at peripheral locations – whereby the lower the supply, the higher the increase.
2024
2025
Source: EHL Market Research | Q2 2026
For standard market investment apart- ments – modern, well equipped units up to 50 sqm at above-average locations – square metre prices of € 15 to 17 (net), excluding operating costs – have become the norm. A three-year comparison shows an increase of over 20%, and market data lead to expectations that this upward trend will continue into 2026 and at least up to the end of 2027.
Local differences in rent levels are currently minimal because the low
supply has also led to strong demand at decentralised locations. Projects in the districts north of the Danube River and in parts of Favoriten and Simmering benefit from this situation due to the recent
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Ljuba-Welitsch-Promenade 22 1030 Wien
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