Local Submarkets around Vienna
Focus on Vienna’s affluent suburbs and St. Pölten
The affluent suburbs surrounding Vienna
construction that is interesting from an invest- ment viewpoint regularly appears on the market. Depending on the quality and location of the property, the square metre prices for investment apartments range from 5,700 to 7,100 Euros. Other very good locations for investment apart- ments can be found in the slightly more distant Baden, a district with excellent traffic connections as well as numerous benefits provided by the local capital and nearby Bad Vöslau. These submarkets are large enough to support the rapid rental of new projects at good conditions and hold vacan- cies at a low level, even for subsequent rentals. Depending on the quality and location of the property, the square metre prices for investment apartments range from 5,200 to 6,200 Euros. Wiener Neustadt, with its nearly 50,000 residents, enjoys a special position: This university town with perfect rail connections to Vienna (23 minutes travelling time) and important central functions for the region – as well as high recreational value due to its close proximity to Vienna’s local mountains – has the makings for sustainable success with investment apartments. Depending on the quality and location of the property, the square metre prices for investment apartments range from 4,200 to 5,000 Euros.
The dynamics created by rising migration to Vienna has also led to strong population growth in the surrounding areas. This development has been supported by improved traffic connections to the capital city ( Railjet ) and by the boom in home office. The result has been an upsurge in the real estate market at many locations surrounding Vienna and a rapidly growing sector of private residential construction as an addition to the previously dominant combination of single-family homes and subsidised residential housing. Investment apart- ment buyers can now utilise an expanded range of attractive opportunities that are well-suited as diversification for an asset portfolio. The most important benefit is the lower purchase price level, which provides good protection against market fluctuations and, consequently, makes these in- vestments particularly safe. Investors‘ initial yields are hardly higher than in Vienna because the rents are correspondingly lower. The substantial differences between the various regions and individual locations in the more afflu- ent suburbs make a precise site analysis essential for successful investment. In addition to the micro-location of the property, other key factors include the population growth, traffic connections, quality of life and land reserves at the respective location.
The east
Simmering, a district in the east of Vienna, and Schwechat, a town directly on its borders, have a combined population of more than 20,000 and all the necessary requirements for a sustainable improvement in the real estate market. The city is well known for its close proximity to Vienna Inter- national Airport and its position as an important business site for Austria (based on the airport and OMV), two factors that are responsible for continuous population growth.
The south
Mödling, the district bordering Vienna on the south, is home to some of the most popular resi- dential locations in the surrounding regions. The high price levels in communities like Perchtolds- dorf and Hinterbrühl make most projects more suitable for owner-occupiers, but new residential
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