Provincial Capitals
Attractive perspectives in the west and south
Graz
to owner-occupiers. Previously less noticed quar- ters, like Liebenau and St. Peter, have recently shown good development and projects regularly find their way to market. Graz also frequently promotes tax-optimised developer projects with subsidised units that are attractive, above all, for private investors in the upper tax brackets.
The provincial capital of Styria has established a firm position as the number two, after Vienna, on the Austrian market for investment apartments. Graz has been more successful than the other provincial capitals in attracting investors who have no personal connections to the city and are frequently looking to diversify an existing invest- ment apartment portfolio. This is a result of strong population growth – which reached 11.8 per cent from 2012 to 2022. The principally good econom- ic development of the city and the surrounding region has, in total, supported a substantial increase in the rental level and created corre- sponding yield opportunities for apartment buyers. The apartment offering is, however, sufficiently large, and a sizeable increase in rents is therefore not expected. The purchase prices in good quality new construc- tion projects generally range from 4,300 to 5,200 Euros/sqm, and rents in good locations range from 9.50 to 12.00 Euros/sqm.
CURRENT PROJECT
GATE 17 Triester Strasse 432, 8055 Graz Number of apartments: 510 Completion: End of 2023
Linz This provincial capital is more heavily influenced by major industrial complexes than any other major city in the country and therefore forms the heart of the booming central region in Upper Aus- tria. Linz is also becoming more important through its role as a university city. Exactly these two factors serve as the motor for population growth, which was particularly strong year-on-year with an increase of more than one per cent to 209,85 residents in 2022. For the apartment market, that means a sus- tainably secured demand basis: It is reflected in a solid rental market with square metre prices of 10.00 to 12.20 Euros and purchase prices of 4,400 to 5,300 Euros in good residential locations. The supply is/will be roughly one-third lower than the 2021 level in 2022 and 2023. However, a num- ber of previously started projects are expected to increase the offering in 2024 and 2025.
Average purchase prices for investment apartments in Graz (in Euros/sqm, based on transactions)
0 1,000 2,000 3,000 4,000 5,000
3,800*
3,449
3,004 3,220
2019
2020
2021
2022
*Preliminary data
Investment apartment buyers can find numerous interesting investment opportunities, above all in the Lend, Eggenberg and Jakomini quarters, while the offering in the inner city is directed primarily
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