50,504
Completed flats vs. population growth
20,000
20,000
20,284
19,435
18,022
15,600
15,280
15,000
15,000
16,309
13,230
3,494
4,566
4,182
10,000
10,000
9,770
5,396
3,523
5,930
2,551
5,810
5,000
5,000
2,748
3,411
6,731
6,497
4,784
1,565 834
3,499
0
0
2022
2023
2024*
2025*
2026**
Rent subsidised
Ownership
Rent privately financed
Source: EHL/Exploreal, 02 2024 | City of Vienna, 11 2023 *Forecast, **Currently known Population growth
Net rents substantially over 14 Euros in near-centre locations like the Josefstadt (8 th District) or Wieden (4 th District) are also very close to unregulated levels. The generation of added income at locations with a low or no surcharge is limited by strong demand, but the rental risk contin- ues to decline and there are practically no market-based vacancies.
The sale of condominiums is a very attractive strategy for investment property owners, even though demand is currently slowed by the high interest rates. A trend reversal – which appears realistic at the end of this year – could bring new life to apartments in older buildings with substantial benefits due to the lack of new construction.
The product “apartments in older build- ings“ is still part of the trend for potential condominium buyers.
The residential construction package and investment properties The residential construction package passed by the Austrian Parliament in March 2024 is designed primarily to in- crease new construction but also brings advantages for existing buildings. The most important measures for investment properties include the favourable tax treatment of energetic renovation and the replacement of heating systems – the creation of housing through loft extensions is supported by increased de- preciation over a period of three years.
The sale of apartments will also be facilitated by the elimination of ancillary purchase costs like land register and lien rights filing for most apartment buyers.
Vienna | 2024
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