The Housing Market
Location surcharge and a plus for equipment features – how to optimise rents in older buildings
The limits on rents created by bench- mark regulations is moderated to a significant degree by the optional use of location surcharges. However, these location-based sur- charges are not the only way to generate additional rental income – special equip- ment features in the apartment and the entire building are reflected in higher admissible rents.
Examples are: • A second toilette • Washing machine connections • Open areas (balcony) • Central heating system • Telecommunications connections The upper limit on rent can, as a rule, be positively influenced by targeted invest- ments. However, correct and legally safe implementation requires expertise or specialised advising.
Parallel to the weakness in new con- struction, the creation of additional housing in existing buildings has de- clined considerably. Loft extensions are only profitable in the current market situation at very good locations and the refurbishment of existing apartments has become few and far between due to changes in legal regulations, for example the adjustment of benchmark rents.
Price development rent vs. ownership, first occupancy 2015-2024
15.00
6,900
14.00
6,200
13.00
5,500
12.00
4,800
11.00
4,100
2015
2016
2017
2018
2019
2020
2021
2022 2023 2024
Rent
Ownership
*Excluding 1010 Vienna
Source: First Vienna Residential Market Report| 02 2024
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Investment Property Report
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