Overview of Vienna’s Districts
1., Inner City
Vienna’s inner city has generally withstood the market turbulence in satisfactory condition up to now. Buyers who are willing and able to pay high prices can always be found for prime properties, even under difficult conditions
The extremely challenging real estate market saw one exceptional transaction in 2023: The “Apple House” on the Kärntner Strasse changed hands for a surprising 31,000 Euros per square metre. This sale of this building at a high frequency location for nearly 100 million Euros and an impressive square metre price can, however, not be seen as a typical investment property transaction due to the high share of retail space. Then again, other deals like the sale of the Meinl House on the Graben, which also brought top prices, underscore the strong condition of the market in Vienna’s inner city. This surprising market resilience is due, on the one hand, to the availability of typical “trophy assets” and, on the other hand, to the long waits by high-wealth investors to acquire prime properties at prime inner city locations. Short-term yield expecta- tions play a less important role here just the same as costs or the availability of bank financing. On the (potential) buyer side, the action is dominated by highly liquid Austrian private investors and/or foundations.
Their interest is directed primarily to top locations near St. Stephan’s Square or prestigious addresses like the Freyung or
Private investors and institutional buyers with a long-term focus currently dominate the market, while developers and invest- ment property traders will only play a limited role in the near future.
Their interest is directed primarily to top locations near St. Stephan’s Square or prestigious addresses.
Am Hof. Yields ranging up to more than three per cent are possible in properties with a high share of commercial tenants, while yields of 1.0 to 2.0 per cent can be realised on properties with a majority of residential space. The higher retail component in the investment properties along the Golden U (Apple) and the high level of rents support higher yields, but this is only possible at particular high street locations. The strong interest on the part of investors will hold prices at a level comparable to the previous highs in 2021 and 2022. The search is currently concentrated on completely developed properties with stable tenants.
Inner City
Investment prop. prices6,800 to 12,000 EUR/sqm
Yields
1.0 to 2.0 %
Monthly rents (net) in EUR/sqm
Apartments
Ø n. a.
Offices
15.00 to 28.50
Retail space A locations
120 to 650
Retail space B locations
15 to 85
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Investment Property Report
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