Overview of Vienna’s Districts
2., Leopoldstadt 20., Brigittenau
The “island“ between the Danube Canal and the Danube River, which successfully outperformed the market for many years, is now confronted with a decline in demand and prices similar to other cen- trally located districts.
Leopoldstadt
Investment prop. prices 2,300 to 5,600 EUR/sqm
Yields
1.8 to 3.0 %
The investment property market in Leopoldstadt and, to a certain extent, also in neighbouring Brigittenau was character- ised by faster growth than other districts for many years. This trend was supported by close proximity to the inner city, good transport connections with the subway and rapid transit railway, numerous green and recreational areas, and large urban development projects and new construc- tion. The Leopoldstadt and Brigittenau are, however, currently faced with a stronger decline in demand, even though the above benefits still remain. There were very few transactions in 2023, and investments in modernisation and expansion have dropped dramatically. A combination of factors is responsible for this decline: The two districts have few “trophy assets” that are largely crisis resistant and interesting for investors, independent of the currently more difficult financing situation. A second factor is the clientele, which is particularly interested in investments in the Leopoldstadt but hardly active at the present time. A third point is that the major urban development projects in these districts have come to
a halt and, to a certain extent, weakened the previously created decisive impulses for the investment property market. The environmental impact assessment for the massive Northwest Railway Station grounds has been completed, but the original schedule will be difficult to meet. The development of the Waterfront zur Donau, which was successfully started together with BUWOG’s Marina Tower, was hit hard by the cancellation of the contract between the city and the original operating consortium for the long-distance bus terminal and the planned upper level housing units. The Leopoldstadt has numerous location benefits to offer, which will again receive justified attention when the market recovers. They could form the basis for a noticeable trend reversal in turnover and prices, also because of the numerous investors who are committed to the 2 nd District for emotional reasons. The start of construction on the urban development quarter at the Northwest Railway Station is now scheduled for 2026, at the earliest, and will create added value for the surrounding area and the entire district.
Monthly rents (net) in EUR/sqm
Apartments
Ø 13.35
Offices
11.00 to 22.50
Retail space A locations
13 to 26
Retail space B locations
5 to 11
Brigittenau
Investment prop. prices 2,000 to 3,800 EUR/sqm
Yields
2.6 to 3.5 %
Monthly rents (net) in EUR/sqm
Apartments
Ø 12.65
Offices
10.50 to 21.50
Retail space A locations
10 to 20
Retail space B locations
5 to 9
28
Investment Property Report
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