Overview of Vienna’s Districts
7., Neubau
The construction standstill and uncertain future of the Lamarr shopping centre project have intensified the prob- lematic situation in parts of the 7 th District since the be- ginning of 2024. In contrast, development in the tradition- al residential areas is generally stable and also includes the closing of larger transactions.
The path from Austria’s most prominent retail project to Austria‘s best known building ruin was short and painful, and the turbulence surrounding the Lamarr in the Mariahilfer Strasse has also had an impact on the local investment property market. The high-priced locations in the central section of the Mariahilfer Strasse have been particularly hard hit. The problem is less the construction stand- still, which prolongs the inconvenience connected with a major building site for the entire Mariahilfer Strasse, but rather the uncertain future of this ambitious project.
questionable and is now dependent on the concept realised by a future owner.
positive influence on the area surrounding the future U2/U3 hub in the Neubaugasse. Its image as an urbane district with an alternative atmosphere will support Neubau’s popularity as a residential location with a distinctive gastronomy and shopping scene.
The ”fantasy” for the surrounding locations – which provided hope for many owners and tenants in neighbouring properties – has disappeared. Five-digit square metre prices appear to be rather illusory for the foreseeable future. In contrast to the retail-based locations on and near the Mariahilfer Strasse, the classical residential areas in the district have remained stable and tend to perform slightly better than the Vienna investment
Neubau
property market as a whole. The largest transaction in 2023 was the sale of the Adlerhof in the Burgasse, an investment property primarily used for residential purposes. The follow-up project to the Lamarr will play a key role for the retail locations on the Mariahilfer Strasse.
The hoped-for upgrading and transformation into a second luxury location adjacent to the inner city has, at least, be- come questionable and is now dependent on the concept realised by a future owner.
Investment prop. prices 3,900 to 7,400 EUR/sqm
Yields
1.7 to 2.8 %
Monthly rents (net) in EUR/sqm
Apartments
Ø 14.55
Offices
12.00 to 20.00
Retail space A locations
30 to 120
The hoped-for upgrading and transforma- tion into a second luxury location adjacent to the inner city has, at least, become
The completion of the U2 subway line extension to Matzleinsdorfer Platz, which is scheduled for 2028, will have a strong
Retail space B locations
8 to 25
38
Investment Property Report
Powered by FlippingBook