Overview of Vienna’s Districts
8., Josefstadt
Vienna‘s smallest district has proven to be par- ticularly crisis resistant: The stock of investment properties is first-rate and the price level surprising stable. The district has virtually no weak locations, and the interest of local private investors in invest- ment opportunities remains sound.
The investment property market in the Josefstadt, as seen from a long-term perspective, is characterised by great stability: Ownership changes are few and far between, many properties have been held by the same family for generations, and the transaction volume is manageable. With regard to price stability, this conclu- sion was again confirmed in 2023. A stable price level and generally moderate transaction volume are two sides of the same coin: The unexciting 8 th District had become more attractive to potential buy- ers than other submarkets under the current difficult conditions and raised considerable interest, especially on the part of conserv- ative investors who are looking more towards value conservation than to short-term yields. 2023 was an exception with an unex- pectedly high transaction volume. This is illustrated by a transaction at a top location in the Josefstadt, where a private Austrian buyer paid 4,000 Euros per square metre, largely with equity, for a property near the Laudongasse.
By no means would the current yield alone justify the price. The most important pric- ing factor for the Austrian private investor was more the excellent building substance, the prospects for long-term value appre- ciation, and the aesthetic quality of the building. In addition to pure economic aspects, the emotional component also plays an important role in the district’s traditional, bourgeois residential areas.
The completion of the U2/U5 expansion with the central station at Vienna’s city hall will create a certain, but not particularly strong impulse for the central locations.
The high transaction volume in 2023 can only be seen as an exception, and a return to the moderate level of previous years is to be expected.
Josefstadt
Investment prop. prices 3,000 to 6,900 EUR/sqm
Yields
1.5 to 2.7 %
The high transaction volume in 2023 can only be seen as an exception, and a return to the moderate level of previous years is to be expected. Prices should remain clearly above the market average in the near term, but a renewed upturn would lead to under-average performance.
Monthly rents (net) in EUR/sqm
Apartments
Ø 14.75
Offices
11.50 to 20.00
Retail space A locations
10 to 25
Retail space B locations
6 to 11
40
Investment Property Report
Powered by FlippingBook