Overview of Vienna’s Districts
10., Favoriten 11., Simmering
The prices for investment properties in Favoriten, Vien- na‘s most populous district, and in the neighbouring Sim- mering have declined substantially since 2022 together with a general weakening of investor interest. The area surrounding the new Central Railway Station represents an exception with its comparatively good development.
Favoriten
Investment prop. prices 1,200 to 3,900 EUR/sqm
Yields
2.8 to 4.1 %
Monthly rents (net) in EUR/sqm
The investment property market in Favoriten with its impressive building stock initially shifted into the focal point of investors during the boom phase that char- acterised the years shortly before 2020. This situation has changed fundamentally in the current difficult market environment, and the 10 th District no longer plays a role in evaluations by potential buyers. Prices have declined much stronger than the Vienna average and are now not only lower than the peak values from the beginning of 2022 but also clearly below the 2020 and 2021 levels. The few transactions which closed in 2023 support these findings. One property each in the Senefeldergasse and Schrötter- gasse, both near the Favoritenstrasse and relatively far outside the city centre, were sold for square metre prices of almost 1,950 Euros and 1,575 Euros, respectively. In Simmering, a property in the Hauffgasse sold for less than 2,000 Euros per square metre despite its close proximity to the subway and rapid transit railway. The absence of buyers is notable, even under these conditions. The market in these districts can be expected to recover later
than in other, less peripheral districts. This is explained by the business model – demolish/rebuild – which currently prevails in Favoriten. It is reflected in a general lack of interest, while investors and developers who are still active can find sufficient opportunities in other areas of the city. The major exception from the difficult overall situation in these two districts is the area surrounding the Central Railway Station and the Sonnwend Quarter. Prices here are significantly higher and reflect inner city levels, but only in the immediate surrounding area. The positive influence of the booming Central Railway Station quarter disappears only a few hundred metres away. Commitments in Favoriten und Simmering require a much longer time horizon. These two districts are definitely interesting for the long term because they are much closer to the city centre than Floridsdorf or Donaustadt. In addition, new construction projects in Favoriten can frequently be realised on previously sealed ground at comparatively favourable land prices.
Apartments
Ø 12.75
Offices
10.50 to 23.00
Retail space A locations
15 to 55
Retail space B locations
5 to 12
Simmering
Investment prop. prices 1,500 to 2,200 EUR/sqm
Yields
3.0 to 4.3 %
Monthly rents (net) in EUR/sqm
Apartments
Ø 11.90
Offices
10.00 to 15.00
Retail space A locations
11 to 25
Retail space B locations
5 to 9
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Investment Property Report
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