Overview of Vienna’s Districts
14., Penzing
The real estate market in the 14 th District benefited from developers’ interest in locations for new con- struction projects in the years immediately preced- ing the sharp rise in interest rates. The resulting collapse of development activity has also affected the investment property market, which has been confronted with a decline in volumes and prices.
Penzing is undoubtedly the hotspot for new residential construction among the western beltway districts. A few exciting examples of large-scale projects include the partial development of the Körner mil- itary barracks, BUWOG’s Kennedy Garden on the former Siemens plant grounds, and the “Paul&Ina“ at the former Salesiner headquarters on the Linzer Strasse which
A market-acceptable yield of 3.5 per cent is currently only possible at entry prices of 2,000 to 2,500 Euros per square metre, but there are essentially no sellers in that range. The market will only return to earlier highs when the development business rebounds – and that will only be the case when there is an increasing demand for condominiums.
In areas with a good middle class social structure like Altpenzing or with slight discounts like Baumgarten, the sale of apartments, in particular, can generate very good earnings and yields.
will be completed this year. A variety of smaller new construc- tion projects followed in 2022 at sites where older buildings were demolished. The setback in new construction has, as a result, had a particularly severe impact on the investment property market in the 14 th
In areas with a good middle class social structure, the sale of apartments, in particu- lar, can generate very good earnings and yields.
Penzing
Investment prop. prices 2,400 to 4,600 EUR/sqm
Yields
2.3 to 3.3 %
District. A number of notable transactions closed in 2023, including the purchase of an investment property on the Linzer Strasse for 4,600 Euros per square metre or in the Goldschlagstrasse for a com- paratively low-cost of 2,900 Euros per square metre. Nevertheless, the market volume and prices are definitely trending downward.
Penzing has numerous medium and long term location advantages – two subway lines, two rapid transit lines, the regional and long-distance railway station in Hütteldorf, close proximity to the autobahn and the recreational area in the Vienna Woods – which combine to create excellent perspectives for value appreciation.
Monthly rents (net) in EUR/sqm
Apartments
Ø 13.40
Offices
10.50 to 15.50
Retail space A locations
10 to 23
Retail space B locations
5 to 8
50
Investment Property Report
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