MARGARETEN
Investment property prices Yields
EUR 3,000 to 5,500/sqm 2.0 to 2.9 %
Monthly rents (net) in EUR/sqm
Apartments Offices Retail space
Ø 12.45 10.0 to 16.0
12–22
A locations B locations
6–10
The 5th District – the only district within the beltway that does not border on the city centre – is no longer an insider’s tip. This market has lost momentum but performed relatively good in a difficult environment. 5., Margareten
U2 extension: Three more years of waiting
Matzleinsdorfer Square. In only three more years, the first subway train will travel diagonally across the district. „Top locations near the Pilgram- gasse and Matzleinsdorfer Square.“ In spite of the relative price stability, it is import- ant to note that investment properties in the 5th District are also difficult to sell in the current market environment. The outlook is, however, favourable for long-term oriented investors because very good properties with extremely so- lid future prospects can be found on the market. Preferred locations include the areas adjoining the future U2/U4 junction at Pilgramgasse and the nearby entertainment hotspot in the Schlos- squadrat as well as the newly built Reinprechts- dorferstrasse underground station in the district centre.
Vienna‘s 5th District was still considered a working-class district when its neighbours on the other side of the Wiental had long since gained a position as a hip residential area with a bobo image and appropriate gentrification tendencies. Investors’ search for locations with an upward po- tential, but more so the substantial improvement in the district’s connections to the public trans- portation network have fundamentally changed the market. Margareten has gone through a rapid catch-up process that has been responsible for very positive development in both the transaction volume and square metre purchase prices. The prices for investment properties are still lower than in all other centrally located districts but the spread is smaller than ever before. Properties in this district have remained relatively untouched by discounts, but have instead bene- fited from price increases. The lower end of the price range, in particular, has remained relatively stable versus the 2021 record year at EUR 3,000/ sqm. “Bargain buys“ are a thing of the past and reflect the soon-to-be-completed extension of the U2 underground line from the Pilgramgasse intersection to the Reinprechtsdorferstrasse and
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