NEUBAU
Investment property prices Yields
EUR 4,000 to 7,800/sqm 1.6 to 2.5 %
Monthly rents (net) in EUR/sqm
Apartments Offices Retail space
Ø 13.70 11.0 to 18.0
30–120
A locations B locations
6–25
Market activity in the trendy Neubau District has slowed significantly since mid- 2022, with the result that the upper end of the price range is now slightly lower. However, this extremely popular residential neighbourhood still holds very good perspectives for the medium-term. 7., Neubau
Institutional investors and real estate developers are again offering proper- ties for sale The investment property market in the tren- dy Neubau District has been one of the city’s most active submarkets for many years, but the transaction market has virtually come to a standstill since mid-2022. This is due, on the one hand, to the difficult market environment and, on the other hand to the near complete absence of impulses that were previously responsible for a certain investment fantasy. Prices have settled between EUR 4,500 and 7,000/sqm, which still makes Neubau one of the most expensive among Vienna’s centrally located districts. The previous exceptions, which included over EUR 8,500/sqm for high street locations, are now only seen infrequently. The selection of properties was larger in 2023 than in earlier years because of a growing inte- rest to sell on the part of institutional investors and real estate developers. The buyer side remains cautious, but well-developed, high-qua- lity investment properties are still in demand and
transactions are possible – as is demonstrated by the recent sale of a well-maintained, revitali- sed investment property near the Stiftskaserne military facility to a private investor.
„The medium- and long-term perspectives are fully intact.“
Consequently, the medium- and long-term per- spectives for this market are absolutely intact. Several private foundations, in particular, are interested in extensively developed and moder- nised properties. They may be waiting for even more favourable entry prices, but this scenario seems even more unrealistic after the decision for the scheduled indexing of benchmark rents, and financially strong buyers have little reason to postpone planned transactions. Properties near the Mariahilfer Strasse, in particular, are extre- mely popular and yields up to at least three per cent are definitely realistic.
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