Investment Property Report 2023

OTTAKRING Monthly rents (net) in EUR/sqm

Apartments Offices Retail space

Ø 12.15 10.0 to 14.0

10–20

A locations B locations

5–10

HERNALS Monthly rents (net) in EUR/sqm

OTTAKRING

HERNALS

Apartments Offices Retail space

Ø 12.20 10.0 to 14.5

Investment property prices Yields

2,800 to 5,000 EUR/sqm

2,300 to 5,200 EUR/sqm

10–15

A locations B locations

2.2 to 3.0 %

2.1 to 2.9%

5–10

The transaction volume in Ottakring had already started to decline in 2022, but the smaller neighbouring Hernals continued its recovery. The main focus in both dis- tricts is on investment properties suitable for development and buildings ready for demolition. 16., Ottakring | 17., Hernals

The “green“ Thaliastrasse as a catalyst for future projects

2022, especially at year-end. The buyers were primarily private investors who purchased fully let investment properties with refurbished base areas and developed loft space.

It seems like the Brunnenmarkt and Yppenplatz have been prime examples of the transformation from low-cost locations to hip quarters for deca- des. This analysis may be accurate, but cannot change the fact that the effects on these beltway districts have remained limited. The new prestige project – “Klimaboulevard Thaliastrasse“ – which is designed to make the district‘s most important traffic hub more attractive with additional trees, broader sidewalks, seating areas etc. – is also expected to provide new impulses for the more outlying areas in the district. These areas are expected to help revive the interrupted upturn on the investment property market. At EUR 2,800 to 5,000, square metre prices are lower than the other districts north of the beltway but higher than the prices in 2021. The market volume fell sharply to below EUR 100 million in 2022. Only smaller and medium-sized transactions closed – even the largest deal of the year, the sale of a property in the Payergasse, reflected the median volume category of nearly EUR 7 million. A surprising number of investment property transactions closed in Ottakring during

„A long wait for the U5 extension to Hernals.“

The investment property market in the neighbou- ring Hernals district – where, similar to Ottak- ring, the focus is on investment properties with development possibilities and potential demolition properties – has grown slightly to EUR 75 milli- on. The largest transaction in Hernals at EUR 10 million was located between Elterlein Square and the beltway. The U5 underground line, which will connect the district directly with the city centre, will bring only limited impulses for the market in the coming years. The first stage of construction on the U5 will start operations in 2026, but the station at Elter- lein Square and the local suburban railway station are only scheduled to open in 2032.