Average rental prices for first occupancy and purchase prices (in euros/sqm)
6,000
14
13.90*
5,855
5,810*
5,000
13
12,87
4,829
4,000
12
4,454
12.42
12.21
3,000
11
2,000
10
2020
2021
2022
2023
Rental prices
Purchase prices
Source: EHL Market Research | Q4 2023
*Preliminary data
Inner-city districts In the districts within the Gürtel, the supply of investment apartments has been very low for years. While a few major projects provided at least a few investment opportunities until 2022, the supply has currently declined massively. The reason for this is not only the limited potential for redensification in central, urban areas, but also the fact that the price level is characterized by strong interest from owner-occupiers and is therefore higher. Yields are therefore usually lower for rental properties. Nonetheless, the purchase is also interesting from an investment point of view, as there are above-average, long-term prospects for value appreciation due to the virtually irreproducible supply. In essence, individual micro-locations, such as the parts of the 3rd district close to the Gürtel, are particularly attractive. Due to the increased rents, good yields can be achieved in these locations, which are certainly comparable with projects in peripheral locations.
Outer districts In the urban development areas north of the Danube and in the south (Liesing, outer areas of the 10th district) there is the largest supply of investment apartments - mostly in relatively large projects with more than 100 residential units. Investments are attractive in these districts, as the demand for rental apartments in the lower cost range is very good. However, investors should pay particular attention to the micro-location, especially in the area districts. If a particu- larly large number of residential buildings are expected at a certain location, this could mean lower rent increases in the medium term. On the other hand, a strong influx, as is currently taking place in Floridsdorf, for example, means that good demand for rental apartments can be expected and therefore alsomakesinvestmentapartmentsattractive.
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© Daniel Hawelka
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