Graz
The (investment) housing market in the Styrian capital is Austria‘s number 2 behind Vienna, which clearly dominates the market, and in recent years it has managed to set itself quite clearly apart from the markets in the other provincial capitals. While the market situation up to 2022 was characterized by a sharp increase in new space production and therefore longer utilization times, the tide has now turned: The supply has become signifi- cantly smaller, while the demand for rental apartments has tended to increase. This has a positive effect on the prospects for the realiza- tion of investment projects and also suggests that rents will rise again. Purchase prices are currently generally between 3,500 and 4,250 euros/sqm for high-quality projects, while
rents in good locations reach 10.65 to 12.15 euros/sqm. The districts of Lend, Eggenberg and Jakomini in particular offer interesting investment opportunities for buyers of invest- ment apartments, while in the city center there are mainly properties of interest to ow- ner-occupiers. Graz also has an above-average number of owner-builder models. This is due on the one hand to attractive state subsidies and on the other hand to the Bauherrenmodell PLUS, which can currently only be offered in Styria under the current legal situation. This model offers the opportunity to invest in a builder-owner model and residential property, whereas other builder-owner models only allow shares in a building without direct alloca- tion of apartments and without the creation
of residential property. (For details, see pages 26 and 27) The long-term prospects are also very positive: The renowned and continuously growing universities are just as important a location factor as the city‘s connection to the high-speed rail network, which will be comple- ted in a few years. This development will be reflected in rising demand for rental apart- ments and provide investors with lucrative returns.
Development of the average purchase prices of transacted investment apartments in Graz (in euros/sqm)
4,000
3,000
3,520*
3,473
3,449
3,220
2,000
1,000
2020
2021
2022
2023
©Telegram 71
*Preliminary data
21
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