Klagenfurt
With a population of just 104,000, Klagenfurt is one of the smaller provincial capitals, but currently has even more construction activity than the much larger Graz. The price level in good locations is between 3,150 and 3,950 euros/sqm, which is below that of the other investment markets, meaning that investors can achieve attractive yields with rents of 9.60 to 11.00 euro/sqm. From an investor‘s perspective, the Carinthian capital is interes- ting from both a short-term and long-term perspective. In the short term, the low housing prices and rents are an advantage in the cur- rent weak economy; in the medium and long term, Klagenfurt is already benefiting and will benefit even more than all other cities from the expansion of the high-speed Südbahn. Projects around the city center and along the
northern axis with its good infrastructure are particularly attractive for investment oppor- tunities. But real estate projects along the west-south axis also benefit from the proximity to the leisure paradise of Lake Wörthersee as well as the nearby university and Lakeside Science & Technology Park. Villach, which has significantly more inhabitants than the Lower Austrian provincial capital of St. Pölten, is still more of an insider tip. As a classic „railroad town“, the Draumetropolis will also benefit from the expansion of the high-speed rail net- work, and the booming Infineon plant will also ensure growth and inward migration.
Development of the average purchase prices of transacted investment apartments in Klagenfurt (in euros/sqm)
4,000
3,000
3,470*
3,334
3,160
2,802
2,000
1,000
2020
2021
2022
2023
*Preliminary data
23
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