Overview of Vienna’s Districts
7., Neubau
The transaction volume in Neubau has remained high despite the difficult underlying conditions, but prices are still under considerable pressure. A reversal of this trend is also dependent on comple- tion of many sizeable construction projects.
EHL Top Tip: Neubaugasse and side streets
The fashionable 7th District was hit disproportionately hard by the downturn on the investment property market. Rising
The outlook for new commitments appears to be very solid given the existing price lev- el. At apartment prices of 6,000 to 10,000
Despite the foreseeable improvements that will result from completion of the U2/ U3 underground hub and green redesign, the Neubaugasse is presently undervalued due to the continuing construction and pre- vailing scepticism over locations near the Mariahilfer Strasse. A number of properties should become available here at attractive prices during the next two years, above all due to sales by the financing banks.
vacancies and declining rents for retail space on the Maria- hilfer Strasse have increased the pressure on prices at the most expensive locations, while the embarrassing fate of the Lamarr luxury project and the uncertain future of the semi-finished
The “fashionable“ Neubau dis- trict was hit especially hard by the market downturn – but that also opens new opportunities.
structure represent an additional strain. Other construction sites (e.g. the U2/U3 underground hub at the Neubaugasse) also have a negative influence on living conditions in the area. And, last but not least, the district does not appear to be as popular as before. The result has been a decline in the price level – apart from individual property ex- ceptions – to a maximum of 6,200 Euros/ sqm and roughly 3,000 Euros/sqm on the broader market, with three per cent as the minimum for marketable yields. Trans- action activity is surprisingly lively, with turnover reaching nearly 100 million Euros since the beginning of 2024. The largest transaction in 2024 was the sale of the Adlerhof by S IMMO for 48 million Euros.
Euros/sqm, the difference to investment property prices is large enough to generate sound earnings with the separation and sale of individual units. Above-average value appreciation is projected for the long-term, especially in the more central areas of the district. One positive factor is the impending solution for the Lamarr. The alternative preferred by the investor – luxury apart- ments instead of a luxury shopping mall – is a classical “Plan B” solution but will soon bring this never-ending building site to a close, and the project will definitely have a positive effect on the image of Neubau as a top residential location.
Neubau
Investment prop. prices 3,700 to 6,200 EUR/sqm
Prime Yields
1.9 to 3.0 %
Monthly rents (net) in EUR/sqm
Apartments
Ø 15.25
Offices
13.00 to 20.00
Retail space A locations
30 to 120
Retail space B locations
11 to 28
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Investment Property Report
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