Overview of Vienna’s Districts
10., Favoriten 11., Simmering
The investment property market in these two larger districts is comparatively small, even in good times. Buyers’ interest is currently concentrated on a few locations near the Central Railway Station and around the Favoritenstrasse and Simmeringer Hauptstrasse.
Favoriten
Investment prop. prices 1,400 to 3,200 EUR/sqm
Prime Yields
3.0 to 4.7 %
Favoriten and Simmering are undoubtedly not the most popular residential locations in Vienna, a status that is also reflected in the moderate rental and price levels on the investment property market. Peak prices have recently fallen more or less to a level normal for many other districts at roughly 3,000 Euros/sqm. Square metre prices in Favoriten usually amount to 2,000 Euros/ sqm or slightly less, while the benchmark in Simmering is lower at 1,500 Euros/ sqm. Yields have risen substantially, and the lower threshold lies at roughly four per cent. Interest is limited and directed primarily to the area surrounding the Central Railway Station and continuously developing Sonnwend quarter. In the Favoritenstrasse, investors are focused on properties consisting chiefly of office and commercial space when yields reach at least 5.5 per cent. In both districts, the demolish/rebuild business model plays an important role. The investment properties in Favoriten and Simmering are not decisive for the cityscape and frequently in poor condition.
Permits for the demolition of properties in the 10th and 11th Districts are, as a result, easier to obtain than in the central districts. Numerous locations suitable for new residential construction can also be found here. Developed sites are interesting, above all for non-profit building societies – especially in larger areas with a capacity for 60 or more units. EHL Top Tip: Favoritenstrasse from Kepler to Reumann Square The strong negative image of the Reumann Square has consequences for the entire district market, while key location advan- tages like perfect traffic connections to the city centre, the short distance to the Central Railway Station and the pedestrian zone in the Favoritenstrasse are underrat- ed. However, the “problem zones” between Kepler Square and Reumann Square hold opportunities for long-term investors. Investments in these areas need to focus less on the latest newspaper headlines and more on that fact that properties are available here at extremely favourable prices only eight minutes via underground to St. Stephen’s Square.
Monthly rents (net) in EUR/sqm
Apartments
Ø 13.05
Offices
11.00 to 16.00
Retail space A locations
15 to 45
Retail space B locations
5 to 15
Simmering
Investment prop. prices 1,500 to 2,400 EUR/sqm
Prime Yields
3.3 to 4.6 %
Monthly rents (net) in EUR/sqm
Apartments
Ø 12.15
Offices
11.00 to 15.50
Retail space A locations
11 to 25
Retail space B locations
5 to 9
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Investment Property Report
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