Overview of Vienna’s Districts
14., Penzing
The strong upward trend in the 14th District during the years preceding 2022 has been followed by widely differ- ent developments. Demand is lower in the more outlying areas and average residential locations at the present time, while the most attractive locations near Schönbrunn are comparatively stable.
Developments on the investment property market in the various sections of Penzing are more diverse than in any other district. The district is wide-ranging with a stock of investment properties that includes urbane locations near Schönbrunn Palace as well as suburban quarters near Hütteldorf and extends over more than five kilometres along the Westausfahrt, a major traffic axis that leads outside the city. This diversity is hardly surprising, even when the differenc- es between the various locations received less attention than deserved in boom phases. The supply of properties on the market is sufficient at present and is reflected in stronger differentiation, whereby the central locations are developing much better than the more outlying sections of the district. This has also led to a broad gap in the prices for investment properties that ranges from 2,300 to slightly over 3,500 Euros/sqm. The yields for properties with a potential for rental increases lie between 2.3 and 3.3 per cent. With ten transactions and turnover of 33.6 million Euros in 2024 and a further 10 million in the first months of 2025, developments in Penzing were similar to the other districts on Vienna’s
outskirts – but represent a significant decline compared to transaction activity in the years up to 2022. The largest trans- action was the sale of a property in the Dreyhausenstrasse by Erste KAG for 6.25 million Euros, while further major closings were noted in the Goldschlagstrasse and Linzer Strasse. The basically high potential of the central sections of the district is also illustrated by several successful new construction projects – for example: the development on a section of the Körner military barracks near the Hütteldorfer Strasse, the “Park in Sicht“ in the Goldschlaggasse, a project on the grounds of the former Salesianer cor- porate headquarters, the Kennedy Gardens by BUWOG, and the “Alice im Cumberland“ between the Hietzing underground station and the Penzing rapid transit railway station. Prices from 6,000 to 7,000 Euros/ sqm can be realised on new construction, and a similar price level is also possible in modernised investment properties. EHL Top Tip: Alt-Penzing Alt-Penzing, the idyllic district core be- tween the Hadikgasse, Cumberlandstrasse, Schönbrunner Schloss Strasse and Ken-
nedy Gardens, enjoys a special position. Extensive greening, traffic reduction and the redesign of the smaller pedestrian zone in the Diesterweggasse have increased the value of the location and given it a near village character. The social structure is also excellent, the short distance to the U4 Hietzing station and Schönbrunn are further plus points that make Alt-Penzing a lower cost alternative to the neighbouring Alt-Hietzing with comparable housing and a high quality of life.
Penzing
Investment prop. prices 2,300 to 3,600 EUR/sqm
Prime Yields
2.3 to 3.3 %
Monthly rents (net) in EUR/sqm
Apartments
Ø 13.90
Offices
11.00 to 16.00
Retail space A locations
10 to 23
Retail space B locations
6 to 11
54
Investment Property Report
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