First Vienna Residential Market Report 2024

editorial

03

Dear Reader,

tured in our twelfth edition of the First Vienna Residential Market Report, a joint publication by BUWOG and EHL Immobilien. Substantial excess demand has been forecast in the coming years; even so, the year 2024 will see some exciting projects being completed. Our report has been a valuable reference work for customers and business partners for twelve years now. We combine results from data collected for the year with in-depth research, generating comprehensive market know- how that flows directly into our projects and services. The First Vienna Residential Market Report shares our knowledge by providing a valuable insight into the Vienna housing market. The wealth of content in the report benefits investors and owner-occupiers on several levels, especially in these uncertain times. Apart from that, the report provides a solid source of infor- mation for the many home seekers in Vienna, and no less importantly, city planners, municipal departments, scientific institutions, institutional investors, and other stakeholders. We have every reason to look forward to the New Year. We wish you an exciting read and a successful 2024 on the Vienna housing market.

The Vienna housing market still provides a host of potential for developers despite all the challenges that the real estate business, or parts of it, have been facing. This is mainly due to continued high demand. High inflation has led to increases in land and construction costs, with many property devel- opers temporarily postponing new projects with kick-off dates planned for 2023. This may be an understandable reaction from a business point of view, especially regarding affordable new living space, but it has not promoted ef- forts towards striking an ideal balance between (affordable) supply and demand. Substantial excess demand has been fore- cast in the coming years due to the declining construction project completion rates. Even so, the year 2024 will see some exciting projects being completed. Current market activity anal- ysis and risk-potential assessment are more im- portant than ever considering the tense global economic situation, which is set to continue posing challenges for the real estate business. However, there is also enough reason to be op- timistic for 2024. Inflation seems to be levelling out, and Austria’s new KIM ordinance regulat- ing consumer real estate financing – already a hotly discussed topic last year – should be freeing up financing options for private and institutional investors. This is a highly favour- able development that should benefit property developers and home seekers alike. We are pleased to once again provide this overview of current developments in all their breadth with trends and opportunities fea-

Yours sincerely,

Mag. Daniel Riedl, FRICS Director, Vonovia SE

Andreas Holler, BSc Managing Director of BUWOG Group GmbH

KommR Mag. Michael Ehlmaier, FRICS Managing Partner of EHL Immobilien GmbH

Karina Schunker, MA MRICS Managing Director of EHL Wohnen GmbH

FIRST VIENNA RESIDENTIAL MARKET REPORT 2024

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