The Vienna housing market continues to boom – the great demand for properties and the simultaneous decline of offers has led to a jump in real estate prices. In the meantime, the renter“s market is recovering, as Vienna is 42nd in the global comparison of rentals.
Vienna property values have risen in 2011 compared to 2010 to 9.2 percent. The condo market is limited at the moment, especially in urban areas. According to the website immobilien.net, offers from the beginning of 2010 until the end of 2011 fell throughout Austria by 30 percent. It was especially apparent in Vienna, where the number of properties that went back on the market rose by 50 percent.
Investor demand far surpasses supply, which led to the price increases in 2011, most notably in popular inner-city areas. Condos in the center of Vienna are at the top of the price range, at 6.203 Euros per square meter, followed by Döbling at 3.788 Euros per square meter, Josefstadt at 3.009 Euros, Neubau at 2.915 Euros, Landstraße at 2.840 Euros, and Alsergrund at 2.795 euros. The price dynamics of Vienna’s real estate market have surprised even real estate experts, as urban margins and less popular districts have seen an appreciation in value.
One reason for the booming real estate market could be the current economic situation. Many investors see real estate investment a safe bet at this time. City apartments continue to appreciate, whereas the value of a holiday house in the country is receding.
Positive rental market
The popularity of investment apartments has led to a relaxation of the rental market and a slight oversupply of rental properties. Average Viennese rental rates are between 8 and 16 Euros per square meter, where high differences between the districts can be seen.
ECA international, an HR consulting firm, compares the international cost of an 80-square-foot 3-room apartment in its new rent study, „Accomodation Reports“. Tokyo is the most expensive, and Vienna is the 42nd most costly market for apartments. After Tokyo, London comes second, followed by Moscow, Caracas, Hong Kong, and Singapore. In Europe, Vienna is ranked 16th, behind Copenhagen and Milan.
Rental costs are one of the biggest issues for expatriates, or businessmen who are sent by their company for a limited period abroad. According to ECA, most companies provide expats rental subsidies to accommodate for currency fluctuations as well as monetary compensation.
These changes in the real estate market in Vienna are being recognized by apartment administrations in Vienna. Moe Mahmoodian, managing director of < href="http://www.viennaresidence.com/en/furnished-vienna-apartments-rental-business">viennaresidence | business rental apartments noted, „currently, smaller apartments between 40 and 50 square meters are very much in demand.“ Another important factor is whether the apartment is within walking distance to public transport, reachable in no more than 5 minutes. The more central an apartment is, the more popular it is. viennaresidence.com rents apartments in Vienna City Centre as well as in the periphery of the city, ensuring a perfectly suitable accomodation for all guests.
Bildrechte: Photo: Andreas Hallerbach, flickr.com
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