Current Zinshaus-Market
A Talk with Philipp Maisel

The Strength of Equity Capital Is Crucial in the
Current Viennese Zinshaus Market

Philipp Maisel, Head of the Zinshaus Team at OTTO Immobilien, discusses how a Viennese zinshaus can still be marketed effectively, the future direction of the market, and why a Viennese zinshaus remains a strong investment option.

Mr. Maisel, in today’s market, it’s challenging to market a Viennese zinshaus. How can OTTO Immobilien support zinshaus owners in this process?

Philipp Maisel: We have decades of comprehensive expertise and a strong network to ensure zinshaus owners achieve optimal sales returns. We employ a tailored marketing strategy that is aligned with the specific characteristics of each property and current market demands. Through targeted buyer outreach and innovative marketing tools, we achieve optimal results even in challenging times.

How do you assess the current demand for a Viennese zinshaus? Who are the interested parties in today's market?

The structure of interested buyers has changed significantly over the past 18 months. Zinshaus developers used to dominate the market, but rising interest rates have slowed transaction activity. Banks are also more cautious with real estate financing. Currently, those with strong equity are at an advantage. The importance of family offices, foundations, and private investors who regularly finance properties with equity is increasing. These groups were often too slow for the previously fast-paced market, but now they find much more favorable conditions.

How do you believe the Viennese Zinshaus market will develop? Have prices hit rock bottom?

There are clear signs that we’ve reached the bottom. After a phase of significant price drops due to the shift in interest rates and the ECB’s consecutive rate hikes, the current market trends suggest stabilization. The anticipation of the first rate cuts later this year could revitalize the market, as lower financing costs will enable investors to offer higher prices. Assuming no new external shocks occur, prices should stabilize at their current levels and could see a modest rise toward the end of the year.

Given the current market situation, is it wise to put a Viennese zinshaus on the market now, or should one wait?

Since the beginning of the year, we have noticed a significant increase in activity among Viennese zinshaus buyers. The number of viewings is rising, and participation in our data rooms is also increasing. Overall, we are seeing more momentum in the acquisition processes, clearly signaling increased interest. From our perspective, now is a favorable time to enter the market. This gives owners the opportunity to benefit from current demand while hedging against potential future uncertainties. There is still very high market potential, especially for properties that have been in long-term private ownership.

Do you think that the Viennese zinshaus will remain an attractive form of investment in the long term?

Definitely. Viennese zinshouses are and will remain an attractive form of investment, holding a permanent place in investors’ portfolios and being valued in the long term. Each Gründerzeit building in Vienna has an inherent value due to its uniqueness. Strong rental demand, supported by the rent protection of the Tenancy Law, ensures stability even in times of rising rents. The ongoing interest from first-time buyers shows that the appeal of zinshauses is undiminished. Investors particularly appreciate the long-term investment horizon and the intergenerational value of these properties.