OTTO Immobilien Compass

CW 15 - Apartment building market update

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Vienna apartment building market: healthy and so far "virus-resistant"  

But sales could be delayed

For the Vienna apartment building market, the experts at Otto Immobilien see no reason for concern due to the corona crisis. "The market is healthy and so far "virus-resistant", with the mood overwhelmingly positive. Many investors could now turn to lower-risk, proven investments and healthy markets. And on this front, Vienna, with its beautiful Wilhelminian apartment buildings, is one of the most attractive locations and safest havens worldwide", says Richard Buxbaum, Head of the Residential. According to his forecast, however, private apartment building owners in particular are likely to part with their houses in the near future, as they will have to cope with rent losses caused by the corona crisis.

The experts at Otto Immobilien see limitations in the timing: transactions are taking longer to complete and in some cases are being postponed, but not abandoned altogether. "The market will fundamentally pause a little during the corona period and there will be fewer transactions, but this is not due to a lack of demand. Rather it is due to the limiting circumstances", says real estate agent Jelena Pirker.  

The banks play a central role currently, not just on the property market. How slowly will loans be granted, will there be delays? On this front, Otto Immobilien anticipates a slow recovery from July 2020 onwards as banks and investors gradually get used to the new framework conditions and a new normal becomes established. There seems to be no danger of a possible property bubble.

The current market situation

The short supply of Wilhelminian apartment buildings and the persistent strong demand have recently pushed prices up (as of February 2020). Considered across the whole of Vienna, the average change in maximum prices was +8 % compared to last year. The lowest entry-level prices for the purchase of an apartment building can be found in the districts outside the ring road, but in the meantime no Wilhelminian apartment building in Vienna in an average condition is being sold at a price below Euro 1,770 / m².

The hot-off-the-presses edition of the First Vienna Zinshaus Market Report offers details research into the current prices and returns in all districts of Vienna, expertise on location surcharges and much more besides.

You can download the latest edition via the following link:

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Our experts:

Mag. Jelena Pirker & Mag. Richard Buxbaum

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