Vienna villa market:

Another winner in the corona crisis

Villas and detached single-family houses in all price categories are and remain very popular and sought-after dwellings for many people – even more so given the corona crisis. “My assumption is that the Vienna villa market will grow more attractive over the short, medium and long term,” says Richard Buxbaum, Head of the Residential.

Sought-after and attractive

The reasons for this are obvious: “In turbulent times, people desire a little piece of freedom and security more than ever, and living in a home of one’s own with a garden is just that. To be able to live without any major restrictions, use your own garden and provide your family with a safe home are all excellent reasons why there is still a strong demand for houses and villas in Vienna”, reports villa expert Sonja Kaspar. This is why Otto Immobilien predicts that prices will continue to remain stable in the coming months.

Stable in value and secure

In addition to the self-sufficiency and comfort of owning one’s own villa, there is another pro: “Many people find it important to invest in solid and stable assets right now, for the security of their family and in preparation for the next crisis – if and when it occurs”, says Buxbaum. The country’s capital is the ideal location for an investment. “Viennese residential properties are among the safest investments in the world. The partners of our globally active Knight Frank network have confirmed this”, says Buxbaum. The corona crisis could lead to renewed interest from international buyers. “The purchase of a villa as a second residence in Vienna as a ‘safe haven’ in Europe can be a strong incentive for foreign buyers in the near future”, says villa expert Michaela Orisich. “Thanks to the international media coverage about how the corona crisis has been managed, foreign real estate buyers now see Austria as a model country”, adds Buxbaum.

Short supply

However, the villa expert is sceptical as to whether the supply can keep up with the increasing demand. “The question is whether enough houses and villas will come on the market that meet the requirements of potential buyers”, says Buxbaum.  In fact, many homeowners find it increasingly difficult to manage their properties as they get older, leading them to rethink their situation. “Many parents don’t want to stay on alone in a big house when their kids are grown. They often lack the motivation to have renovations done or tend to the garden on a regular basis”, says Kaspar. And it might not be worth it to let out the house, at least for the moment. “The current crisis has shown that there is a default risk even when letting houses”, Kaspar adds.

*A villa in the stricter sense according to OTTO Immobilien is a single or multi-family house, usually detached, or residences constructed on corners or along streets. It has a spacious garden; no condominiums are established on the property. Both villas and single-family homes reflect the individual lifestyle of its residents and are adapted to their respective needs and life circumstances.

** Average purchase price: 50 per cent of the villas were sold below this price, 50 per cent above this price.