Homes in Vienna are normally purchased by residents and when they’ve bought a new house, the Viennese hold on to it for as long as they can. The supply of houses in the city is also not that plenty. For this reason, the Austrian capital is not considered an investors’ market owing to the lack of ultra-prime properties.
But local demand remains strong and real estate agents expect a steady, although slower, growth.
High end properties or those considered as ultra prime are not readily available in Vienna unlike in London or New York. Investors looking for luxurious homes may not always find what they’re looking for in the Austrian capital. In terms of residential property, luxury in Vienna could mean a great location but it does not necessarily come with amazing views, more rooms or amenities.
Areas in Vienna where luxury homes including apartments can be found include the Golden Quarter in District Seven and Tuchlauben in District One. Add to this is the penthouse in the building where the new Park Hyatt Hotel is housed on Am Hof square as well as the area around the Naschmarkt in District Four.
A 2014 report by Knight Frank noted that 30 percent of property buyers in Vienna are foreigners. These include Russians, Eastern Europeans, Germans, British and those from the Middle East.
The same report predicted a 26 percent increase in the city’s ultra high net worth residents or people with more than 24 million Euros asset by 2023. This is seen to be part of the expansion of Vienna’s luxury property sector.
Vienna’s population is currently at 1.8 million and continues to increase. It is estimated to reach 2.04 million by the year 2034.