Residential real estate is perfectly suited for investors looking for a property with a highly stable value, as well as long-term and low-risk alternatives to investments in the financial markets. Therefore 60% of all transactions are conducted by high net worth private investors, foundations and family offices. Depending on the composition of tenants, the condition of the property, and the location, investors can expect an annual return on investment of 3-5%. In central locations of Vienna yields are at a lower level, and higher in districts on the outskirts. Those who have the funds to invest but do not want to take over the administration of the building are well advised to task a professional property manager with the handling. The costs of these services are part of the operations costs.
Based on your requirements regarding budget, location and investment objectives, we will gladly review available residential real estate in terms of quality, legal titles and established rights as well as the correct price level, and offer you comprehensive consulting and bespoke property investment guidance. Please ask for our portfolio of residential properties in Vienna and the capitals of Austria´s provinces.
Location, Location, Location.
The most important variables determining the value of a residential property are its location, size, building structure, the condition of the property as well as the tenancy rate and the structure of the tenants. All these factors define the level of yield the property can generate. Further interesting aspects are vacant space, expansion options and the maturity of the rental agreements.
Old or New?
When we talk about residential real estate in Austria, most people think of apartment buildings dating from the Gründerzeit in the second half of the 19th century. However, technically the term includes all newly built residential buildings which were raised to let apartments and generate a return for an investor. Newer buildings (after 1953) are often less visually attractive but offer higher yields due to lower maintenance and a restricted application of the Austrian tenancy law (MRG) i.e. no so called Friedenszins rents (apartments with rent substantially below market rents). Older residential estates by contrast offer a higher long term potential for an increase in expected returns due to a change in the tenant structure and possible expansions.