On 7 March at the library of the Architekturzentrum Wien the BUWOG Group and EHL Immobilien’s press conference on the anniversary edition of the First Vienna Residential Market Report took place, an invitation numerous journalists accepted.
Daniel Riedl (CEO of the BUWOG Group), Andreas Holler (head of development in Austria at the BUWOG Group), Michael Ehlmeier (managing partner at EHL) and Sandra Bauernfeind (managing director of EHL Immobilien Management) informed the attendees of the press conference about the latest developments on the Vienna residential market.
The First Vienna Residential Market Report appears in its fifth edition with the 2017 issue and, due to the enormous international demand, is also available in German and English again this year. The report highlights the ownership structure, the demographic development of Vienna and Viennese households, and it provides an overview of all 23 districts of Vienna with information on residents, income as well as sale and rental prices (not offer prices, but the prices actually valid on conclusion of the agreement). Development potential, exceptional locations and pathbreaking projects in the individual districts were likewise presented. Sinus Milieus®1 were included in the report this year for the first time. As a result, it was possible to present the average milieus (defined by educational level and basic orientation) that are dominant in the districts of Vienna
Shortfall in supply persists
The report originated in close cooperation between leading private residential developer the BUWOG Group and leading residential service provider EHL Immobilien, bringing together a concentration of expertise.
The primary point of the real estate experts concerning the status quo of the Vienna residential property market: It is essential to eliminate the continually – albeit more slowly – growing shortfall in supply as fast as possible. There are suitable government approaches for acquiring more land and therefore developing more residential space. It will only be possible to accommodate the surplus in demand if the relevant measures are put into practice quickly. If this does not occur, the rents and property prices in every district will continue to increase or remain at a consistently high level, as has been the case in past years.
Statistics show that in 2023 Vienna will cross the two million-resident threshold. In combination with ongoing trends such as the increase in single households, there is enormous pressure on the residential market. Measures to cover the residential demand and to stimulate residential construction include site mobilisation, faster zoning and approval procedures as well as the motivation of private owners to rent vacant apartments for a limited period. The opening of the not-for-profit sector to investors would provide an enormous boost to social housing development and, consequently, ease the burden on the residential market.
Would you like more details on the Vienna residential market?
The First Vienna Residential Market Report 2017 is available as a download and for reading online under this link.
All pictures: Fotocredit Stephan Huger
1 Sinus-Milieus® group together people and consumer segments with similar views and ways of life, consumption and work, including basic orientation and values (outlook on life, family, politics, religion, etc.), lifestyle, taste, management style, communication structures, residential and employment environments. Surveyed by INTEGRAL Markt- und Meinungsforschungsges.m.b.H