BUWOG and EHL has presented the “First Vienna Residential Market Report” for the fourth time. Numerous journalists responded to the invitation of both companies to Hotel Triest for the press conference, which took place on 15.2.2016.
At this year’s press conference the status quo of the Vienna residential property market was reported on by Daniel Riedl (CEO) and Andreas Holler (Managing Director Property Development Austria) on the part of BUWOG and by Michael Ehlmaier (Managing Partner EHL) and Sandra Bauernfeind (Managing Director EHL Real Estate Management) on the part of EHL.
Leading private residential developer BUWOG Group and leading real estate service provider EHL gathered for the fourth time for a press event to present the new edition of the “First Vienna Residential Market Report” to the public.
The main message: there is an enormous shortage of supply on the privately financed and subsidised Vienna residential market. As in the last few years – the production of flats is still not keeping pace with demand.
The City of Vienna’s vigorous growth in population, which was stronger than projected, the refugee crisis in Europe and the trend toward single households are putting pressure on the Vienna residential market, in which new construction is not presently keeping pace. Vienna grew in 2015 by over 43,000 persons; this is equivalent to the size of Wiener Neustadt.
The result: rising rents and property prices in nearly every district, even if they are no longer as drastic compared to previous years.
For freehold flats in 2016 an increase in price of 2 percent is expected in average locations and 3 percent in good to very good locations. Prices above the EUR10,000 per square metre level are stagnating solely in the absolute luxury segment. In the rental segment BUWOG Group and EHL anticipate growth of between 2 and 3 percent, depending on the location and the property’s fixtures and fittings.
How to deal with it? Faster and simpler approval procedures were addressed at the press conference as a reasonable idea, as was the call for a review of construction standards in subsidised housing. The issue of “affordable housing” was also addressed – a challenge which BUWOG Group has confronted, for instance, with projects such as the Southgate residential complex in Altmannsdorf.
The last editions have shown that due to the enormous international attention focused on the Vienna residential market there are especially frequent requests for the English version of the report.
The 2016 edition of the “First Vienna Residential Market Report” is now available in English.
Photos: BUWOG/Stephan Huger