Why it is profitable to buy property in Vienna: main factors
Austria is a developed European country, whose economic and political stability makes it popular among investors. In addition, the state attracts thousands of tourists, who come to see the amazing architecture of ancient cities and enjoy the mountain scenery. In terms of investment, real estate in Vienna is interesting.
The capital of Austria does not leave the list of the world’s most livable cities. The infrastructure is perfectly developed here, and the real estate market is interesting for various reasons. First of all, Vienna is an ideal place for organizing business meetings and international corporations. Historically, it is considered a diplomatic center, and there is a large number of representative offices of large companies, headquarters of international organizations. For 9 years, the Austrian capital has been a leader in terms of living comfort. It is conveniently located, and its developed transportation system allows getting to the right place quickly from almost any corner of Europe and the world. Such advantages make Vienna’s real estate market popular and profitable from the point of view of investment. In the city the flow of tourists and people who come on business or conferences does not decrease almost all year round.
Last year, there were 22.3 thousand transactions for a total of 9.9 billion euros. For comparison, in the previous period signed contracts were 6% less and cheaper they were 13.4%.
Stable economic indicators contribute to the development of the real estate market in Vienna. Despite the fact that the city’s population is growing, the unemployment rate is regularly decreasing. Therefore, foreign investors are buying more and more objects in the Austrian capital.
Vienna’s population growth is 20 thousand people a year, and in a short time will reach 2 million. The demand for housing is increasing. According to statistics, 10 thousand new or renovated objects are needed annually.
Elite, but sparsely populated area of Vienna is the Inner City. A square meter of housing here costs 11-31 thousand euros, but the yield is low – from 1.75 to 2.3%.
More benefits can be obtained by buying an apartment for 5000-5400 euros per square meter. In this case the yield will be from 3.4% to 4% for a large square and 5% for a compact home.
The cost of apartment rent is also growing. For the period of 8 years it has increased by 43%. The yield of dwelling is higher in the districts far away from the center.
Investing in the real estate of Vienna is a profitable option due to the development of the country’s economy. According to forecasts, by the end of the year its indicators will grow by 2.8%, which is a good result against the background of the global economic slowdown.