VIENNA
Oliver Banks
Alex Koch de Gooreynd
Articles covered
Known for its majestic architecture, café scene and eponymous waltz and music made popular by Johan Strauss, Vienna is a city of culture and timeless elegance. It also ranks highly on a global scale in terms of social security, safety, access to top quality health care and education, infrastructural conditions, recreational opportunities and a healthy environment.
Vienna’s cultural offering is unique and on an immense scale: almost 100 theatres and opera house, over 400 balls held every winter attended by dance-lovers from all over the world, and over 200 museums and galleries. Yet, the city is also considered one of the most important international business locations, home to the headquarters of organisations such as OPEC, UN, IAEO and UNIDO. As the location of more than 40 intergovernmental organisations, with around 3,800 diplomats and over 6,000 international civil servants, Vienna is also a hub of international diplomacy.
Vienna has consistently taken the top place in various smart city rankings, securing its status as one of the most innovative cities in the world. As a successful smart city, Vienna is well prepared for the challenges of the future while implementing development concepts that aim to make a city more efficient, technologically advanced, greener and socially inclusive. In order to continue this success in the future, Vienna has founded the Smart City Vienna Agency.
Above all, it’s the friendly atmosphere of Vienna that makes it such an attractive city to live and work in. It’s easy to navigate with a great transport network and a relaxing way of life that encourages a better work life balance. With charming cafés offering delicious cakes or apple strudel and typical wine taverns on every corner, it’s the perfect place to socialise at your own pace while watching the world go by.
"Vienna also ranks highly on a global scale in terms of social security, safety, access to top quality health care and education"
What can you get for your money in Vienna?
Knight Frank has listed all properties within the past 12 months.
Neighbourhoods to watch
Second District – Karmelitermarkt
The second district in the area of Karmelitermarkt is considered trendier than ever. Over half of the second district is covered in green spaces, and is particularly family and child-friendly, home to a total of 124 playgrounds in total. There’s also plenty of bistros, eateries and art galleries, often set in interesting pre-war buildings.
Favoriten
The 10th district, called Favoriten, merges with the third district at the main railway station, with some 200,000 people choosing to call Favoriten home. That makes it the most populated district in the city and the fourth-largest ‘town’ in Austria. This once working-class district is gradually flourishing but still remains affordable.
What’s driving demand
Local education
23/13
23 Universities / 13 international Schools Free education in all state schools Free education in all state universities Free after-school tutoring for children who need help with learning and homework
Reason for buying?
Professions
Business services
Public services
Price per sq m:
Core: €6,215 Prime: €20,813 Super Prime: €25,200
Who's buying?
92% Local 8% International
Did you know
99
A hub for international HQs, Vienna is home to nearly 100 international organisations including the UN, OPEC and OSCE
Reasons to buy
Vienna is an economically stable location in which real estate prices are steadily rising, despite the effects of the pandemic. It is a city that offers comparatively good value for money with new dwellings relatively low priced. With almost four fifths of households living in rental apartments, Vienna is the tenant city of Europe meaning there is constant demand for good quality long and short term lets. The trend towards living in skyscrapers also continues to grow thanks to the evolution of new residential developments within the city.
The real estate industry in Austria is an important part of the economy, generating 9.8% of the country’s total economic output. Around 20,000 people work in real estate companies and the planning and realisation of projects secures tens of thousands of additional jobs every year. As part of its smart city status, Vienna is involved in a lot of sustainable initiatives, but perhaps most impressive is the city’s wastewater canal. Vienna's largest sewage treatment plant has been rebuilt to now produce green electricity and heat, reducing CO2 emissions by around 40,000 tonnes per year, thus transforming it from one of the city's biggest energy guzzlers to the second largest energy producer.
Vienna market in numbers
Whether it is for lifestyle or investment purposes, there can be extra costs that need to be considered in addition to the purchase of the property itself. While the cost of the property is by far the most significant expense, additional costs you may need to cover can include local fees, taxes, running costs and possible charges that will need to be factored in.
Purchasing costs
7.2%
The total percentage of purchasers costs involved in buying a property in Vienna, which includes:
Additional information
Costs include: Value Added Tax (VAT) is payable for newly-built properties. If purchasing new build property in buyers name, 20% VAT applied. This can be claimed back if the property is rented out.
Definitions:
Rental yields: Based on gross income. Average rental: Based on prices per month. Prime market: The most desirable and most expensive property in a given location, defined as the top 5% of each market by value. Super prime market: The most desirable and most expensive property in a given location, defined as homes priced at more than US $10 million.
Investment breakdown
Core market
Rental yield: 2.6% Expected running costs €2.5 sq m Average rental: €13.65 sq m
Prime market
Rental yield: 2.0% Expected running costs: €3 sq m Average rental: €28 sq m
Super prime market
Rental yield: 1.8% Expected running costs: €4 sq m Average rental: €35 sq m
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Sources: 1. OTTO Immobilien, 2. IMMOUNITED, 3. Knight Frank. This city guide is provided for general information only. It is not definitive, nor is it intended to amount to advice on which you should solely rely upon. As far as applicable laws allow, we do not accept responsibility for errors, inaccuracies or omissions, nor for loss or damage that may result directly or indirectly from reliance on or use of its contents.