Your own property in Vienna - the world capital of music

INTERVIEW WITH MARKUS HERTEN, LICENSING PARTNER AT VON POLL IMMOBILIEN WIEN.

Vienna stands for tradition, art, culture and music like no other city. Many of the most influential composers to this day chose Vienna as the place for their creative work - including Mozart, Beethoven and Haydn as the main representatives of Viennese Classicism. This musical heritage has earned Vienna the title of "World Capital of Music". In addition to its diverse cultural landscape, Vienna is also known for its history, magnificent architecture and, of course, its picturesque location directly on the Danube. Anyone interested in buying real estate in the Austrian capital is well advised by Markus Herten. As a licensed partner of VON POLL IMMOBILIEN Vienna, he has a store in the 1st district. The real estate expert explains what opportunities the Viennese real estate market offers and what international buyers should look out for.

Mr. Herten, what makes Vienna so attractive compared to other real estate markets - especially for international buyers?

MARKUS HERTEN

The city of Vienna is still reasonably priced, especially in an international context. The local real estate price level is in some cases significantly below that of other major European cities such as London, Paris or Munich. Vienna is also well below the international average when it comes to rents. The explanation for this lies in the Vienna Tenancy Act, which regulates rents for old buildings built before 1945. The rents are divided into a basic rent and a possible location surcharge. As Vienna was only slightly destroyed during the two world wars, there is a lot of existing housing and therefore also relatively cheap housing available, which in turn has an influence on the available rents. As a result, lower rents also result in attractive purchase prices, as the rental yield at least partly determines the purchase price.

Which factors have the greatest influence on property prices in Vienna?

MARKUS HERTEN

The city's annual population growth is currently between 20,000 and 23,000 people. This growth is driven in particular by immigration. As a result, Vienna has become one of the fastest growing cities in Europe in recent years. In contrast to the population influx, construction activity has almost come to a standstill. Building permits are declining and new projects are only being started sporadically due to rising interest rates and construction costs. These factors will also have a long-term impact on residential property prices.

How high is the proportion of international buyers?

MARKUS HERTEN
In the Viennese real estate market, the proportion of international buyers is currently around 20 percent, although this depends heavily on the type of property and its location. Most international inquiries come from Germany, Switzerland and Ukraine, followed by Italy, France and other EU countries.

Are there certain price or property categories that international buyers prefer?

MARKUS HERTEN

The international clientele is mainly active in the mid to high-price segment. Premium properties in districts such as the Innere Stadt, Hietzing and Döbling are particularly popular.

Principal residences in high-priced locations are currently the most sought-after, as Vienna is also known for its excellent healthcare and education system. Vienna also regularly wins the title of the world's most liveable city. Investors are currently only selective in the market, as yields tend to be less attractive in international comparison due to the rental laws.

In Germany, energy-efficient buildings and environmentally conscious construction are a major topic. What is the situation in Austria?

MARKUS HERTEN

Energy-efficient construction is a major topic, especially in new builds, and demand is also extremely high. When renovating old buildings, however, the new requirements are much more difficult to implement due to the structured façades and the widespread protection zones. The City of Vienna is trying to remedy this by expanding the district heating supply, for example.

You just mentioned new construction - are there currently any attractive new construction projects in Vienna?

MARKUS HERTEN

There are indeed some exciting urban development projects, such as the 'Village im Dritten' district, which is located in the 3rd district on Aspanggründe. With a focus on urban living and green oases, this project is aimed at city lovers who don't want to miss out on a connection between nature and the city. In addition, several new landmarks are currently being completed, such as the Danube Flats - a stylish high-rise building with a view of the city and in close proximity to the water - which are aimed at the discerning end user.

Are there any differences in the purchasing process for international buyers compared to domestic buyers?

MARKUS HERTEN

Customers from other EU countries are treated the same as domestic property buyers - there are no further restrictions here. Buyers who do not come from the European Union require the approval of the Foreigners' Land Transfer Commission. Among other things, the commission checks whether a buyer would like to move the center of their life to Vienna or has already done so and how well they are integrated, for example through their job or children. Another criterion is whether they already own real estate in Austria.

In your experience, what are the most common mistakes that prospective international buyers make when purchasing real estate?

MARKUS HERTEN

We often find that prospective buyers have too vague an idea of the area in which they would like to live. Vienna has a total of 23 districts with even more small neighborhoods and micro-locations. So there is the right living environment for everyone and different influencing factors such as schools, public transport connections or access to local recreational areas.

How do you support international customers in their property search? And do you offer additional services specifically for prospective international buyers?

MARKUS HERTEN

The first step at VON POLL IMMOBILIEN Vienna is to work with our clients to determine the right micro-location for them. After all, the new living environment should be perfectly tailored to their wishes and needs. Are clients looking for a villa location with international schools or would they prefer the French Quarter? How important is access to nature or proximity to the subway or work? In addition, we offer access to tax advisors and lawyers through our excellent network of experts, who provide comprehensive services in advising and processing transactions.

Mr. Herten, thank you very much for the interesting conversation.

For more information about Markus Herten and his team at VON POLL IMMOBILIEN Vienna - 1st district, as well as the current range of properties on site, contact details and much more, please visit https://www.von-poll.com/de/immobilienmakler/wien