Trend: When Buying an Apartment, the Direction Is "Smaller Is Better"

Already in 2019, the WKÖ, in cooperation with EXPLOREAL, presented a comprehensive study on the topic of "residential construction projects" in Vienna and Lower Austria.

Influenced by the Corona pandemic, this study has now been updated and adapted to the latest purchasing and construction trends. The most interesting development is the trend towards smaller projects. This is observed both in the number of residential units per project and in the residential floor areas. As a result, one- to two-room apartments are in high demand. These have increased in Vienna by 7 percent and account for approximately 60% of the residential units in an average project. Thus, in an average project in Vienna, there are now only 12 percent 4+ room apartments. [1] According to Bernd Rießland of the Association of Non-Profit Housing Associations (GBV), it is important to note that Corona has made people aware of the importance of open space, and the passing trend of small apartments must be counteracted. [2]

Geographically speaking, most construction projects in Vienna take place in the hotspot districts 10, 11, 21, 22 and 23, with a total of around 17,400 residential units set to be completed in 2022.

Source: https://www.wko.at/branchen/information-consulting/immobilien-vermoegenstreuhaender/Wohnbauprojekte_11_2021.html

In Vienna, purchasing decisions are not only influenced by the number of rooms, but also by the floor area. Buyers are currently interested in apartments with an average of around 58 square metres, meaning the average residential floor area in new construction projects has decreased by 6.2 square metres. [3]

Michael Pisecky, deputy chairman of the professional association and chairman of the Vienna branch of real estate and asset trustees, attributes this development to rising land prices and construction costs, as well as the willingness of future residents and investors to invest. The price increase with an unchanged residential floor area amounts to 10% in Vienna, resulting in an average purchase price of €399,000 for an apartment in Vienna. [4]

The new development regarding external financing with 20% equity is being watched with great interest. This should result in a easing of price levels but also a decline in purchases.

If you have further questions or are interested in real estate, please feel free to contact:

Harald Ottawa, B.A. [email protected] +436605489890

[1] https://www.wko.at/branchen/information-consulting/immobilien-vermoegenstreuhaender/Wohnbauprojekte_11_2021.html

[2] https://www.wko.at/branchen/information-consulting/immobilien-vermoegenstreuhaender/Wohnbauprojekte_11_2021.html

[3] https://www.wko.at/branchen/information-consulting/immobilien-vermoegenstreuhaender/Wohnbauprojekte_11_2021.html

[4] https://www.wko.at/branchen/information-consulting/immobilien-vermoegenstreuhaender/Wohnbauprojekte_11_2021.html