Soravia Capital GmbH

Vienna real estate market: following a stable 2014, Soravia Capital also perceives positive outlook for 2015

(DGAP-Media / 10.12.2014 / 10:52)

Vienna real estate market: following a stable 2014, Soravia Capital also
perceives positive outlook for 2015

- Vienna advances as an alternative investment location among investors

- Sustained value growth rates for residential real estate

- Population influx secures demand for properties, and consequently
prices

Munich (December 10, 2014). Capital services provider Soravia Capital GmbH
expects that Vienna's residential real estate market will continue to grow
at an above-average rate over the remaining days of this year and in 2015.
"Residential real estate prices in Vienna were already up by 8.1 percent
year-on-year across all price and quality segments in the first quarter of
2014. The subsequent three quarters have also been strong. We see no
reversal to this trend in 2015. Continuing demand for prime location
properties will even push prices per square meter further above the EUR
10,000 level," forecasts Marc K. Thiel, Managing Director of Soravia
Capital GmbH, after an appraisal of available market data.

Investments: growth and moderate prices create international interest

Forecasts indicate that 2014 will mark a record year on the Austrian real
estate market. Third-quarter investment volumes of EUR 770 million reflect
around 48 percent year-on-year growth according to CBRE Austria. Between
January and September, approximately EUR 2.1 billion were invested, with a
cumulative total of around EUR 2.9 billion of real estate investments being
forecast by the end of 2014. "Austria's real estate market has enjoyed an
exciting autumn season. Vienna is no exception in this context," comments
Thiel. Demand for real estate in the Austrian capital has continued
unabated, as investors continue to regard stock markets with a critical
eye. Foreign investors are currently becoming increasingly interested in
properties in Vienna, according to Soravia Capital GmbH. By contrast with
overpriced markets in London, Paris and many major German cities, they
believe that Vienna offers a great variety of investment opportunities at
more attractive buying prices and correspondingly better returns.

Prices: attractive price level and sustained value appreciation

Given comparatively moderate average prices for newly built real estate,
which stand at around EUR 3,873 per square meter according to the latest
2014 real estate survey published by the Austrian Chamber of Commerce,
residential properties in Vienna are sought-after investment assets -
especially compared with those in major German cities such as Munich.