426 Investment Properties for sale in Vienna – Page 14

• Origin of the term: The word "Zinshaus" comes from historical usage – Zins means rent. A rental building is therefore a house that generates continuous income for the owner through letting.
• Historic building stock: There are still over 13,000 rental buildings in Vienna, mostly magnificent old buildings from the 19th century. They shape entire neighborhoods and are a significant part of the city’s architectural heritage.
• Conversion to apartments: Since 2009 the total number of classic rental buildings in Vienna has fallen by about 12%. The reason: many owners have parceled their buildings into individual condominiums and sold the separate apartments. This reduces the number of whole rental buildings, but increases the supply of historic apartments.
• Price range per square meter: Purchase prices vary widely depending on location: in simple outer districts they start at around €1,500 per m², while in top locations more than €10,000 per m² can be paid. This range shows how decisive location is for the value of a rental building.

The Vienna rental-building market is characterized by numerous historic Gründerzeit buildings and classic multi-family houses. These rental buildings – often splendid old buildings with stucco facades – are an important part of Vienna’s urban landscape.

As investment properties they have always been in high demand. There are still over 13,000 rental buildings in Vienna, mostly old buildings from the 19th century. A rental building usually contains several rented apartments under one roof, which are sold as a whole – overall historic old buildings dominate the market.

In recent years the rental-building market has changed somewhat: many owners have parceled rental buildings into separate units, i.e. divided them into individual condominiums and sold them as owner-occupied apartments instead of selling the entire building. As a result, the stock of classic rental buildings has declined slightly.

Nevertheless, investor interest in Vienna rental buildings remains high, because the population is steadily growing and high-quality housing is scarce. Rental buildings as investment objects are still regarded as crisis-resistant tangible assets – especially in a metropolis like Vienna with a high quality of life and steady housing demand.

The condition and features of the property play a major role when buying a rental building. Many Viennese rental buildings are venerable structures with historic charm, but the structural condition can vary greatly. Prospective buyers should check whether the building has already been renovated or whether major investments will be required in the near future.

A comprehensive renovation – for example of the roof, facade or utility lines – can raise the purchase price but offers the advantage of lower maintenance costs in the coming years. An unrenovated property with renovation needs is cheaper to buy but requires the appropriate budget and effort for upgrades.

The building’s features include, for example, whether an elevator is present and how modern the building services (heating, electrical, sanitary) and the apartments are. In general, a contemporary standard in the units increases attractiveness for tenants and thus the value for the buyer.

The layout of the building – number of rooms per apartment, apartment sizes and total usable area (living area) – is also important. Rental buildings with well-laid-out 2- to 3-room apartments are usually easier to fully rent out and generate reliable rental income. For especially protected historic buildings, regulatory requirements such as heritage protection may need to be observed.

The location of a property is one of the most important value factors – this also applies to rental buildings in Vienna. Each property unfolds its value in the context of the district and the surroundings. Rental buildings are found in many parts of Vienna, but especially the inner districts and classic Gründerzeit neighborhoods have a high concentration.

Sought-after residential areas for rental-building investments are usually within or near the Gürtel: districts such as Mariahilf (6th district), Neubau (7th district), Josefstadt (8th district) or Alsergrund (9th district) are known for attractive old rental buildings with corresponding demand.

These central locations offer excellent infrastructure, good public transport connections and high attractiveness for tenants – prices are correspondingly high.

Rental buildings also shape the cityscape in outer districts such as Favoriten (10th district), Rudolfsheim-Fünfhaus (15th district) or Ottakring (16th district). In such locations the purchase prices per square meter are often lower, while initial rental yields can be higher.

A rental building in Vienna is a way to invest stably in residential real estate. The yield is usually 2–4% – lower in inner-city categories due to high prices, somewhat higher in peripheral districts because of lower entry prices. Thanks to inward migration, the search for rental apartments remains large, which creates good letting prospects.

Many historic rental buildings are subject to the MRG, which limits rents. However, apartments that become vacant can often be re-rented at market prices – a valuable tip for increasing returns.

Rental buildings are considered crisis-resistant and value-stable. Buyers are often private investors, foundations or individual investors who focus on long-term security. Demand remains high, especially in good locations in the heart of Vienna.