Soravia Capital GmbH
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. Relatively low buying prices offer attractive rental yields averaging around 3 percent. At the same time, rising demand for residential real estate is continuing to drive Vienna's property prices up, ensuring sustained value appreciation for super-secure bricks-and-mortar assets. Average per square meter prices for newly-built owner-occupier apartments have increased by 45 percent during the past five years alone. "Rising prices for owner-occupied apartments primarily reflect the fact that living space is in ever shorter supply in Vienna," notes Thiel. The population in Vienna is growing by 20,000 to 25,000 inhabitants annually. Between 8,500 and 10,000 new residential units need to be created every year in order to keep pace with this growth. According to Soravia Capital, however, new residential construction is stagnating, the required level of new buildings has not been reached over the past years, and demand is rising constantly. This constellation already fed through to considerable price increases for both new constructions and existing owner-occupier apartments in 2013. Against this backdrop, it can be assumed that Vienna's residential real estate market will continue on a positive trend during 2015. About Soravia: The Soravia Group, with over 500 completed projects and a project volume of more than EUR3.3 billion, is one of Austria's leading property developers. The family-owned business was established 25 years ago and has plans to develop several major projects in Vienna in the coming years with a total of more than 160,000 m2 in floor space, including one of the tallest residential towers in the German speaking market at over 150 metres high. In addition to its core property development business, the Soravia Group also holds ownership interests in numerous companies, from the world-famous Dorotheum auction house to outdoor advertising specialists Megaboard as well as ifa AG, an Austrian real estate investment consulting company. Since 2013, Soravia has also had an ownership stake in the Ruby hotel chain (www.ruby-hotels.com). With Soravia Capital GmbH, the company is offering institutional and semi-institutional investors in Germany an opportunity to serve as joint venture partners and co-investors in the planned development projects. Press contact: scrivo PublicRelations GbR Kai Oppel Elvirastraße 4, Rgb. D-80636 München phone: +49 89 45 23 508 11 fax: +49 89 45 23 508 20 e-mail: Kai.Oppel@scrivo-pr.de internet: www.scrivo-pr.de End of Media Release --------------------------------------------------------------------- Issuer: Soravia Capital GmbH Key word(s): Real estate 10.12.2014 Dissemination of a Press Release, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 304157 10.12.2014
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