Approx. 30% of all property buyers in Vienna are non-residents. The main foreign purchasers are the citizens of Russia, Germany, the UK, immigrants from Eastern Europe and the Middle East. Also the Chinese investors are interested in commercial real estate in Vienna, according to the Knight Frank report for 2014. Foreign customers tend to buy housing in the price range €4-10 million. The demand of the Russians and the Ukrainians, who played a major role in the property market, declined due to the recent political and economic occasions, the ee24.com reports.
The demand for property in Vienna will continue to grow as the prices, that are already high (more than €4,000 per square meter) and that has risen by 80% for the past 10 years, The New York Times reports. The Austrians buy property in the main city of Austria for their own accommodation. The growth of the population of Vienna is expected to increase from 1.8 million to 2.04 million by 2034.
Market analysts point out that Vienna is difficult to speculate on real estate and rentals, as local authorities fix rents depending on the age of the building, location and infrastructure. Thus, the profitability of the property is usually not more than 3% per annum.
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