€5,800 per m² for Commercial Tenement Building
After a dry spell last year, the Vienna real estate market is seeing an increase in transactions, with prices reminiscent of the pre-crisis era. This is confirmed by Grossmann + Kaswurm Immobilien with the sale of a formerly commercial tenement building in an unsanitary condition outside the residential zone on Wiedner Hauptstraße for a price of €5,800 per m².
According to Benedikt Grossmann, Managing Director of Grossmann + Kaswurm Immobilien, a unique selling proposition is currently crucial for successful sales. An aparthotel concept was developed for the former office building in collaboration with ‘Dwell Bell‘, a specialist in short-term rentals. The developer’s strategy is to implement this concept in six other Viennese properties ranging in size from 300 m² to 4,000 m². “It will continue to be important to act flexibly in property development,” says Grossmann. In the development of tenement buildings, the principle of quality over quantity is paramount.
Grossmann also sees great potential in health centers that offer a wide range of medical specialties. “Against the backdrop that the federal government wants to triple the number of primary care centers, existing properties such as tenement buildings represent promising potential for group practices,” he further explains. “The market is thus definitely showing again that existing properties have a higher value than valuation experts or banks currently assess. Nevertheless, real bargains in existing properties are just as rare as before the crisis.” Managing Director Peter Kaswurm concludes: “Due to the economic development, we will certainly increase prices for individual properties again in the second and third quarters.”
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