24You

The new online banking of Bank Austria.

BusinessNet

The online banking for companies.

olbImgAlt To the MegaCard GoGreen-youth account
MegaCard GoGreen-youth account. The free MegaCard GoGreen-youth account for everyone from 10 to 20 years, and receive a welcome gift. To the MegaCard GoGreen-youth account
02.08.2011

Bank Austria finances this year's largest portfolio of apartment houses in Vienna

  • Bank Austria generates important stimulus for Vienna's real estate market and finances 53 apartment houses in optimal locations with EUR 110 million
  • Apartment houses remain popular investment objects: Low supply stabilises prices, location is a decisive factor for yields

Bank Austria's Real Estate department has concluded one of the largest real estate transactions of the year: the financing of a portfolio of rental apartment houses belonging to CITIM Holding GmbH that encompasses 53 buildings with roughly 100,000 square metres of useable area for a total of EUR 110 million. These apartment houses are spread across nearly all of Vienna's districts, with a focus on the third district. Over 75 per cent of the useable area is made up of flats, followed by commercial and office space.

According to Reinhard Madlencnik, the head of Real Estate at Bank Austria, "This financing is an important stimulus for Vienna's real estate market and shows that apartment houses remain an attractive long-term investment. Overall, we are seeing growing interest among investors for commercial properties in Vienna. Our increased financing activities since 2010 confirm our long-term confidence in our home market."

Even during the economic crisis, Vienna's apartment house market saw very positive development. The average price for apartment houses has risen by around 140 per cent over the last 15 years. Even with the economic recovery beginning, demand for "Gründerzeit" buildings has remained high. Although in 2010 the transaction volume for apartment houses decreased by roughly 12 per cent compared to the previous year, it hit a high level of EUR 969 million. In particular, the prices for apartment houses in good locations continue to rise. Depending on the location, it is possible to achieve yields ranging from 1.7 to 7.2 per cent. Due to the low supply, Bank Austria's real estate analysts do not expect prices to fall in the near future.

Enquiries: Bank Austria Press Office Austria
 Julia Wegenstein, tel. +43 (0) 50505 - 52854
 E-mail: julia.wegenstein@unicreditgroup.at

 back to the summary