Real Estate Market in Austria: Why Location Isn't the Only Thing That Matters

Several important factors determine the value of a property. "The condition is a very essential point in the evaluation - alongside location, location, location," emphasized real estate expert Max Wohlgemuth at a press conference on Wednesday. The condition of a property also directly affects the rental price and the speed of renting. "Regular maintenance increases the value, at least it maintains the value," said Oliver Attensam, head of the property management company Attensam.

Besides "Location, Location, Location," Condition is Also Crucial in Property Evaluation

"The real estate market is generally under pressure," noted Wohlgemuth, managing partner of Spiegelfeld and Wohlgemuth Property Evaluations. There are only initial small signs of relaxation. "In the evaluation, what is essential - independent of the market - is how well the property is maintained," said the industry expert. Otherwise, there are "deductions for deferred maintenance needs." A dry basement, a beautiful facade, and a tight roof contribute positively to the evaluation.

According to him, the three most important key data when buying are location, condition, and potential rental income. Attensam similarly ranked with "location, infrastructure, and building substance." There is a lot of supply on the market, so a well-maintained property is at an advantage, said Wohlgemuth. Buyers know, "there are no major expenses coming my way."

Heating Plays an Increasingly Important Role in Value Retention and Enhancement

However, the topics of energy efficiency and heating technology are becoming increasingly relevant. According to an online survey commissioned by Attensam among 500 property owners, well-maintained building technology plays "a very important role" for 42 percent, and "a rather important role" for another 54 percent. The greatest influence on the preservation or increase in value of a property is the heating system for around 80 percent, followed by electrical installations (almost 55 percent) and renewable energies (around 54 percent). The survey was conducted by Marketagent.

"Someone Always Says No": Switching to Modern Heating Sometimes Difficult

The intended phase-out of oil and gas and thus modern heating technology is increasingly coming into focus, especially among professional investors. "A contemporary heating system is value-relevant," Wohlgemuth generally noted. A heat pump or district heating is "an advantage," but a gas heating system is currently "not a discount" on the price, according to the real estate appraiser with regard to tenement houses. The switch to a modern heating system is not always easy - all apartment owners must agree and "someone always says 'No'." Here, Wohlgemuth sees "a bit of a need for action from the legal side."

Increased Demand for Energy-Efficient Heating - Especially Among Fund Investors

The presence of a heating system is already "the standard" in old buildings. He would "rather make an add-on in the valuation" if a future-proof heating system is available. In his opinion, a condensing boiler does not yet count as such - it would only be "a little bit better" than a conventional boiler. An energy-efficient heating system that meets environmental goals in the long term results in a "higher value because the demand is higher." In commercial properties, the heating system always plays "a major role," Wohlgemuth added. Fund investors would also only buy properties that are up to date in this regard.

(APA/Red)

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