The "second-tier" cities, such as Essen, Dortmund and Duisburg, demonstrate the highest profitability from renting real estate. But for the capital and other well-known megacities, such as Munich and Cologne, this indicator is only about 3%.
Investments in residential property in Austria provide an ROI of 2.5–5% for residential real estate, and 2–6% for commercial properties. As in the case of Germany, there is a significant demand for rental real estate in Austria. If about 43% of the country's residents do not have their own real estate, then in Vienna this figure reaches 78%. The average rental in the country has increased by a massive 53% since 2006.
The efficiency of capital investment is determined not only by rental income. The cost of residential property increases every year by at least 2–3%, and sometimes by 10%, while the return on investment is 6–8% per annum. Local real estate has high liquidity and, if necessary, you can easily find the appropriate buyer when the time comes to sell.
Following on from all of the above, we can conclude that Austria has a number of significant advantages over Germany:
- High profitability of both residential and commercial real estate.
- High liquidity of housing.
- Moderate influx of refugees, which reduces the pressure on the rental property market.
- High tourism potential – there are many cultural and tourist destinations in Austria.