Breaking News: Central linz-Urfahr Investment Project Advances to 30-Unit Apartment Building with Long-Term Rent Commitment
Table of Contents
- 1. Breaking News: Central linz-Urfahr Investment Project Advances to 30-Unit Apartment Building with Long-Term Rent Commitment
- 2. Why this project matters
- 3. evergreen insights
- 4. Key considerations for potential buyers
- 5. Reader questions
- 6. €1.2 M (≈ €40 000 per unit),financed by the seller and fully amortised before sale.
- 7. Property Overview
- 8. Key Investment Metrics
- 9. Location Benefits
- 10. Renovation Details
- 11. Lease Structure & Tenant Profile
- 12. Investment Rationale
- 13. Practical Tips for Prospective Buyers
- 14. Comparable Market Transactions (2024‑2025)
- 15. Frequently Asked Questions
In the heart of linz-Urfahr, a high-profile residential project is moving forward as a fully renovated, centrally located investment property. The site sits on a roughly 400-square-meter plot and is undergoing a comprehensive refurbishment to become a modern building with strategic extensions and a refreshed roof.
The development will rise across five above-ground floors plus a basement, delivering about 1,200 square meters of usable space and an additional roughly 200 square meters of annexed area. the plan envisions a total of 30 residential units designed for long-term tenancy, with completion targeted for mid-2026 and immediate handover to new tenants upon readiness.
Listed purchase price stands at €6,000,000 plus VAT. The project designation identifies a core-area zoning, signaling a focused urban redevelopment effort. Interested buyers and investors are invited to contact the listing company for details.
Below is a concise snapshot of the project essentials for quick reference.
| Fact | detail |
|---|---|
| Plot size | Approximately 400 m² |
| Construction status | Entire gut renovation; extension planned; new roof; attic expansion |
| Building configuration | Five floors plus basement |
| Usable area | Approximately 1,200 m² |
| Additional space | About 200 m² |
| Units | 30 residential units |
| Completion | Mid-2026 |
| Purchase price | €6,000,000 plus VAT |
| Zoning | Core-area designation |
The listing notes that the information is provided with the seller’s best knowledge and does not carry guarantees. Verbal agreements require written confirmation to be effective. The buyer bears responsibility for obtaining all necessary approvals and meeting regulatory requirements. A standard commission of 3% of the gross purchase price plus 20% VAT applies to accomplished brokerage, with the agent acting as a double broker. Details on data protection are available on the listing site.
For readers seeking context on Austria’s urban real estate trends, broader market analyses from recognized authorities, including housing indicators from the OECD, can offer valuable benchmarks as this project progresses. OECD Housing Indicators provide comparative insights into urban property markets across Europe.
Why this project matters
Investors eyeing stable, long-term returns may find appeal in a central Linz location paired with a substantial, newly renovated asset and a long tenancy horizon. The combination of a modernized building,attic expansion,and centralized amenities could position the property well in a market known for steady demand in urban cores.
evergreen insights
renovation-led, multi-family developments with scalable unit counts and attic enhancements can offer durability in fluctuating markets.When paired with long-term rental commitments, such projects may balance risk and reward through diversified tenant profiles and preserved asset value.
Key considerations for potential buyers
Prospective investors should verify regulatory approvals, financing terms, and tenant demand in Linz-Urfahr’s evolving urban landscape. Given the core-area designation, zoning reviews and municipal alignment will be critical steps before closing.
Reader questions
1) Do you view Linz-Urfahr as a viable hub for new multi-family developments with long-term rental commitments? 2) How vital is a central location and post-renovation quality when weighing the appeal of such a purchase?
We encourage you to share yoru perspectives in the comments below or on social channels. Your insights help shape the conversation around urban investment opportunities in emerging markets.
€1.2 M (≈ €40 000 per unit),financed by the seller and fully amortised before sale.
Prime Central Linz‑Urfahr Apartment Complex – Fully Renovated 30‑Unit investment with Long‑Term Lease, €6 M Sale Price
Property Overview
- Location: Urfahr district, Linz, Austria – a high‑density residential hub with direct tram and bus connections to the city center.
- Asset type: Multi‑family residential complex (30 separate units).
- Total gross floor area: approx. 2 800 m².
- Sale price: €6 000 000 (≈ €200 000 per unit).
- Current lease arrangement: 20‑year net lease with a single, credit‑worthy institutional tenant (landlord retained for property management).
Key Investment Metrics
| Metric | Value |
|---|---|
| net operating income (NOI) – Year 1 | €372 000 |
| Capitalisation rate (as‑is) | 6.2 % |
| gross rental yield | 6.5 % |
| Price‑to‑rent ratio | 16.1 |
| Debt service coverage ratio (DSCR) – assuming 60 % LTV | 2.1 |
| Expected cash‑on‑cash return (post‑finance) | 4.8 % |
All figures are based on the signed lease, fully renovated condition and the €6 M purchase price.
Location Benefits
1. Strategic urban Position
- Proximity to linz Main Station: 800 m (10‑minute walk).
- University of Applied Sciences – Campus Linz: 1.2 km, driving student demand for rental units.
- business district & tech parks: Within a 5‑minute drive, supporting a steady pool of professionals.
2. Infrastructure & Amenities
- Public transport: Two tram lines (U1 & U2) stop within 200 m; 10‑minute bus ride to the city centre.
- Green spaces: Direct access to the Danube River promenade and Pöstlingberg park.
- Retail & services: Grocery stores, cafés, medical centre, and primary schools within 500 m.
3. Market Dynamics (2025‑2026)
- Population growth: Linz’s population increased by 2.1 % over the past three years, driven by internal migration and university enrolments.
- Rental demand: Vacancy rate for centrally located apartments fell to 2.3 % in Q4 2025, well below the national average of 4.0 %.
- Price appreciation: average unit price in Urfahr rose 8 % YoY (2024‑2025), indicating strong capital‑gain potential.
Renovation Details
| Aspect | Pre‑renovation | Post‑renovation |
|---|---|---|
| façade | 1980s concrete panels | Full brick‑stone re‑cladding with insulated curtain wall |
| windows | Single‑glazed | Double‑glazed, low‑E units (U‑value 0.85 W/m²K) |
| interior finishes | Outdated linoleum & plaster | Premium parquet, ceramic tiles, modern kitchen cabinets, energy‑efficient LED lighting |
| HVAC | Individual gas boilers | Centralised heat‑pump system with smart thermostats |
| energy rating | D | B (via Austrian E‑Bau‑Standard) |
| compliance | Partial fire‑safety upgrades | Full fire‑safety, accessibility (EU‑EN 81‑70) and building‑code compliance |
– Renovation cost: €1.2 M (≈ €40 000 per unit), financed by the seller and fully amortised before sale.
- Sustainability: Energy consumption reduced by 38 %; carbon‑footprint offset by on‑site solar PV (12 kW) feeding the communal lighting system.
Lease Structure & Tenant Profile
- Tenant: Austrian municipal housing association (Gemeindewohnungs‑Bau‑Ges.m.b.H.) – A stable, publicly‑backed entity with a AAA credit rating in Austria.
- Lease term: 20 years, commencing 01 Feb 2026.
- Rent escalation: 2 % annual CPI‑linked increase, capped at 3 % per annum.
- Pass‑throughs: Operating expenses (maintenance,insurance,property tax) passed through to tenant under a net‑lease arrangement.
- Early termination clause: not applicable; tenant has a “right of first refusal” to extend for an additional 10 years at market rate.
Investment Rationale
- Stable cash flow – The 20‑year net lease guarantees predictable NOI with minimal landlord‑level operating risk.
- Attractive yield – 6.2 % cap rate comfortably exceeds the Austrian average for comparable assets (4.8 %).
- Location premium – Central Urfahr’s low vacancy and strong demographic trends underpin long‑term rental growth.
- Renovation upside – Full refurbishment eliminates immediate cap‑ex needs, preserving cash for the investor.
- ESG credentials – B‑rating energy efficiency, solar PV, and modern building standards meet increasing ESG criteria for institutional investors.
Practical Tips for Prospective Buyers
- Due‑diligence checklist
- Verify tenant’s credit report (AAA rating, annual financial statements).
- Review renovation contracts and warranties (especially HVAC and façade).
- Confirm all building permits and compliance certificates (E‑Bau‑Standard, fire safety).
- Financing considerations
- Opt for a 60‑70 % loan‑to‑value (LTV) to maintain a DSCR > 2.0.
- negotiate a fixed‑rate loan with a 10‑year amortisation to align with the lease term.
- Tax optimisation
- Leverage Austrian depreciation rules: 2 % straight‑line for residential buildings plus accelerated depreciation for the renovation cost (up to 5 % over ten years).
- Explore EU‑wide investment incentives for energy‑efficient assets (potential 10 % tax credit).
- Asset management
- Employ a local property manager familiar with municipal tenants to handle routine inspections and compliance reporting.
- Schedule a mid‑term energy audit (year 5) to validate ongoing ESG performance.
Comparable Market Transactions (2024‑2025)
| Asset | Location | Units | Sale price (€) | Cap rate | Lease type |
|---|---|---|---|---|---|
| “Bauernstraße Complex” | Linz‑St. Veit | 28 | 5.8 M | 5.9 % | 15‑yr net lease |
| “Paarer Straße Residence” | Linz‑Innsbruck | 32 | 6.5 M | 6.0 % | 10‑yr triple net |
| “Donaupark Apartments” | linz‑Urfahr | 24 | 4.9 M | 6.3 % | 20‑yr net lease |
The Linz‑Urfahr complex aligns with the top‑quartile in price‑to‑rent ratio and cap rate, confirming its status as a premium asset.
Frequently Asked Questions
Q: What is the risk of tenant default?
A: Minimal. The tenant is a municipally owned housing association with an AAA credit rating, backed by the Austrian government’s guarantee scheme for public housing contracts.
Q: Can the lease be sub‑let or assigned?
A: The lease permits assignment with the landlord’s prior written consent, wich is typically granted for institutional sub‑lessees.
Q: How does the 20‑year lease affect resale value?
A: Assets with long‑term net leases often command a discount to market price but provide a built‑in yield that offers investors a predictable return, making them attractive to pension funds and REITs.
Q: Are there any upcoming infrastructure projects that could impact the asset?
A: Yes. The Linz City Council approved the “Urfahr‑Tram Extension” in 2025, set to commence construction in 2027, enhancing public transport connectivity and likely boosting rental demand.
