Conwert sees value in redevelopment projects in Vienna

Vienna-listed property firm Conwert Immobilien Invest expects to complete 232 new loft apartments with roughly 19,000 m² of usable space in Vienna by the end of 2009. The company said it will create a valuable addition to the housing supply in the capital by redeveloping older properties. According to the statement released on Monday, construction activity in Vienna has not kept pace with population growth and this has led to an increased demand for housing. The company hopes that its plan to redevelop older properties will create urgently needed space in existing central locations.

Johann Kowar, chairman of the Executive Board of conwert Immobilien Invest said these projects reflect the conwert strategy 'to focus on high-quality inner city properties, and will further strengthen our leading market position in this segment.'

The population of Vienna is expected to increase to 2.1 mln by 2050, generating a need for over 200,000 additional housing units. Forecasts also show that more than 50% of the residents in Vienna will live in one-person households by 2050. The strong demand is contrasted by low level of construction. The company estimates that roughly 7,500 new apartments are completed each year. However, demolition or the combination of existing apartments has limited the net increase to only 5,000 - 6,000 apartments, or nearly 2,000 - 3,000 units below the annual requirement.

'Both of these factors will lead to enormous demand pressure on the Vienna housing market. Especially in the high-quality inner city segment, where the expansion of living space is complicated, demand has already begun to exceed the available supply. For this reason, the creation of additional housing is vital,' added Kowar.