Vienna‘s Paulusgasse: Luxury Development Amidst Tenant Distress
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The garbage containers are overflowing and the front gate is open. Shopping carts are piled up in the inner courtyard, trash in the aisles, and bulky waste in the construction pits. An iron scaffolding stretches around the white apartment building. It’s cold inside the house and there hasn’t been any gas since mid-October.
It doesn’t look like it yet, but a luxury property is being built at Paulusgasse 5 in Vienna’s third district. The advertisements are already online. There is talk of new, modern and energy-efficient condominiums, including an additional attic and “townhouses” in the inner courtyard – a purchase price of just under two million euros. “Frist occupancy of the completely renovated old building” can be read in the individual apartment exposés. There will also be new balconies.
According to the website, some apartments have already been “successfully sold.” But the existing tenants stand in the way of big profits. You have lived at the address for a long time and have permanent rental contracts. They report to the WZ about “new residents” who harass them, about rats, defects on the construction site and police checks.
Existing tenants: “They wont to get rid of us”
“The thing is clear: we are supposed to be rented out for the luxury projects. They want to disgust us out. And now that we have no gas,can’t cook,can’t heat,can’t shower,they have us in their hands,” says Lisa. She doesn’t want to read her real name at this point.
Lisa has lived at Paulusgasse 5 for many years. She found her apartment listed online in an exposé, including a balcony that doesn’t yet exist.She shows the WZ videos of rats looking for leftover food in the construction pits and of the “new residents” jumping around on garbage cans.
The “new residents” are frequently enough mentioned in conversation. This refers to the construction workers who are housed in the apartments that were until recently vacant. Lisa shows photos of a man trying to kick in the door to a storage room she rented and another standing on the scaffolding outside her bedroom window at night. some old tenants no longer dare to leave their apartments at night.
Owner: “Allegations baseless”
For Christian Wagner-Zimmermann, the complaints from the old tenants are incomprehensible. He is the managing director of the property owner ST 3 paulusgasse GmbH and the developer. He told the WZ: “The company values respectful cooperation between all those involved and asks for your understanding for temporary disruptions, which regrettably cannot always be avoided during construction work in existing properties.”
According to him, the “new residents” are doing a good job. However, Wagner-Zimmermann confirms that rental agreements have already been terminated due to violations of the house rules – provided those responsible have been found.
According to Wagner-Zimmermann, the rats in the video do not exist either and he refers to an inspection report from a pest control company. Wagner-Zimmermann states that the project should be completed as quickly as possible and only to cover costs.
local location: Visit to Paulusgasse
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Vienna Residents Face Displacement as Historic Building is Converted to Investor Apartments
A real estate project at Paulusgasse 5 in Vienna’s Landstrasse district is raising concerns about tenant displacement and housing speculation. While marketed as a blend of “historical elegance and contemporary living comfort,” the redevelopment is causing hardship for existing long-term tenants, with some facing deliberately worsened living conditions.
The project involves the construction of 26 fully furnished “investor apartments” marketed with a “worry-free rental concept,” allowing investors to purchase properties for short-term rentals. however, the development is proceeding despite the presence of existing tenants with permanent rental agreements. These agreements were initially downplayed, appearing only in small print on the project’s website within individual apartment floor plans.
When contacted by WochenZeitung (WZ) posing as a potential buyer, the estate agent acknowledged uncertainty regarding the future of the existing tenants, suggesting the possibility of offering them financial incentives to leave. However, developer Wagner-Zimmermann initially denied any intention to displace tenants, claiming advertisements for currently occupied apartments were a “marketing mistake” and were afterward removed from the website.
The Landstrasse district executive committee is aware of the situation. While the district office reported deficiencies were identified and addressed in mid-October, they maintain limited ability to intervene in private legal relationships between landlords and tenants.
This lack of proactive intervention has drawn criticism from within the district. Siegrid Widhalm,deputy district leader from the Green Party,stated,”Complaints are passed on instead of taking active action. The residents rightly expect that the district will act and intervene more within its possible scope of action instead of just watching.”
Georg Prack, housing spokesman for the Vienna Green Party, is calling for stronger action from the City of Vienna to protect tenants.He advocates for a range of interventions, including tenant assistance, compulsory administration, and even expropriation under the Urban Renewal Act, warning that without such measures, tenants will “remain at the mercy of speculation.” https://www.wienerzeitung.at/nachrichten/politik/stadtpolitik/2219994-Paulusgasse-5-Spekulation-mit-Wohnraum-in-Wien.html
As of the latest reports, four properties at Paulusgasse 5 have been sold, and fourteen are reserved, including nine investor apartments. This situation is not unique; a study by the Chamber of Labor in collaboration with the TU Vienna identifies common tactics used to displace long-term tenants, including harassment, lengthy construction projects, precarious rental agreements, neglected maintenance, and the introduction of undesirable occupants. https://www.arbeiterkammer.at/themen/wohnen/mietrecht/verdr%C3%A4ngung-aus-der-wohnung/
One resident, Lisa, reports currently having no gas service, resulting in indoor temperatures as low as 14 degrees Celsius. “It’s really inhumane. I don’t know who else to turn to,” she stated.