Excerpt of the market report:
Retail market remains exciting
The demand for luxury locations in Austria – first of all Vienna – is still as strong as ever. The Goldenes Quartier p.e. is now almost fully let. Also there is a highly competitive market for shopping malls. 2 new shopping malls are going to open on the Viennese market (BahnhofCity at Hauptbahnhof and City Gate in the 21st district) and shopping malls in the provinces are still very successful. lt remains to be seen how the increasing online business will affect the stationary trade.
Top rents in the office real estate sector
City centre properties fill up and achieve prime rents between 24€ and 28€. The Office axis Hauptbahnhof has emerged as a new hotspot. Due to the excellent transport connections, the demand for these projects, especially by big corporations, is increasingly rising. The vacancy rate remains stable due to the low volume of new construction.
Hotel market saturated
Comparing the years 2012 to 2016 it’s clearly seen, that planned new openings decrease and that the market is experiencing saturation to a certain extent. The Hotel at Palais Schwarzenberg and the repositioning of Hotel Intercontinental at Stadtpark are two of the most spectacular hotel projects in the upcoming years.
Residential-Prices remain stable
The demand in the rental and owner-occupied property market remains unbroken. There is an abundant supply of high-quality residential properties. The demand for classic high-ceilinged period properties has repressed and noticeably surpassed the demand for roof-top apartments. A further increase in prices is currently not in sight.
Apartment Buildings are still in demand
The „Vienna Apartment Building“ continues to be a coveted investment asset for investors. The share of private buyers investing in apartment buildings is still decreasing and therefore legal persons dominate the market with 82,5%. Despite the upward trend of recent years, the prices have stayed the same in the last months and no price hikes are expected in the near future.
High standards in the industrial and logistics sector
The economic development and political instability are increasingly determining the prospects for industrial and logistics properties. The requirements in the property are getting higher. State of the art facilities, central location, flexibility, economically affordable, third-party usability and certification options: all attributes that the property should provide for sure with steady rents.
Upward trend in the Austrian investment market
Due to the investment volume of about 850 million Euro in the 1st Quarter of 2014, it was soon evident that the forecasted total volume would be achieved. For the coming years the investment volume is expected to constantly increase. More than half of the transaction volume is attributable to the retail sector, followed by office real estate sector and hotel investments.
Project development especially in the residential area
The trend away from the office property and towards the hotel and residential property has further strengthened, whereby a decline in the hotel segment is recognizable. The largest planned residential projects are Seestadt Aspern as well as the areas around the railway stations Hauptbahnhof und Nordbahnhof with a total of 234,500 apartment units.