Austria was able to avoid recession in 2012/2013; Vienna’s economic outlook for 2014 is positive, with GDP-growth expected at 1.2%. Real estate investment, especially in the residential sector, is predicted to remain at high levels with Vienna’s population continuing to grow at 1% annually. Population growth thus remains the predominant political topic in the field of real estate.
There were several big urban development projects, including “Hauptbahnhofviertel”, Seestadt Aspern, Nordbahnhof with many investment opportunities. Investment is predominantly Austrian (approximately 75%), the second most active investors are German. One of the largest office-investments with six objects is the Volksbank portfolio of the consortium Jelitzka & Partners and BA Real Invest as well as the Tech21 with the investor Erste Immobilien KAG.
The total office space in Vienna is about 10.69 million m² in 2013. Since the collapse five years ago, the letting performance increased and continues to grow. The vacancy rate is still below 7%. In 2013, the prime rent is €25/m²/month, in good and average locations this is between €12.50/ m²/ month and € 14.50/m²/ month. The largest new buildings in 2013 are the DC Tower 1 with about 43,700 m² (Donauplatte), 2nd Central Office at the park with 15,000 m² (fairgrounds) and EURO PLAZA 5 (Building J-Wienerbergstrasse South) with approximately 11,300 m².©Tupungato_shutterstock
In the shopping streets a strong demand for prime locations is still noticeable. The top areas of the city include the "Golden U" (Kärntnerstrasse-Graben-Kohlmarkt), the Golden Quarter and the Mariahilferstrasse. With the development of the Golden Quarter the space for luxury retailers was significantly expanded. For the first time Vienna is among the top 10 most expensive retail locations in the world (next to Bond Street in London, on 5th Avenue in New York and the Champs-Elysées in Paris). The limited amount of space in the top segment leads to a further increase in rental rates. In contrast, there is a reduced demand for space in less frequented locations (B-and C-locations), where it is more difficult to find suitable tenants.
In 2014, two new malls will be completed in Vienna: the shopping center in the central railway station (Hauptbahnhof Wien) and the shopping center in CITY GATE (21st District). Among new openings/enlargement projects in the past few years are The Mall, G3, City West train station, enlargement Auhofcenter.©woe_shutterstock
The capital of Austria has a highly diversified market. Recent developments include MQM (Media Quarter Marx). An upcoming project with international impact is Seestadt Aspern.
200 international corporations have their Eastern European headquarters in Vienna (including JVC, Heineken, Henkel, Beiersdorf, Siemens) in addition to Austrian companies of global significance (e.g. Wienerberger AG, OMV).
Vienna’s hotel industry is booming at the moment. Between May 2012 and May 2013 the number of beds in the city jumped from around 55,400 to some 58,400. Vienna’s hotels currently have a combined total of around 61,700 beds (as of December 31st, 2013). This total is set to rise to 64,600 by the end of 2014.
Austria’s first Hotel Park Hyatt will start welcoming visitors in spring 2014. This 143-room accommodation is situated in a complex of historic buildings in the old town which is also home to the Goldenes Quartier, Vienna’s new luxury shopping zone. The opening of the new lifestyle hotel of the Spanish Meliá Hotels International group in a skyscraper designed by Dominique Perrault is planned for February 2014. Low-budget design hotel chain Motel One is planning to open further branches in the Austrian capital: the 400-room Motel One Wien-Staatsoper located in a listed building close to the State Opera, and the Motel One Wien-Prater with 359 rooms. Both are scheduled to open in 2014. Plans are also being drawn up for a 530-room Motel One at the new Hauptbahnhof station.Hotel Sacher©Addvisor
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