Vienna – the annual office market report for 2017 has been published and confirms not only Austria’s largest economic growth in six years, but also promises many other positive developments for the office real estate for the new year.
In 2018 many construction projects will be completed, such as The ICON Vienna – of which a tower has already been pre-let to BAWAG – or the Austria Campus, which offers perfect transport links with its location right next to Vienna’s main railway station.
Furthermore, the area around the Wienerberg in the south of Vienna is growing steadily. In 2018, for example, the innovative office location Inno Plaza will be completed, which is not only close to the motorway, but also easily accessible by the underground line U6 or the train.
The strong economic growth in Austria is also reflected in the investment market, where an increase of about 80 percent was noted compared to 2016.
Most of the transactions were carried out in the field of office real estate and the Austrian market is also becoming increasingly popular with investors from North America and Asia.
The positive development can be seen not merely in the office real estate, but Austrian logistics and industrial real estate also represent an increasingly attractive alternative for investors: the returns in those two fields are constant at around 6 to 8 percent.
“Future forecasts for the Austrian office real estate market promise that Austria will not only become more and more attractive as a business location, but also remain competitive throughout Europe,” said Andreas Polak-Evans, SIOR and Managing Partner at Modesta Real Estate.