VIENNA / BRATISLAVA: FORECASTS PREDICT AN UPSWING IN THE COMMERCIAL REAL ESTATE MARKET
February 2018 – Gerald Eve, one of the leading real estate consulting firms in the United Kingdom and an international alliance partner of Modesta Real Estate in Austria and Slovakia, has published the third edition of the European Property Market Brief. This annual report deals extensively with the commercial real estate market in major European cities and provides insights into current developments and prospects for the future. The developments in the commercial real estate market here in Austria and in Slovakia were examined in greater detail. Despite the uncertainty of the year 2017 for Europe – due to sluggish government formation in Germany and ongoing Brexit negotiations – Austria still has favourable economic prospects. The stimulation of private consumption triggered by the 2016 tax reform has given investors new incentives and further boosted domestic demand. In particular the demand for office space in Vienna has grown and the trend in prime yields fell only slightly to 4% in 2017. In Bratislava, in addition to a solid economic outlook, demand for new office space also remains high. “The report shows that neither Austria nor Slovakia can speak of a slump in the office real estate market. And the consistently positive forecasts for 2018 promote confidence, “says Andreas Polak-Evans, SIOR and managing partner at Modesta Real Estate. Investments in Austrian commercial real estate also remain strong and transaction volumes in the first half of 2017 were 80% higher than in the previous six months. “The completion of the Logistic Center Wien Nord and the newly-founded Industrial Campus Vienna East has led to Austria becoming more attractive as a logistics location,” says Sebastian Scheufele, SIOR and managing partner at Modesta Real Estate. In Slovakia there were also a number of completions in 2017, which brought 43,000 m² of exceptionally modern warehouse space to the market in the first half of the year. A level that is expected to double by the end of 2017. The number of development projects already under construction could be an opportunity for institutional investors. “The logistics market in Slovakia continued to be in high demand for both users and investors in 2017 and this will continue in 2018,” said Scheufele.
Find the complete European Property Market Brief HERE.