Commercial property for sale in Vienna | Buy commercial property in Austria

WHY INVESTMENTS IN СOMMERCIAL PROPERTY IN AUSTRIA ARE PROFITABLE

Every year the share of foreign capital in the Austrian market rises, and almost one third is taken by German investors as well as Russian, Asian and more recently Koreans who also play a big role in the market.

Austria has just started showing its potential in terms of real estate for foreign investors, by gradually allowing potential buyers into its domestic market.

This factor provides the perfect condition for the country’s further development and growth. Below we will give an overall summary regarding some of the main features of the commercial property market in Austria.

In terms of the return ratio on investment and risks, Austria sits within the middle ground among the rest of the EU countries. Apart from low interest rates, the country is known for a moderate risk and return profile, creating a beneficial environment for investors.

In 2020, the total real estate investment in Austria amounted to EUR 22B despite the COVID-19 pandemic crisis. The Austrian economy gained over EUR 280M from the hospitality sector alone due to the resale of large hotels. The real estate market accounts for more than 60% of investments, with offices, tenement housing and warehouses generating the highest ROI.

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In 2019 the prime annual office rent cost in Vienna was EUR 31.9 per sq ft with a 3.7% ROI, which is 3% higher than Paris and plus 2.5% compared to Berlin.

The average price of the yearly rent for commercial spaces was EUR 432 per sqft with a yield of 3.4%. In comparison, in London, Zurich and Berlin this index reaches 2.5%.

In the large Austrian cities, especially Vienna, there are well-reputed educational institutions with successful commercial ties, besides multiple landmarks. These factors create an exceptional environment for business, as well as the development of a prosperous society with growing demographics and higher income. Consequently, this ensures liquidity and stability in the markets, including the real estate industry.

Despite the fact that compared to 2019 there was a decline in GDP by 6.6% in 2020, the indicator increased significantly by 3.4% in 2021 with the pandemic being the main reason for such a downturn.

However the Austrian economy is expected to return to pre-crisis levels in Q2 2021. Currently the number of business investments in Austria is growing which increases the demand for commercial property.