Investors attracted by Austrian stability
More European investors are considering investing in Austrian real estate as it promises long-term stability, says a top property group IVG Immobilien AG, one of Europe’s largest real estate and infrastructure companies, says most interest is focused on Vienna, which attracts some 80% of the country’s annual real estate investment, around ?1.2billion/US$1.55billion/£1.2billion.
The Austrian capital offers 10.6million square metres office and 2.4million square metres of retail space, says a report in Property Investor Europe.
Annual investment is rising due to increased market transparency and the nation's comparative political and economic stability.
Austrian Gross Domestic Product (GDP) has grown at an above-average rate over the past three years, and is expect to increase 0.9% in 2013. Austria has the lowest unemployment rate in Europe at 4.4%.
IVG Immobilien says many office tenants are postponing decisions to move because of insecurity on European capital markets. It therefore expects the 7% vacancy rate to rise slightly next year.
A large number of retail developments are expected to soon be completed. Retail density, at 1.9 square metres per capita, is already among the highest in Europe. IVG Immobilien expects a renewed interest in high street retail developments, especially new developments in inner city locations.
High-quality residential housing in Vienna is becoming scarce as the population continues to rise, IVG adds.
IVG Immobilien manages assets worth approx. ?21.4billion/US$27billion/£17billion at 19 sites with around 550 employees.