Austria enjoys a high level of political and economic stability with a positive economic outlook. It is a strong trading partner with Germany and offers immediate access to the growth markets of Eastern Europe. Within the CRE sector international investment has begun to outpace traditional domestic players. Investors are favourably disposed to the country of 8m people which is renowned for its high quality of life. Having a talented and resourceful workforce it has a world class research and development industry and pro-business ethos. Austria is home to many leading companies including the globally recognised brand Red Bull. A large tourist industry has grown to take full advantage of the spectacular natural landscape – easily accessed by a highly efficient transport infrastructure.
Activity in the Austrian commercial property market is lively as investor interest from outside the country begins to dominate the investment scene. Investors from neighbouring Germany as well as Eastern Europe and Russia have been particularly active here. Retail is proving to be the ‘on trend’ asset class of the Austrian commercial property market.
Both high street stores and shopping centres are proving popular whilst retail parks located on city fringes continue to maintain investor approval. Meanwhile the office and residential sectors are enjoying sustained demand in the prime locations. Elsewhere, the hotel investment market is largely concentrated in the tourist hot spots of Vienna and Salzburg as well as the Alpine regions. Hotel investment opportunities are beginning to open up in some provincial cities though it is expected that the aforementioned Vienna, Salzburg and the Alpine areas will continue to lead the way.