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Austria
10 Investors Guide to Europe 2015
Despite its modest size, commercial real estate
investments in Austria are mainly dominated
by cross-border investors, as its capital city
Vienna continue to attract European investors
coming from Germany and the UK essentially.
The investment market in Austria is mainly
dominated by insurers and investment funds with
German ones – like DEKA, KGAL and UNION
INVESTMENT - accounting for a large part of volume
recorded last year. Non-German-speaking investors
are increasingly entering the Austrian market. They
have been active in 2014 in a wide range of assets,
from office to retail.
Investments are mainly concentrated in Vienna,
whose market share reaches 60%; however investors
have also been active in some secondary cities of
the country in order to capture some retail assets
opportunities. Hospitality sector is also driving a
growing interest from cross-border investors.
Market sizing
Austria
Europe
Invested stock
(Total stock)
EUR 39bn
(EUR 148bn)
EUR 3,335bn
(EUR 8,201bn)
Liquidity ratio
(10y average)
n/a
n/a
5.6%
(4.6%)
2014 volumes
(10y average)
n/a
n/a
EUR 187bn
(EUR 142bn)
Market pricing – Vienna (Q4 2014)
Office
Retail
Industrial
Current Yield
5.00% 6.00%
7.75%
Min/Max (10y)
n/a
n/a
n/a
Yield definition
Net initial yield
Source: DTZ Research
Investment activity by source of capital, 2014
Investment activity by asset type, 2014
Source: DTZ Research
Source: DTZ Research
Domestic
Non-European
European
Office
Mixed Use
Retail
Industrial
Other
50%
47%
3%
45%
8%
47%