How strongly has the economic crisis become noticeable in the Austrian real estate industry?
Of course we are also feeling the economic crisis in the area of office rentals, but to a much lesser degree than our colleagues in other European countries. Occupied rental space has dropped from 300,000 square metres in 2008 to 270,000 square metres in 2009. Overall though, it was still a very good year for the whole industry.
How is the market in Vienna doing in all of this?
The Viennese market has traditionally been very stable. What used to be labelled as boring has now turned out to be a great strength, since it means that Vienna is being spared the slump that other metropolises are facing.
In which areas of the real estate industry does it become particularly apparent that companies have to economize?
Many businesses are shrinking their staff, but they are also re-evaluating expiring rental agreements, scrutinizing existing space concepts and, if possible, looking for better use of space in newly constructed projects. They put great emphasis on a good price-performance ratio and are willing to accept minor location disadvantages.
Does Vienna still remain a hub towards Eastern and South-Eastern Europe?
Yes, this is not going to change – even if the markets in that region have suffered a few scrapes due to the crisis. Vienna is still a stable harbour with a high quality of life, a high level of security and moderate rent levels.
How is the market going to develop in 2010?
For 2010, I expect rental levels to be similar to 2009. Austria as well as Eastern and South-Eastern Europe will not experience economic stagnation, but businesses are going to proceed much more cautiously in their investments. This means that existing office structures are also going to be re-evaluated, which in turn will bring new opportunities for developers and landlords. |
