“We expect an exciting year 2019 for all areas and asset classes on the Austrian real estate market. New market dynamics in the housing market, in demand for offices and in the logistics market will shape this year,” says Andreas Ridder, Managing Director Austria & CEE at CBRE.
Based on the good economy and the growing online trade, the high demand of international developers will continue. The increasing completion volume of third-party-worthy project developments and the growing interest in sale and lease-back transactions was leading to a higher investment activity on the domestic industrial and logistics market in 2019, CBRE outlines the 2019 trends on the Austrian real estate market.
The commercial real estate specialist made the following forecast in their just published Market Outlook:
-) The increasing volume of completions – influenced by the good economic situation and the growing online trade – lets us expect a higher investment activity on the Austrian industrial and logistics market in 2019.
-) The market entries of international market participants in the parcel logistics sector intensify the already tough competition for land reserves on the outskirts. The potential to reuse existing Class B and C real estate will therefore continue to gain in importance in the future.
-) The competition between the residential, retail and industrial and logistics types of use in urban regions is intensifying.
-) The interest in sale and leaseback transactions is growing steadily, which in 2019 will lead to higher activity in the investment market for industrial and logistics real estate.
In 2018 Austria was a popular destination for international developers of logistics properties. In addition to the market entry of Garbe Industrial with a project development in Steyr, Upper Austria, VGP NV announced the acquisition of a Magna-used property with development potential for a further 45,000 m² of rental space. The Industrial Campus Vienna East, developed by Deutsche Logistik Holding, will also be expanded.