Vienna Inner City
Vienna | Inner City: The secondary locations are catching up
Vienna‘s Inner City is experiencing remarka- ble growth due to the boom in city tourism and attractive new designs and is clearly catching up with the Mariahilfer Strasse. The growing popularity of secondary locations, in particular, has created positive impulses for the entire retail market.
The Inner City in Vienna with its roughly 210,000 sqm of selling space (plus 2.7 per cent in ten-year comparison) spread over 1,428 retail outlets on more than 10 km of street length has moved substantially
have an even lower vacancy rate at 1.7 per cent, but are still slightly above the long- term average. This improvement is attributa- ble, above all, to the positive development of marginally weaker secondary locations.
larger outlets in top locations, which cause even many financially strong luxury brands to hesitate on contract conclusions. On the other hand, various secondary locations have become more attractive due to the reduction of traffic, greening and appealing designs. Examples are the Rotenturmstras- se, Neuer Markt, Petersplatz and Schwe- denplatz are scheduled to follow. Vienna’s only submarket with slightly rising rents The success of the Inner City is also evident in the development of rents. It is currently the only submarket in Vienna that can demonstrate a modest upward trend. Prime rents are not involved here, as they have apparently reached their upper limits for the time being, but the rents for good secondary locations have a certain upward potential.
closer to the Mariahilfer Strasse. It can be expected to overtake this leading player in the foreseeable future, also because the city centre is continuing to outperform the entire Vienna market. The main driver for this development is the remarkable comeback of city tourism, which generates strong impulses for luxury labels and gastronomy. This has also been connected
The main driver for this de- velopment is the remarkable comeback of city tourism with its strong impulses for luxury label and gastronomy, which has also led to a substantial decline in the vacancy rate.
with a substantial decline of 0.7 percentage points in the vacancy rate to 3.4 per cent in 2023. The top locations in the “Golden U“ (Kärntner Strasse, Graben and Kohlmarkt)
The background for this is twofold: very ambitious rental expectations by the property owners of up to 800 Euros for smaller spaces and 200-300 Euros for
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Retail Market Report
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