will only come on the market after, or short- ly before, completion and rental. The high credit volume scheduled for refinancing this year has motivated many players to evaluate the sale of individual properties to reduce their debt financing load. Private investors, family offices and foundations remain the dominant buyers. A growing number of special funds is currently expanding beyond the threshold of research and market monitoring into actual acquisition activity. An analysis by use shows continuing strong demand for existing residential properties, whereby the increasingly active special funds place spe- cial value on sustainability and compliance with the EU Taxonomy. Demand is high for properties with fixed-term contracts and a realistic potential for rental adjustments. The demand for properties in the hospi- tality sector (hotels, serviced apartments, student dormitories, etc.) remains strong.
the office sector is also a clear function of the location.
Here, commercial use is by far the primary motivation. An interesting fact is that this market segment is not dominated solely by local and German players, but also includes a substantial number of international investors. In the retail sector, the greatest demand comes from local convenience suppliers and retail parks. Office and commercial buildings in Vienna’s inner city pedestrian zones and, increasingly, also in the Mariahilfer Strasse have become interesting transaction targets. Demand in A review of the players on the real estate investment market shows open-end funds, insurance companies and distressed property ow - ners as the main sellers.
Investment Market
Properties at top locations with sustainable technical features and secured, long-term cash flow are high on the shopping list of local private investors as well as the few active special funds. Properties at weaker locations tend to attract increasing interest from developers for conversion, especially to residential use. In view of the developments in Ukraine and the Near East, the only hope is that these crises will have no, or only limited effects on the Austrian real estate market and not disrupt the positive trend that characterised the beginning of 2026.
2026 is off to a good start, the market is finally showing the first signs of recovery.
The extremely strong fourth quarter in 2025 with a transaction volume of roughly EUR 2 billion was followed by substantial investor interest during the first two months of the new year. The market appeared to ignore the still weak performance indicators produced by the Austrian economy. Howe- ver, uncertainty returned with the outbreak of the crisis in the Near East. The branch assumes the impact on the European and, above all, on the Austrian real estate investment market will be limited, but con- sequences for the domestic market cannot be excluded in today’s globally integrated economy. Numerous owners have recently decided in favour of selling or have started to test the market. The consultants involved in sale preparations are now operating at
a speed not seen in many years. Selling intentions are visible throughout the branch – from private investors to insurance companies, funds and public institutions to project developers. It is still unclear whether current interest rates will permit a further increase in transactions and whether banks will provide the necessary financing volumes. Many market players see an end to the steadily rising wave of bankruptcies, but a substantial influence on the market will remain at least during the first half of 2026. For many investors, this situation serves as a trigger for attractive acquisitions. That would, all in all, lead to a cautiously positive market outlook but under the assumption
of a “quick” resolution to the conflict in the Near East without any major impact on the global capital markets. Real estate yields in Austria have remained relatively low in European comparison and, consequently, the potential for rent increases is the most important driver for investments. This is still especially true for existing properties in the residential sector but also applies to commercial properties like offices or hotels at good locations. The weak growth generated by the Austrian economy combined with rising interest rates and high exit yields has pushed de- velopment activity in all segments down to a historical low. In spite of this situation, the few properties currently under construction
Reference Projects – Investment
Muthgasse 11
Wipplinger Straße 35
Science meets investment in the brokerage of this over 18,000 m2 property, which currently houses the University of Natural Re- sources and Life Sciences. EHL Investment Consulting success- fully brokered this first-class life science property in the 19th District. Within the framework of a co-ex- clusive contract, EHL Investment Consulting marketed this fully rented office and commercial building at Franz-Jonas-Platz with over 11,000 m² of usable space in a central location at the Floridsdorf Railway Station.
In Vienna’s 1st District, EHL Investment Consulting brokered the ‘Haus der Europäischen Union‘, a modern office building with over 4,600 m² of usable space, underground parking and two penthouse apartments.
Office properties – prime yields in European comparison (in %)
Total area
4,600 m 2
Total area
18,200 m 2
8 %
Hallmann Holding GmbH
Client
Client
Privatinvestoren
8.0
6 %
Franz-Jonas-Platz
Hietzinger Kai 101-105
6.5
6.25
EHL Investment Consulting brokered the former Allianz headquarters at Hietzinger Kai to Kollitsch Invest. Plans call for new development of the roughly 22,000 m² and conversion to residential, office and commer- cial use.
5.0
5.0
5.0 4.8
4 %
4.5
4.3 4.25
4.2
4.0
4.0
2 %
Total area
11,000 m 2
Total area
22,000 m 2
Client
S IMMO AG
Client
KGAL
0 %
Source: EHL Market Research | BNP Paribas Real Estate | Q1 2026
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