Investment
Increasing interest by investors in retail properties
Mag. Franz Pöltl FRICS
Managing Partner EHL Investment Consulting GmbH
DThe real estate investment market presents a very fragmented picture in the retail area. Individual segments are again more popular with investors, while others are still confronted with major challenges. Investors have basically shown little or no interest in the retail segment since the outbreak of the pandemic at the beginning of 2020. This picture would also not be changed by the inclusion of the high, cyc- le-independent demand for supermarkets
and local shopping infrastructure which has continued for over ten years.
ting during the past five years. There are, however, signs of a trend reversal: Several retail parks and properties with local supply functions have already been sold this year and other similar transactions are currently in a stage of advanced negotiations. Investors generally place their trust in the Austrians’ purchasing habits, which means the shopping experience in stationary spaces is more important than online buying for consumer goods. This is also
The hype in the logistics sector which led to a strong yield compression was also visible in the retail segment, but with an opposite sign. There has not been a single transac- tion for a large, cross-regional shopping centre in Austria since the end of the last decade. Although retail parks have a prima- rily local supply function, investors’ interest in this segment was also rather disappoin-
Office and retail yields 2016 - 2025
7 %
6 %
5 %
4 %
3 %
2 %
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025*
Retail (Retail park)
Retail (Shopping mall)
Retail (High street)
Office
*Forecast, Source: EHL Market Research | Q3 2025
16
Retail Market Report
Powered by FlippingBook