Retail Market Report Austria | 2023/24

Vienna | Inner City Refurbishment, location changes, market entry – (almost) everything is new in the City 2023 has definitely brought a revolution to Austria’s most important retail location, the Vienna Inner City. The 1,408 shops with their 207,200 sqm of selling space have not seen this scope of transfor- mation or redesign in decades, and the changes in the absolute prime locations are proceeding at a particularly rapid pace. The makeovers are, however, largely positive: Investments in attractive facades and shop designs have increased, and a growing number of global top brands are entering the market at the City’s most attractive addresses. The hotspots for these changes include the Kohl- markt, Graben and Kärntner Strasse as well as the Golden Quartier along the Tuchlauben. An inte- resting fact is the near complete lack of available space and longer waiting lists. The “showroom character” is becoming even more important here and actual sales – for example at the Mooncity Vienna (Audi House of Progress Wien) have largely faded into the background. The situation on the Graben is similar: Nearly all vacant space has been rented, also because a number of luxury brands that initially preferred the neighbouring Kohlmarkt have come to see the Graben as an acceptable address – but the closer to the Kohlmarkt, the better. The situation on the Kohlmarkt itself is more complicated: Austria’s

best shopping address is currently the site of numerous refurbishments as well as vacant space.

Sustained momentum for prime locations

“The trend towards the absolute top loca- tions is unstoppable, all strong tenants want to locate in the Inner City or on the Mariahil- fer Strasse. The Kohlmarkt and similar areas will become even more important, and space will be more expensive because the top labels are prepa- red to accept high rents for optimal quality. In contrast, the weaker locations – even the slightly weaker ones – will be the losers.“

Jamal Al-Wazzan Managing Director Al-Wazzan GmbH