A top European leader for retail
What makes Vienna so attractive?
Vienna is a big step ahead in the competiti- on for investments by global retail groups. Only a few cities in Europe are ranked ahead of the Austrian capital by the major labels, explained Jens Wehmhöner, Senior Director Pan-European Retail at BNP Paribas Real Estate* in our interview. Mr. Wehmhöner: In Austria, it is sometimes hard to believe that rents in the absolute top locations are substantially higher than 300 Euros per square metre. Is this level sustainab- le over the long-term? Jens Wehmhöner: I haven’t the slightest doubt. First, because Vienna is not particu- larly expensive compared with other major European cities, and second because the city is high on the “must have list“ of major international labels. The LVHMs, Kerings and Chanels of this world must simply be represented here, and they will only accept absolute top locations. And these locations, of course, have their price.
First of all, I would say the booming tourism and its key importance for revenue in the high-quality retail segment. Vienna has recovered extremely well from COVID-19 and can easily compensate for the temporary loss of Russian guests. And with a population of two million, Vienna is one of the largest cities – and a market where global players really don’t want to miss out. * BNP Paribas Real Estate is the global partner of the EHL Immobilien Group and one of the world’s leading real estate service providers. The company is part of the BNP Group and is represented in 23 countries with business activities in transaction, consulting, valuation, property management, investment management and property development.
Where would you place Vienna in European comparison?
Paris and London clearly head the ranking and, without a doubt, are in a league of their own: But then you have Vienna together with other metropolises like the Scandinavian capitals, Barcelona, Brussels and Madrid. When you look at rents, only Milan and Zu- rich are clearly more expensive than Vienna. One good example is the Dior luxury group, which recently opened a global flagship store on the Champs-Élysées and has now leased substantial space in the Golden Quartier. These location decisions are an excellent testimonial for Vienna.
Jens Wehmhöner MRICS Senior Director Pan-European Retail BNP Paribas Real Estate GmbH, Hamburg
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