Introduction
The economic environment for the Austrian retail market has been challenging since the start of the Ukraine war, and it became even more complex with the related sharp rise in inflation and growing economic weakness. This course of events has, naturally, also been reflected in the market for retail properties. However, what we are now seeing is more than just light on the retail property horizon. Energy prices, which had a particularly strong negative impact on households up through mid-2023, are trending downward towards normal levels, inflati- on is declining slowly but surely, the labour market remains robust, strong population growth in urban areas during 2022 has increased the number of consumers, and tourism is booming again. Added to all this are the additional opportunities for short-term expenditures caused by the previous reluctance to make long-term investments, a situ- ation with major benefits for the retail trade and gastronomy. Parallel to these developments, the
stock of retail space is declining – which can also be a positive factor for existing retailers becau- se a smaller supply will improve their current positions. In other words, there are grounds for optimism in spite of the negative news reports over recent major insolvencies and market exits. The retail property market has a solid foundation, several retail branches are witnessing a rising demand for space, and Austria remains an attractive expansi- on goal for international retailers – many of whom are EHL clients. The current transition phase will undoubtedly call for innovation on the part of property investors, but also holds many new opportunities. We invite you to meet with our excellent retail team and together develop a personalised future strategy for your retail space.
Michael Ehlmaier FRICS Managing Partner EHL Immobilien GmbH
Stefan Wernhart MRICS Managing Director EHL Gewerbeimmobilien GmbH
Alexandra Bauer MRICS Head of Office Agency EHL Gewerbeimmobilien GmbH
Mario Schwaiger Head of Retail EHL Gewerbeimmoblien GmbH
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