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The Austrian Provincial Capitals
Attractive opportunities in the “pro- vincial league“
Graz – the southeast shopping metro- polis
The markets for retail properties in the Austrian provincial capitals are clearly smaller than Vienna, but they still offer very attractive opportunities for real estate investors and tenants from the retail trade, gastronomy and service sectors. A typical characteristic of the situation in these regional capitals, which are classified as primary cities but overshadowed by Vienna, is the com- paratively stronger standing of local players. This reflects the initial concentration of international chains on the larger market in Vienna. Of the eight provincial capitals, the four largest – Graz, Linz, Innsbruck and Salzburg – have attracted attention beyond their regional borders. The most important advantage from the vie- wpoint of the retail trade is the rent level, which is moderate in comparison with the top locations in Vienna. The plus points for investors include somewhat lower vacancy and turnover rates. Over the coming years, these inner city locations should also benefit from increasingly restrictive zoning policies in the surrounding areas (ground sealing by shopping centres, retail parks and parking areas).
Graz has established a firm position as the second most important retail location in Austria after Vienna and occupies a prominent standing among the provincial capitals. This status is supported by the city’s strong growth, which has reached an astonishing 25 per cent since the beginning of this century. In relation to the number of inhabitants, Graz currently has the highest population growth among the major cities in this country. This position is also supported by the city‘s key cen- tral function for the southeastern region of Austria, in other words large parts of Styria, parts of Carin- thia and southern Burgenland. The Styrian capital and surrounding areas are by far the most import- ant retail location for this large catchment area. The Graz shopping centres can also be reached from parts of neighbouring Slovenia in much less than an hour, in other words much more quickly than the capital city in Laibach. This strong base benefits the inner city shopping zones as well as the shopping centres and retail parks on the periphery and in the surrounding areas. The Seiersberg shopping city with its 85,000 square metres of selling space plays a dominant
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