© iStock/arcady_31
© Franz Brück
Executive Summary
Retailers come under pressure from loss of real purchasing power
Investors‘ criteria include long remai- ning lease terms and top tenants
High inflation and rising interest rates combined with a related decline in real purchasing power and disposable income have increased consumers’ reluctance to spend and, in turn, weakened the outlook for Austria’s retail trade. Vacancies are on the decline due to the reduction in space, despite mar- ket exits and insolvencies The ongoing downward trend in the overall supply of retail space has led to a reduction in vacancies, despite the recent wave of insolvencies headed by the kika/Leiner Group and the exit of international retailers. Demand is unbroken for prime loca- tions The demand for absolute top locations remains strong in spite of the challenging market en- vironment. Vacant space almost always attracts numerous prospective tenants, and rents have risen to record levels.
Security is currently the magic word for real estate investors. The most important criteria, and often necessary conditions for a commitment, are long remaining lease terms and strong tenants. The popularity list is headed by retail parks and good standalone properties. Brick and mortar retail gains market shares over online for the first time The shift of revenue from brick and mortar to online retail has been halted, at least for the time- being. Online lost market shares in 2022 – a very positive signal also in view of the end of corona special effects. Graz confirms its position as No. 2 on the Austrian retail market Graz again strengthened its position as the most important retail market in the Austrian provincial capitals and offers good growth opportunities for the future. This shopping metropolis in the southeast is therefore a focal point for the new EHL market report.
4
Powered by FlippingBook