Overview of the Office Market in Vienna
Executive Summary
Subdued demand for new rentals Rentals totalled approximately 105,000 sqm in the first three quarters of 2021 and, in addition, nearly 12,000 sqm were sublet. The pace of activity on the market increased substantially beginning at mid-ye- ar, and an increase in take-up can be expected in the coming months. Vacancies at record low The low production of new space in recent years has led to a steady decline in the vacancy rate. The current 4.4 % marks an extremely low level in inter- national comparison. However, this statistic does not include the space available for sublet.
Rents I First-time occupancy**** (in EUR/sqm per month) Prime location 18,0 - 25,5 Quality location 13,5 - 18,0 Standard location 10,0 - 13,5 Prime rents 25,5 Investments The interest remains strong in office properties with long-term rentals at top locations. German and Austrian investors are the main demand drivers here, whereby the very limited pipeline has had a negative impact on the offering. Production of new space influenced by refurbishments The production of new space was substantially lo- wer than the previous year at only 73,000 sqm in 2021 (2020: 125,000 sqm). Of special note is the year-to-year increase in the share of high-quality refurbishments, which currently represent 50 % of new space production.
Demand* | Supply 2021 Production of new space
73.000 sqm 160.000 sqm
Take-up*
Market indicators Production of new space
slight downward trend slight downward trend
Economic data for Austria 2021*
Take-up
Vacancies
stable stable
Austria 5.7 % EU (27) 7.1 % Eurozone (19) 7.7 %
Unemployment rate (Eurostat)
Prime yields
Rental prices Average rents
Nom. GDP EUR billion
395.4 3.4 % 2.7 %
stable stable
Economic growth
Prime rets
Inflation rate
* Forecast ** All indicators are based on the total market (old and new buildings), unless indicated otherwise *** According to the Vienna Research Forum,www.viennaresearchforum.at **** EHL Rent Index of 100 existing and/or refurbished office buildings at various locations
Office supply
Total market**
VRF***
Office space in sqm
11.486.050 5.888.179
Vacancy rate
4.4 %
3.9 %
Source: EHL Market Research | Q3 2021
Office Market Vienna 2017 - 2021
300.000 sqm
8 %
270,000
260,000
220,000
210,000
225.000 sqm
7 %
185,000
160,000*
150,000
150.000 sqm
6 %
125,000
73,000
75.000 sqm
5 %
45,000
Vacancy rate
0
4 %
2017
2018
2019
2020
2021
3
Deliveries in sqm
*Forecast, Source: EHL Market Research | Q3 2021
Take-up in sqm
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