Overview of the office market in Vienna
Executive Summary
The increase in new space production has been giving the market a significant boost since the beginning of the year. Several notable leases have already been signed, with a few more in the process of being finalised.
By 2024, the volume of completions had already doubled compared to the pre- vious year. This positive trend continued in 2025: with around 132,000 sqm of newly created office space, the production of new space once again reached a remarkable level. However, as the additional space could not be absorbed imme- diately and space consolidation continues to shape user behaviour, the vacancy rate has risen to 3.6 % at present. Production of new space & vacancy rate
Letting performance Rental performance is currently spread across different industries, company sizes and mar- ket segments. This diversity forms the basis for continued stable development of the office market. By the end of the year, it will reach around 210,000 sqm, significantly exceeding the previous year’s result.
Slightly rising rental prices Rental prices continue to trend upwards. This development is the result of a combination of the following factors: excess demand in prime locations, increased construction and financ- ing costs, and persistently high inflation. The prime rent has reached a level of EUR 29.00/ sqm.
The situation on the Austrian real estate investment market will remain tense in 2025. Above all, the ongoing wave of insolvencies and the lack of economic growth are slowing down the recovery. Nevertheless, there are initial signs of a possible stabilization. However, the turnaround will be slow and will not restore the yield and transaction levels seen in the years before the interest rate rise, even in the medium term. Although the transaction volume in the current year is stabilizing at a similar level to the same period last year, the increasing number of review pro- cesses indicates growing investor interest and allows for a cautiously positive outlook despite the continuing challenging market environment. Investment
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Office Market Report
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