In the area of as-new, taxonomy-compliant properties that meet the sustainability and quality requirements, the price adjustment is much more moderate, especially as there is a widespread shortage of supply in this area. However, due to the lack of new project developments in the process of completion, interest is primarily focused on existing properties, most of which do not yet meet the taxonomy criteria, but generally offer a corresponding yield premium. Core properties are currently enjoying strong demand from family offices and private foundations, which are taking advantage of the current capital market environment to secure properties that do not come onto the market during boom phases.
In particular, the high level of interest rates, the gloomy economic outlook and the widespread reluctance of banks to provide new financing are responsible for the still weak transaction volumes. However, what has changed noticeably compared to previous months is investors‘ auditing activities. It is noticeable that many investors expect interest rates and yields to fall over the course of the year and want
to take advantage of the currently still good market environment to make purchases, even if it is not certain that the bottom has already been reached. EHL is cautiously optimistic for the coming months. The ongoing purchase reviews will be reflected in a number of transactions, some of which are remarkable, as the difference in the price expectations of potential buyers and sellers is also slowly
disappearing in many cases. Although it will probably take some time for the new market equilibrium to form, we assume that the ECB will begin to adjust interest rates downwards in the second half of the year at the latest, which should have a positive impact on the invest- ment market.
It is noticeable that many in- vestors expect interest rates and yields to decline over the course of the year and want to take advantage of the currently still good market environment for acquisitions
Investment reference projects
IP One
City Tower Vienna
EHL Investment Consulting bro- kered the sale of the modernized, historic office building IP One in Hasengasse in Vienna‘s 10th district to an Austrian private investor.
EHL Investment Consulting bro- kered the prominent City Tower Vienna office tower in Marxer- gasse, which is leased to the Republic of Austria and houses the Justice Centre Wien Mitte, to United Benefits Holding.
GLA
6,746 sqm S Immo AG
GLA
26,600 sqm Immofinanz
Client
Client
Erdberger Laende 40-48
Bureau am Belvedere
EHL Investment Consulting brokered the fully leased office building in an excellent location on Prinz-Eugen-Strasse with ap- prox. 9,000 sqm of usable space to Real-Treuhand Immobilien.
EHL Investment Consulting bro- kered the fully let office building on Erdberger Laende with around 18,200 sqm of space and 220 parking spaces to Art-Invest Real Estate.
GLA
9,000 sqm Immofinanz
GLA
18,200 sqm
Client
Client
KGAL
Vienna | Spring 2024
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