Retail Market Report | 2020

Facts and Figures The Salzburg retail market

Sales space city

72,800 sqm

Sales space per resident

0.47 sqm 114 sqm

Ø Shop size

Stage of expansion

30.3 %

Vacancy rate

1.5 %

Fluctuation rate

11.9 %

Source: Standort + Markt 2019/20

The Salzburg Retail Market

highly regarded and successful implementation of the Salzburg Festival provides hope that Salzburg will soon be able to return to old times.

At 73,000 sqm, Salzburg has relatively little city- centre retail space, even significantly less than smaller cities such as Innsbruck and Klagenfurt. Retail is oriented less toward locals, but primarily toward wealthy international tourists. This is shown, for example, in the disproportionately high share of space for retail-supporting use, particularly gastronomy (Salzburg 29 percent, all of Austria 23 percent).

“The Salzburg Festival provides hope for a speedy return to high-quality tourism”.

The city’s extraordinarily high level of dependence on tourism is heavily strained at the moment. The

The most popular locations are Getreidegasse, Kranzlmarkt and Judengasse as well as Sigmund- Haffner-Gasse. Primarily international and Austrian luxury brands have opened locations in these streets, recently for example, Louis Vuitton, Meindl Fashion and Falconeri. The appeal of these tenants is reflected in prime rents of up to EUR 140/sqm. Rising rents, however, have resulted in established retailers being displaced to secondary locations. What is striking is that because of the historical range of existing buildings, the average shop space of 114 sqm is quite small. In the corona crisis, the vacancy rate is also not much higher than the excellent 1.5 percent (much less than in the city centre of Vienna) dating from the start of 2020.

Salzburg Demography & Economy

With around 155,000 inhabitants, Salzburg is the fourth largest city in Austria and shows continuous, moderate population growth. At EUR 24,444, purchasing power per capita in the federal province of Salzburg is the third highest in Austria. In no other federal province is the development of the retail property market as dependent on tourism as it is in Salzburg. Nearly two million overnight guests visited the city of Salzburg last year. The number of day visitors is likely around nine million annually. Measured by population, Salzburg is one of the cities in Europe with the most visitors.