Investment
Supply shortage in the retail segment
contrasted by substantially higher demand on the part of international investors. Since the production of new space has basically come to a standstill – for shopping centres as well as retail parks – the market will also be limited in 2018, above all by the lack of large-scale projects. One particularly notable development is the growing activity by private investors in the retail segment. Their primary focus is placed on smaller retail units with a local supply function, which are generally not interesting for international investors. In contrast to the exhausted market for shopping centres and retail parks, this submarket is comparatively active.
The demand by international investors for Austrian retail properties remains high, and prices rose by a further substantial margin in 2017. Yields remain under pressure, with a declining trend from the current top level of roughly four per cent for shopping centres and five per cent for retail parks. The real estate investment market in Austria generated a record transaction volume of EUR 4.7 billion in 2017. The change of the volume traded in the retail segment was positive with an increase of 60 per cent from EUR 350 million to roughly EUR 560 million, but played a minor role in the total transaction volume with a share of only 12 per cent. This reflects the low number of attractive properties available for sale, which is
Prime yields
High streets | Shopping centres | Retail parks
Outlook 2018
12
13
14
15
16
17
18*
* Forecast
High Street
SC
RP
Source: EHL Market Research | Q1 2018
Selected retail transactions 2017 | Q1 2018
PROPERTY
SIZE (sqm)
LOCATION
SELLER
BUYER
Retail portfolio
70,000 Austria 16,650 Salzburg
ADIA
BVK
ZIB
IMMOFINANZ
Private investor
ELI - Shopping center Liezen 15,000 Liezen
Rutter
KGAL
Hornbach Stadlau Retail park Stadlau
13,000 Vienna 11,000 Vienna 9,420 Vienna 8,000 Leoben 7,370 Vienna
Private investors Private investors Private investors TH Real Estate
Leasinvest Leasinvest
Shopping center Hietzing
INVESTER United Benefits
Star Center
Private investor
Leiner Flagshipstore
Steinhoff
Laura Privatstiftung
Source: EHL Market Research | Q1 2018
16
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