Overview retail market Vienna
Executive Summary
Shopping as an all-inclusive experience
Vienna is one of the world’s most popular expansion targets
Shopping centres are undergoing a transformation from pure shopping locations to innovative experience worlds with an extensive gastronomy and entertainment offering. This trend will be connected with wide-ranging investments in refurbishment and modernisation over the coming years as well as a substantial reduction in the available space for traditional retailers.
Together with London, Paris, Moscow and Berlin, Vienna remains one of the five most popular expansion targets for international retailers in Europe. In the worldwide ranking, Vienna holds tenth place.
Less and less space is classified as prime
The search for space is increasingly concentrated on absolute top locations. At the same time, the definition of prime is narrowing, and many locations that were considered very good only a few years ago no longer meet the necessary criteria and are seeing an increase in vacancies.
Investment market limited by a lack of products
The demand by international investors for retail properties in Austria remains high, but the supply is limited – above all in the large-scale segment. Prime yields have fallen to a record low of four per cent for shopping centres and five per cent for retail parks and remain under pressure due to the lack of supply.
Tourism strengthens retail development
With a year-on-year increase of nearly four per cent to roughly 15.5 million overnight stays, Vienna set a further record as a tourist destination in 2017. The growing popularity of the city with financially strong tourists from China, the USA and, above all, Germany has become a key driver for the retail sector.
Important market indicators
Economic data Austria 2018
Austria 5.5% EU (28) 7.3%
Unemployment rate (Eurostat)
Nom. GDP EUR bn.
387.9
Continuing trend towards space reduction
Economic growth
3.0%
Inflation
2.0%
The production of new space in shopping centres and retail parks has practically come to a standstill. In addition, space in less sought-after locations that is no longer lettable is increasingly being removed from the market.
State budget deficit
-0.4%
Austria 37,826 EUR EU (28) 30,825 EUR
GDP per capita
Austria 22,597 EUR Vienna 1st district 38,463 EUR
Purchasing power per capita (2017)
Source: Austrian Federal Economic Chamber| GfK
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