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<strong>MIPIM</strong> <strong>2022</strong>: Special digital edition for a sustainable real estate industry<br />
Teamplayer<br />
Andrea Dissauer<br />
Teamplayer<br />
Andrea Dissauer<br />
Know-How & High Quality.<br />
Brokerage | Valuation | Property Management | Construction Management<br />
ehl.at<br />
Ausgabe 01|<strong>2022</strong><br />
01
Millennium City / Tower, Vienna
Global Players.<br />
Local Heroes.<br />
A privately-owned, real estate asset<br />
and investment management company,<br />
offering a vertically integrated range<br />
of portfolio, asset and property<br />
management services.<br />
2.7<br />
billion euro assets<br />
under management<br />
180<br />
employees<br />
5operations<br />
in<br />
5 countries<br />
> 1<br />
billion euro<br />
successful exits<br />
550<br />
thousand sqm<br />
total rental space<br />
www.cc-real.com
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<strong>MIPIM</strong> <strong>2022</strong><br />
10 Consensus Above all<br />
10<br />
Consensus Above all<br />
Interview with<br />
Andrea Dissauer<br />
44 Hospitality<br />
must<br />
be revitalized<br />
<strong>2022</strong><br />
<strong>MIPIM</strong><br />
Column<br />
Investing in Austria<br />
Positions & Opinions<br />
8 EDITORIAL<br />
66 IMPRINT<br />
22 SECURE OPTION AUSTRIA<br />
Round Table with Anton Cermak, David<br />
Moese & Franz Pöltl<br />
26 INCREASING RELEVANCE OF ESG?<br />
34 RESIDENTIAL PROJECTS IN THE PIPELINE<br />
58 AUSTRIAN OFFICE MARKET<br />
64 LOGISTICS / INDUSTRIAL MARKET<br />
IN VIENNA<br />
10 CONSENSUS ABOVE ALL<br />
Interview with Andrea Dissauer<br />
42 IMPACT OF THE EUROPEAN GREEN DEAL<br />
Comment by Markus Mendel<br />
44 REAL CIRCLE #24<br />
Hospitality must be revitalized<br />
68 IMMOVISION <strong>2022</strong><br />
Highlights and trends<br />
Fotos: BTL Media, Gugumuck, Adobe Stock<br />
06 ImmoFokus
Wir leben<br />
Know-how.<br />
Den Durchblick behalten.<br />
Mit den EHL Marktberichten.<br />
Büro | Einzelhandel | Wohnen | Vorsorge | Zinshaus<br />
Die ständige Beobachtung und Analyse des Marktes durch unser Market Research Team sowie<br />
der laufende Dialog mit unseren KundInnen sind die Grundlage für die EHL Marktberichte.<br />
Unsere Marktberichte bieten einen umfassenden Einblick in die aktuelle Marktsituation im<br />
Gewerbe-, Wohn- und Investmentbereich und stellen eine solide Basis für gezielte Investitionsund<br />
Standortentscheidungen dar. Denn wir leben Know-how.<br />
Office<br />
Wir leben<br />
Büromarktbericht<br />
Wien |Herbst 20<strong>21</strong><br />
Vorsorge<br />
Wir leben<br />
Vorsorgewohnungen in Wien<br />
Marktbericht | Herbst 20<strong>21</strong><br />
Wir leben<br />
Immobilien.<br />
Wir leben<br />
Immobilien.<br />
Alle EHL Marktberichte sowie<br />
unsere 30 Jahre Jubiläumsbroschüre<br />
jetzt online abrufen oder<br />
kostenlos bestellen:<br />
ehl.at/research
„From 2023, nuclear<br />
and gas-fired power<br />
plants will be considered<br />
sustainable under<br />
certain conditions.“<br />
How<br />
sustainable is<br />
nuclear energy?<br />
N<br />
uclear energy remains taboo for<br />
many investors. The question,<br />
however, is: for how much longer?<br />
The controversial EU taxonomy<br />
regulation has met with little positive response,<br />
even among experts and representatives of financial<br />
service providers. The green label is<br />
unlikely to lead to any major change for nuclear<br />
power - at least in Austria. The rejection of nuclear<br />
power is strongly anchored, so a departure<br />
from the previous line would mean a „loss of<br />
credibility“ for sustainable funds.<br />
With the EU Commission‘s „EU Taxonomy“<br />
regulation, investments in nuclear power and<br />
natural gas in the European Union are to be<br />
considered climate-friendly or sustainable<br />
in the future, subject to certain conditions.<br />
The law has caused a storm of indignation in<br />
many European countries, and actions for annulment<br />
at the European Court of Justice (ECJ)<br />
have been announced.<br />
carbon emissions and a high availability of<br />
80 to 90 percent, nuclear energy could make<br />
a decisive contribution to decarbonizing the<br />
energy system.<br />
In addition to the climate factor, which the<br />
French government emphasizes as crucial,<br />
nuclear power is expected to bring more independence<br />
- a perfectly understandable idea given<br />
Europe‘s dependence on gas from Russia.<br />
Another thought: International, institutional<br />
investors will hardly want to accept that their<br />
buildings heated and/or lit with nuclear power<br />
would lose considerable value in one fell<br />
swoop.<br />
However, this should not prevent the non-nuclear<br />
real estate world from consistently relying<br />
on alternative energy sources.<br />
But: in the EU, 14 of the 28 states operate nuclear<br />
power plants. To achieve climate neutrality<br />
by 2050, as many as six new nuclear power<br />
plants should be built in France, according to<br />
an announcement by President Emmanuel<br />
Macron.<br />
France currently has 56 nuclear power plants<br />
in operation, supplying nearly 70 percent of its<br />
electricity. Two-thirds of France‘s total energy<br />
still comes from fossil fuels such as oil and gas.<br />
Everything can be twisted and turned<br />
Proponents‘ main arguments: nuclear energy<br />
offers similar low-carbon characteristics to renewable<br />
technologies. With no directly caused<br />
Michael Neubauer<br />
Editor<br />
Fotos: Adobe Stock<br />
08 ImmoFokus
INNOVATION HUB<br />
IHR NEUES BÜRO<br />
IM HERZEN<br />
VON FLORIDSDORF<br />
www.twentyone.immo
Positions & Opinions<br />
Consensus<br />
Above All<br />
Teamplayer. In <strong>2022</strong>, Andrea Dissauer will celebrate her 20th anniversary<br />
with the EHL Group. In the middle of last year, she was appointed to the<br />
management board of EHL Immobilien Management. Prior to that, the Styrian<br />
native managed the Asset Management division for five years. Jahre lang den<br />
Bereich Asset Management.<br />
The interview was conducted by: Michael Neubauer<br />
20 years in one company in various<br />
functions - that‘s not common in our fastmoving<br />
economy.<br />
Andrea Dissauer: There was never a dull<br />
moment at EHL. I gained my first experience<br />
as a commercial real estate agent. As part of<br />
property management, I still look after a few<br />
tenants who signed leases back then. I gained<br />
international experience in various markets<br />
in Eastern Europe.<br />
It was an exciting time with much optimism<br />
and good team spirit. Between 2008 and 2013,<br />
my three children were born. My husband and<br />
I shared maternity leave and child-rearing,<br />
home office and cohesion in EHL and in the<br />
family were always a given.<br />
In 2015, I took over as Head of Asset Management<br />
at EHL. Now working at the top of one<br />
of Austria‘s leading property management<br />
companies is an exciting challenge, a very<br />
diverse, responsible and exciting task.<br />
Has real estate always been your passion?<br />
Always. I approached it with great passion<br />
from the first day of my career planning.<br />
When I completed my first course of studies<br />
in real estate management at the Vienna<br />
University of Applied Sciences, the subject of<br />
real estate has captivated me and never let go.<br />
How did you start at EHL?<br />
I had a long job interview with Michael<br />
Ehlmaier and my luck as a broker in the<br />
commercial department was sealed.<br />
In which Eastern European countries have<br />
you been?<br />
I traveled widely - Czech Republic, Hungary,<br />
Poland, Slovakia and Romania. At that time,<br />
the Eastern expansion was in full swing. It was<br />
an exciting time.<br />
In which country did you find the most<br />
exciting market?<br />
I was always very fascinated by the Polish<br />
market, as Warsaw in particular was a very<br />
interesting, fast-moving and booming office<br />
market - it still is today, by the way. Poland<br />
has always impressed me in terms of the<br />
dynamics in the market, very well educated<br />
and loyal employees with whom you could<br />
work hard but also have a good laugh. I have<br />
always felt very comfortable with the rest of<br />
the team, as I can quickly adapt to different<br />
environments and my fellow staff members. I<br />
always accepted the challenges offered to me.<br />
10 ImmoFokus
<strong>MIPIM</strong> | <strong>2022</strong><br />
11
Positions & Opinions<br />
Is there a special deal, a exceptional customer<br />
that you remember fondly?<br />
Bwin. I was involved in the first lease in the<br />
old stock exchange building in Börsegasse<br />
and a few years into the expansion phase into<br />
City Point in Marxergasse in the third district.<br />
I was particularly proud of this deal. It is the<br />
goal of every broker to be able to accompany<br />
the customer over a more extended period of<br />
time as a trusted broker.<br />
How did the job changes within EHL come<br />
about?<br />
This was due to Michael Ehlmaier‘s management<br />
style. He trusts his employees,<br />
recognizes their potential and supports them<br />
on their way. Over the years, I have always had<br />
the support of EHL and have been able to grow<br />
with our customers. I have always heard: We<br />
believe in you. We will make it happen. Sensitive<br />
leadership is what distinguishes Michael<br />
Ehlmaier; recognizing when an employee is<br />
ready to take the next career step.<br />
So, I guess that answers the question about<br />
your mentor?<br />
I had many mentors at EHL, but Michael<br />
Ehlmaier is my great role model, coach and<br />
motivator. Personally, I think he hasn‘t changed<br />
and his leadership style hasn‘t changed<br />
in twenty years. He is still very demanding,<br />
in touch with the latest trends and very well<br />
informed. In addition, he has a great sense<br />
of humour, even if situations that we have to<br />
master are not always only pleasant.<br />
Since you brought up emotions: Are you a<br />
gut or head person?<br />
Gut person to start with. When my head<br />
matches my gut, I know I‘m on the right path<br />
and have made the right decision. To make<br />
the right decisions, gut feeling alone is not<br />
enough. Numbers and facts are essential,<br />
especially in our line of work. I see myself as a<br />
communicative, open person, determined and<br />
often impatient.<br />
I try to address topics openly in the team,<br />
love to work out the best solutions with my<br />
colleagues. Even though I am often perceived<br />
as very annoying, I know that it‘s worth<br />
sticking with something - I don‘t give up<br />
so easily professionally - but I do when I‘m<br />
running. If something doesn‘t work perfectly,<br />
it has to be readjusted. I myself come from<br />
a family business - where you learn from an<br />
early age the importance of a team, team spirit<br />
and enjoyment of work.<br />
Can you still remember your first lease<br />
signing?<br />
It was a 150-squre-meter lease in the Mariahilfer<br />
Strasse during the dot.com phase. Michael<br />
Ehlmaier and Wolfgang Scheibenpflug did the<br />
big deals. I was incredibly proud that I could<br />
close this deal on my own.<br />
What has been the biggest challenge so<br />
far?<br />
You forget a lot and remember the good times<br />
in life. Moving from my asset management<br />
job to administration was certainly a challenge.<br />
I was suddenly leading larger teams,<br />
trying to understand the processes and<br />
programs, it honestly took me some time to<br />
come into my own. After six months, I now<br />
feel very comfortable and have arrived to stay.<br />
That was in the middle of last year?<br />
August.<br />
In the middle of the covid pandemic ...<br />
Unfortunately, we all had to learn to deal<br />
with the issues of the pandemic. In asset<br />
12 ImmoFokus
management the beginning of the pandemic<br />
was especially stressful and a very<br />
demanding time. The positive thing about it,<br />
however, was that we all learned to deal with<br />
it and found a way to keep motivation high<br />
by it holding together. Employee leadership<br />
is always important, even more so in<br />
challenging times. I also came from a small<br />
structure to a very large one - but with Bruno<br />
Schwendinger, I have had a long-standing,<br />
experienced colleague at my side with whom<br />
I can and want to move a lot.<br />
Back to the pandemic - it has not been<br />
an easy time for property managers in<br />
particular. Did you have to conduct<br />
a lot of negotiations regarding rent<br />
reductions?<br />
The employees in property management<br />
were required to prepare a lot of data and<br />
information as a basis for decision-making<br />
for the owners. Managers, accountants<br />
and our legal department were also heavily<br />
involved. Negotiations were conducted by<br />
the owner-managed asset management<br />
team. There were very intensive and lengthy<br />
negotiations, especially in the retail and<br />
hotel sectors. However, it also resulted in a<br />
win-win situation for tenants and owners.<br />
Both sides have learned the value of interacting<br />
with each other again, especially in<br />
such difficult times, and are stronger going<br />
into the future. At the beginning of the<br />
pandemic, no one knew where the journey<br />
would lead. I can still remember exactly<br />
when the then Minister of Justice, Alma<br />
Zadic, announced that tenants would no<br />
longer have to pay rent. How is that going to<br />
work, we all asked ourselves. In the end one<br />
thing must be said in no uncertain terms:<br />
landlords have been left high and dry‚ by the<br />
government.<br />
We have mastered this challenge as well.<br />
Another aspect that became clearly evident -<br />
If there is a dispute, the lease agreement or an<br />
extension also stands on shaky ground.<br />
How did you deal with the issue of rent<br />
reduction? In the eyes of the public,<br />
property administrators per se are to blame<br />
for everything. Do you always understand<br />
all decisions made by owners?<br />
There are many reasons why owners make<br />
decisions, often in the background are financing,<br />
investment strategies, rental packages,<br />
etc. The administrator makes recommendations,<br />
but the decision is up to asset management.<br />
It is the subtle skill of the building<br />
administration to let the tenant feel that<br />
you as a manager are dealing with the issue.<br />
At the same time, to prepare the issues for<br />
the owner so that he can decide quickly and<br />
respond to the tenants’ needs and concerns.<br />
myhive am Wienerberg | myhive Ungargasse<br />
Eine Marke der IMMOFINANZ<br />
<strong>MIPIM</strong> | <strong>2022</strong> 13
Positions & Opinions<br />
Property administration is mostly about<br />
balancing owner and tenant interests; there is<br />
very often a middle ground. A quiet building<br />
with a long-standing property manager is very<br />
important to owners as it guarantees a stable<br />
property and investment.<br />
Have the retail, restaurant and tourism<br />
industries in particular fallen by the<br />
wayside?<br />
The situation has not been easy for any party<br />
to manage, but in my opinion, the tenants<br />
have behaved very reasonably by continuing<br />
to pay the operating costs. Unfortunately, the<br />
Corona period has been with us for a long<br />
time. Sometimes one could also see which<br />
tenants actually wanted to cooperate with<br />
the owner. Cash-strapped tenants are always<br />
special problem cases and during the pandemic<br />
the problem has escalated further.<br />
“Cash-strapped tenants are<br />
always problem cases and<br />
during the pandemic, the<br />
problem has intensified.“<br />
Are the leases being done differently now?<br />
There are even more clauses in the leases now<br />
as a direct consequence of the pandemic, but I<br />
think the fundamental tone has not changed.<br />
Andrea Dissauer,<br />
EHL Immobilien Management<br />
Owners are still looking for creditworthy,<br />
long-term tenants, no matter what asset class<br />
it is. It has always been important to establish<br />
who is coming into my building!<br />
14 ImmoFokus
Have any of your tenants or owners had to<br />
or wanted to take legal action?<br />
No, not regarding a COVID dispute, a consensus<br />
was always found. Court proceedings are<br />
the last resort to enforce one‘s alleged rights.<br />
The negotiations dragged on for some time, as<br />
international owners in particular had to deal<br />
with a different legal situation in Austria - had<br />
to go through longer decision-making processes<br />
and coordination bodies. The complex and<br />
multi-layered contracts were a contributing<br />
factor, especially in the retail and hotel sector.<br />
Poorly formulated contract texts that allowed<br />
a lot of room for interpretation were clarified<br />
and reorganized in the settlements.<br />
It was an xciting time and I think the whole<br />
industry handled this challenge very well.<br />
As a manager or asset manager, you are also<br />
Ihr schnellster Weg zur<br />
individuellen Bürolösung:<br />
myhive-offices.com<br />
myhive am Wienerberg | myhive Ungargasse<br />
Eine Marke der IMMOFINANZ<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
15
Positions & Opinions<br />
WORDRAP MIT ANDREA DISSAUER<br />
With whom (living or already<br />
deceased) would you like<br />
to spend an evening?<br />
Coco Chanel!<br />
I In the next ten years,<br />
I would definitely like to…<br />
… spend a spa<br />
weekend with my<br />
closest girlfriends.<br />
My favorite cup of coffee is …<br />
… with my husband.<br />
What did you do to earn<br />
your first money?<br />
By doing a good job<br />
and with a lot of<br />
dedication.<br />
What book is on your nightstand?<br />
My children‘s<br />
reading material.<br />
Morning or evening<br />
person?<br />
To my husband‘s<br />
dismay - evening<br />
person!<br />
Do you like to<br />
take risks?<br />
Yes, if they are<br />
somewhat predictable.<br />
If you won ten million Euros<br />
in the lottery, what would<br />
you do with it?<br />
I would buy a small<br />
house in Tuscany and<br />
donate the rest to needy<br />
children.<br />
When you turn on the radio<br />
in the car, what‘s playing??<br />
It varies a lot, from<br />
Ö1 to Ö3, audiobooks<br />
or just silence.<br />
Your favorite hobby?<br />
Gardening - and<br />
design.<br />
16 ImmoFokus
a mediator. Bringing tenants and owners<br />
together toward a consensus is a delicate and<br />
skillful juggling act. Transparency is particularly<br />
crucial here.<br />
„The Corona<br />
year has<br />
significantly<br />
increased the<br />
administrative<br />
workload for<br />
all property<br />
managers and<br />
landlords.“<br />
Andrea Dissauer,<br />
EHL Immobilien Management<br />
Do institutional investors tick differently<br />
here than private investors?<br />
Institutional investors have to be accountable<br />
to their investors. This is also a common<br />
thread in asset management. Foundation or<br />
fund directors must be able to prove that they<br />
have handled the money entrusted to them<br />
with care. An all-too-casual waiver of rental<br />
income, for example, could trigger claims for<br />
damages.<br />
that used to take place face-to-face are now<br />
being handled virtually. However, there is no<br />
substitute for personal contact, regardless of<br />
whether it concerns international owners or<br />
our own employees in Vienna, in Carinthia or<br />
Salzburg.<br />
Do you believe in the digital purchase<br />
contract via blockchain?<br />
One should distinguish between negotiation<br />
and settlement in this case. When<br />
negotiating, it is essential to get to know<br />
your counterpart. There are also emotions<br />
involved, and you should be able to feel<br />
them. Personal contact is very important<br />
here. Once everything has been negotiated,<br />
digital processes are faster and make work<br />
much easier. In three years‘ time, we will<br />
undoubtedly be surprised at how quickly this<br />
development has established itself.<br />
How do you define success? Would you<br />
describe yourself as ambitious?<br />
For me, success means being satisfied and<br />
happy with oneself. Ambitious? I pursue<br />
goals consistently. I keep at it, but at the<br />
same time I am careful not to lose myself.<br />
The most important thing for me is that my<br />
team, my family and I are all doing well. This<br />
is the be-all and end-all. And this motto has<br />
accompanied me for many years.<br />
You live in the Wechsel region and commute<br />
to Vienna. Do you drive or take the<br />
train?<br />
I usually drive, but the train is becoming more<br />
of an alternative, since the increasing volume<br />
of traffic. Sitting in traffic jams means that<br />
the time spent on the train could be used<br />
much better.<br />
How many kilometers do you cover in a<br />
year?<br />
Quite a few. I drive about 50,000 kilometers<br />
a year. Vienna, Graz, Salzburg or Carinthia,<br />
the properties we manage, are spread all over<br />
Austria.<br />
I also traveled by train for years. Going home<br />
by car is also a way to shake off the daily grind<br />
a bit and come down. In the morning, we talk<br />
on the phone and listen to music.<br />
Because you mentioned employee management<br />
earlier, what is a no-go for you?<br />
I like to approach people openly. I don‘t want<br />
to be lied to or tricked. If I sense that, I‘m<br />
disappointed, but thank God that has been an<br />
exception in my life.<br />
The gut feeling we discussed earlier?<br />
That‘s the gut feeling. I am not a resentful person,<br />
but I want to be able to rely on employees<br />
Does this mean significantly more documentation<br />
effort?<br />
There‘s no doubt about it: The Corona year<br />
has significantly increased the administrative<br />
workload for all property managers and<br />
landlords.<br />
... and driven digitization forward?<br />
The pandemic has significantly driven the<br />
digitization process. We at EHL have already<br />
digitized many processes. Many meetings<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
17
Positions & Opinions<br />
and to pull together. It‘s important to me to<br />
treat employees and our customers as equals.<br />
That is also a sign of appreciation.<br />
Do you have the feeling that all your<br />
customers are completely honest and open<br />
with you?<br />
Yes, I have always been and still am treated<br />
very appreciatively. I have the privilege of<br />
serving many clients for a very long time and<br />
they also know me very well.<br />
Let’s talk about pitches. EHL is one of the<br />
largest property management companies<br />
in the country. How can you win market<br />
share in this competitive environment? Is<br />
it about price or about quality?<br />
Definitely quality. We don‘t have to grow<br />
over dimensionally fast. We like to grow with<br />
our customers. Quality and performance<br />
are in the foreground. This is increasingly<br />
an internal standard at EHL and also by our<br />
customers. Basically, it is important to me to<br />
continue growing with our stable teams and<br />
challenge them. Building administration<br />
is a training ground. It is the basis for every<br />
asset manager and investor. Of course, I have<br />
ambitious goals. We manage 2.1 million<br />
square meters and have 112 employees. I<br />
would be pleased to see both figures to go up<br />
further. The important thing is maintaining a<br />
common goal and making sure that our employees<br />
enjoy what they do, for the benefit of<br />
our customers. There will always be a certain<br />
amount of fluctuation, but I am convinced<br />
that a common WE is a part of who we are at<br />
EHL, a WE that strengthens and convinces.<br />
The Condominium Act was recently<br />
amended. Can you already estimate the<br />
additional expense?<br />
The reform was necessary. The additional<br />
effort is limited. The owners‘ meetings will<br />
not become more complicated. The main<br />
advantage is that it has become easier to pass<br />
resolutions.<br />
If you could intervene in legislation<br />
concerning real estate, where would you<br />
apply leverage?<br />
To clearly define the legal framework in<br />
terms of sustainability and ESG. In order to<br />
be able to pursue the goals for sustainable<br />
„It is<br />
important to<br />
me to meet<br />
employees and<br />
our customers<br />
at eye level.“<br />
Andrea Dissauer,<br />
EHL Immobilien Management<br />
development, it is important to set a clear<br />
legal framework because this is the only way<br />
to achieve the climate goals quickly and resolutely.<br />
The issue of sustainability affects us all<br />
and has become very important, particularly<br />
in our industry. Especially in the real estate<br />
sector, we are talking about high investment<br />
sums in order to build or renovate a property<br />
in a climate- and future-proof way. There is<br />
enormous potential in the real estate industry<br />
to implement sustainability. With the EU<br />
taxonomy, a dynamic has come into the real<br />
estate market and there is already a trend<br />
towards a common standard on how ESG<br />
compliance can be implemented in practice.<br />
I see a clear legal framework at the federal<br />
level as an important basis for the entire real<br />
estate industry to make fact-based decisions<br />
for the individual real estate segments. This is<br />
the only way to ensure that climate targets are<br />
efficiently implemented and achieved.<br />
18 ImmoFokus
IMMOBILIENBEWERTUNG.<br />
Warum wir?<br />
Weil wir´s können.<br />
www.reinberg-partner.com<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
19
Positions & Opinions<br />
Andrea Dissauer<br />
Andrea Dissauer completed the first part of the degree program<br />
in real estate management at the University of Applied Sciences<br />
Vienna from 2001-2005.<br />
She has been with the EHL Immobilien Group since 2002 and<br />
after holding various positions in sales, property and center<br />
management, she took over as head of the asset management<br />
department in 2015.<br />
Since August 20<strong>21</strong>, she has been the head EHL Immobilien<br />
Management together with Bruno Schwendinger, focusing on<br />
office, retail, logistics and hotel properties.<br />
She is a Member of the Royal Institution of Chartered Surveyors<br />
(MRICS), the world‘s most prestigious industry association of<br />
real estate professionals.<br />
20 ImmoFokus
<strong>MIPIM</strong> | <strong>2022</strong><br />
<strong>21</strong>
Investing in Austria<br />
Secure<br />
Option<br />
Austria<br />
Safe Haven. What makes the Austrian real estate market<br />
attractive to international investors? What hurdles do they<br />
face here? Will the war in the Ukraine trigger a shift in the<br />
investment market? ImmoFokus challenged Anton Cermak<br />
(Beacon Invest), David Moese (Nuveen) and Franz Pöltl<br />
(EHL Investment) with these questions.<br />
The discussion was conducted by: Patrick Baldia<br />
According to the current trend barometer<br />
(Real Estate Investment Market <strong>2022</strong>), 93<br />
percent of the market participants consider<br />
the Austrian real estate market attractive<br />
and 52 percent regard it even as very much<br />
so. What makes Austria so interesting,<br />
especially for international investors? ?<br />
David Moese: We have seen in recent decades<br />
that the Austrian market is relatively stable and<br />
that you can earn quite well here. However, you<br />
can't expect double-digit returns, as in Southern<br />
Europe, for example. It's more a matter of<br />
adding stability to the portfolio.<br />
Keyword stable harbour …<br />
David Moese: Exactly. You can also see that<br />
with our investors, who are mainly insurance<br />
companies and pension funds. In accordance<br />
with their investment guidelines, they are<br />
looking for a certain degree of diversification<br />
in Austria.<br />
Franz Pöltl: Stability is undoubtedly the main<br />
driver for real estate investments in Austria.<br />
The Germans, who tick similarly to the<br />
Austrians, are the largest international investor<br />
group in the domestic market, are also not<br />
looking for volatility. An important point for<br />
international investors is definitely legal security.<br />
We Austrians certainly see this somewhat<br />
more critically than external observers. But if<br />
we take, for example, the developments and<br />
legislative initiatives in the housing sector<br />
in Berlin, then Austria is a haven of stability<br />
despite all its minor shortcomings.<br />
Anton Cermak: International investors<br />
certainly appreciate the legal certainty, predictability<br />
as well as the economic stability in<br />
Austria, which we Austrians perhaps perceive<br />
somewhat differently. One can also compare<br />
the Austrian market with an investment-grade<br />
bond.<br />
In some market reports, investors in Austria<br />
are divided into domestic, German<br />
and international groups?<br />
Franz Pöltl: Before the pandemic, some<br />
non-European investors were active in Austria.<br />
Koreans, for example, have also invested<br />
in the building we are sitting in right now<br />
(note: Millennium Tower). But since the<br />
outbreak of the pandemic, investors from<br />
outside Europe have not really been active.<br />
But I have to say that this only applies to the<br />
buyer side. On the seller's side, some people<br />
are currently thinking very carefully about<br />
whether they should part with their property.<br />
We will see how the market develops this<br />
year when the travel restrictions are lifted<br />
and the international public can come to<br />
Vienna again without any problems. Maybe<br />
then the market will become a bit more<br />
"global" again.<br />
David Moese: I also call myself an international<br />
investor because our parent company<br />
is from the US. But I can't think of many<br />
Americans who invest in Austria. The only<br />
one with a larger investment here is Greystar.<br />
We're here because our company offers<br />
a wide selection of products - including<br />
funds that invest across Europe, but also<br />
special funds, like "The Austria Fund No. 2,"<br />
which is aimed at international investors.<br />
Anton Cermak: We were recently looking<br />
for a headquarters for a Canadian company<br />
22 ImmoFokus
"The investment<br />
market is certainly<br />
still somewhat more<br />
localized in Austria<br />
than elsewhere."<br />
Anton Cermak,<br />
Beacon Invest<br />
in Europe to cover Eastern Europe. The area<br />
around Vienna was the obvious choice.<br />
The reason why the big international<br />
investors don't come to Austria is perhaps<br />
that they can't assess the market well<br />
enough. Austrians are also reluctant to<br />
invest in the USA for legal and economic<br />
reasons.<br />
Franz Pöltl: Low volatility and stable developments<br />
do not really fit the strategy of the<br />
opportunistic Anglo-Saxon investors. Their<br />
business model is usually to exploit the<br />
fluctuations of the cycle. The amplitudes on<br />
the Austrian real estate market are simply<br />
too limited.<br />
David Moese: I can fully confirm that.<br />
From the perspective of the US American,<br />
investments in Austria are just not that<br />
interesting. The market is perhaps also too<br />
dull for them.<br />
What are international investors looking<br />
for in Austria? Is it primarily office and<br />
residential real estate?<br />
David Moese: I wouldn't rule out any asset<br />
class. We see that with our investors as well.<br />
Basically, all of them are interesting. Whereby<br />
the country hotel outside of Vienna is certainly<br />
not the main focus focus.<br />
Anton Cermak: I think residential and office<br />
properties are the focus. Some asset classes are<br />
perhaps somewhat less of an option. Mainly<br />
because the size of the properties is too small.<br />
For example, logistics. What we see here as a<br />
large logistics project is considered small or<br />
at most medium-sized in Germany, France or<br />
Italy. Overall, it is safe to say that the Austrian<br />
market is simply too small for large international<br />
investors.<br />
Will the fact that a German institutional<br />
investor acquired an apartment building<br />
portfolio last year remain just an exception?<br />
Franz Pöltl: That is likely to remain an<br />
outlier. It is difficult enough for Austrians to<br />
deal with the Austrian Tenancy Act (MRG)<br />
in its full scope of application. One certainly<br />
cannot expect international investors to<br />
tackle it. That is also why hardly any foreigners<br />
have invested in the apartment house sector<br />
in the past. When they did, they always<br />
had connections to Austria or Austrian roots.<br />
Another factor is the returns: If you had<br />
kept your investment for a long time, you<br />
certainly could have been able to earn good<br />
money. But the cash-on-cash returns that<br />
international investors like to see has, as you<br />
know, eroded a lot in the apartment building<br />
sector.<br />
Since you mentioned the MRG: What<br />
hurdles and challenges do you still see in<br />
Austria for international investors?<br />
David Moese: Because we just talked about<br />
apartment buildings, there is also the tax<br />
aspect in Austria. I have a tax disadvantage if I<br />
don't have an operation, such as pension funds<br />
or insurance companies. This is different in<br />
Germany when I can buy similar products.<br />
As far as the legal hurdles are concerned, the<br />
example of nursing care real estate comes to<br />
mind. International investors would have to<br />
deal with nine different building regulations<br />
and care legislation procedures here.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
23
Investing in Austria<br />
.<br />
Anton Cermak: The Austrian market is<br />
certainly a closed society. If you don't have a<br />
local partner or a representative office here,<br />
it can be challenging to get into the market.<br />
The investment market is certainly still<br />
somewhat more localized in Austria than<br />
elsewhere. Another challenge is certainly<br />
the long administrative procedures. Legal<br />
security is obviously out of the question, but<br />
why the authorities need so much time for<br />
various matters is difficult to explain to an<br />
investor from one of the Benelux countries.<br />
The possible returns are disproportionate<br />
to the effort involved. Special issues, such<br />
as the MRG, are of course an additional<br />
challenge.<br />
Franz Pöltl: Another critical point is the<br />
transparency of the market. Foreign<br />
investors need a certain minimum level of<br />
transparency or research on the markets they<br />
invest in. This is undoubtedly the case in<br />
Vienna and some of the provincial capitals.<br />
There are regular market reports from<br />
several providers on the office market and<br />
now also on the residential market. I can still<br />
remember how we accompanied a German<br />
fund in its first residential investment in<br />
Graz. After the first possible projects had<br />
been examined, those responsible felt that<br />
Anton Cermak<br />
Anton Cermak is a managing<br />
partner at Beacon Invest and is<br />
responsible for the successful<br />
implementation of transaction<br />
processes. Before joining the<br />
Austrian investment broker, he<br />
held sales management positions<br />
in various corporations.<br />
it was impossible to invest in a new city<br />
without research-based market preparation.<br />
Together with a local partner, we then set<br />
about compiling the first Graz market report.<br />
Following Vienna, Graz has also become<br />
the focus of international, or rather<br />
German, investors. Will other provincial<br />
capitals or even smaller cities follow suit?<br />
David Moese: We are of course interested in<br />
provincial capitals. But how many products<br />
with larger volumes are there really on the<br />
market? Office buildings with less than ten<br />
million Euros are hardly interesting for us. At<br />
the end of the day, you also have to make sure<br />
that you exceed the purchase price in 10 to 15<br />
years. In the office segment, we feel comfortable<br />
in Vienna and Graz. In the retail segment,<br />
it's all of Austria.<br />
Franz Pöltl: The provincial capitals only come<br />
into question as tenants if they are in very<br />
good locations, have extremely long leases<br />
and serve the public sector. Essentially, you<br />
have to look at a market on a usage-type<br />
specific basis. Some international clients<br />
would like to invest in residential real estate<br />
in Salzburg and Innsbruck. But not even<br />
Viennese people can afford anything in those<br />
cities. If you look at the prices there, it often<br />
makes little economic sense. But what is<br />
certainly more and more in demand among<br />
foreign investors is the area around Vienna,<br />
where more and more people are moving<br />
towards. Cities that will certainly up and<br />
coming are Korneuburg, Tulln and Krems.<br />
Some investors are already looking at Wiener<br />
Neustadt. However, since these markets<br />
are much smaller than the metropolis of<br />
Vienna, the projects have to be adapted to the<br />
respective demand and, above all, have to be<br />
the right size..<br />
David Moese<br />
David Moese is responsible for<br />
real estate investments in Austria<br />
at the US investment house<br />
Nuveen. In addition, the Graz<br />
University of Technology graduate<br />
is fund director and responsible<br />
for various Austria strategies<br />
at Nuveen Real Estate.<br />
Anton Cermak: I see it the same way. Of<br />
course, a product has to make sense in terms<br />
of the size of the respective city. A project<br />
with 120 apartments in Wels fits the city. In<br />
Hollabrunn, that would be too much. You<br />
mustn't forget the issue of spread. The big<br />
question is: Are you sufficiently compensated<br />
for the risk you take?<br />
How will the Austrian investment market<br />
develop in <strong>2022</strong>? After all, the cycle has<br />
been going on for a relatively long time.<br />
At the same time, the war between Russia<br />
and Ukraine is threatening adversity on<br />
the geopolitical front. Not to mention<br />
24 ImmoFokus
„Take the legislative initiatives in the<br />
residential sector in Berlin, Austria is a haven<br />
of stability despite its little shortcomings.“<br />
Franz Pöltl,<br />
EHL Investment<br />
Franz Pöltl<br />
Franz Pöltl is Managing Partner at EHL Investment Consulting<br />
and specializes in the large-volume investment<br />
business. Before that, the passionate marathon runner<br />
was Managing Director at Bank Austria Real Invest Immo<br />
and Raiffeisen Immobilien KAG.<br />
possible interest rate hikes and the Corona<br />
pandemic.<br />
Franz Pöltl: : If you look at the past, real<br />
estate cycles have usually turned because<br />
of an external event, like the oil crisis or the<br />
Lehman bankruptcy. Whether or not the war<br />
between Russia and Ukraine will initiate a<br />
trend reversal, I don't dare to say. The only<br />
thing that is clear is that when trend changes<br />
come, they usually come quickly.<br />
Assuming that the war does not trigger a<br />
trend reversal, can the level or transaction<br />
volume of 2019 be exceeded again this<br />
year?<br />
Franz Pöltl: That may well be the case. The<br />
question is, how much volume will come<br />
"You can't count on<br />
double-digit returns in<br />
Austria, like in Southern<br />
Europe, for example."<br />
David Moese,<br />
Nuveen<br />
onto the market? The volume of completions<br />
is too low at the moment, especially in the<br />
commercial sector. However, portfolio<br />
holders will take advantage of the currently<br />
very good environment to make one or two<br />
exits. There are definitely signs of this and<br />
concrete plans for it. For example, in the office<br />
sector, our company has already sold more<br />
existing properties in recent years than new<br />
developments. Recently, ESG (Environmental<br />
Social Governance) considerations may have<br />
also played a role. Not every property owner<br />
has the development expertise to make his<br />
buildings ESG-compliant.<br />
It is important to consider that a good part of<br />
the increase in transaction volumes is also<br />
due to the fact that real estate is being turned<br />
over much faster than it used to be. When I<br />
first started getting involved in real estate,<br />
the typical business model was buy-andhold.<br />
That's where an institutional investor<br />
bought a property intending to hold it in<br />
"perpetuity." Today, most funds have clearly<br />
defined holding periods of between seven and<br />
ten years. Then the intention is to sell again.<br />
And in a dynamic market phase, three years is<br />
often enough to achieve returns on equity and<br />
multiple targets. You can also see this with<br />
developers: Many sell their projects as soon as<br />
they receive the building permit.<br />
Anton Cermak: : The volume of 2019 could<br />
certainly have been achieved or even exceeded.<br />
But the current conflict will throw all<br />
forecasts out the window. One must not forget<br />
that Ukraine is closer to Vienna than Lake<br />
Constance. The local real estate market does<br />
not have to collapse, but many an investor<br />
might look elsewhere. .<br />
What about the pressure on yields? Will it<br />
remain high?<br />
Anton Cermak: The pressure on yields is<br />
great because there is a shortage of properties.<br />
I believe developers and sellers are<br />
stretching the market to the limits right now.<br />
There are too few properties everywhere, no<br />
matter which asset class you look at. That's<br />
not going to change. On top of that, financing<br />
is getting more expensive. The banks are<br />
tightening the capital requirements not only<br />
for the private sector but also for us.<br />
Franz Pöltl: I also believe that yields will<br />
remain under pressure. But we have already<br />
reached a very low level, remaining at under<br />
three percent. At the same time, interest<br />
rates are pushing up at the other end. So, the<br />
potential for a squeeze is limited. But a little<br />
bit can always be managed. <br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
25
Investing in Austria<br />
Increasing relevance<br />
of ESG?<br />
Strong performance. Compared to the previous year, Austrian investment volume increased by 25 per cent<br />
to approximately 4.3 bn Euro. The experts expectations were in fact exceeded. Drivers included the residential<br />
and office sectors as weil as , contrary to the general contemporary trend, the retail sector.<br />
H<br />
owever, the strong performance<br />
of retail can be attributed to two<br />
large transactions, which together<br />
accounted for about two-thirds<br />
of the total retail share. Regardless of the results<br />
in absolute terms, we have seen continued strong<br />
demand for core office, residential and logistics<br />
properties this year. Although investors are now<br />
once more viewing hotel and retail properties<br />
less critically due to their dependence on various<br />
influencing factors related to the evolution of<br />
the pandemic, a full recovery of the two asset<br />
classes is not expected before 2023.<br />
Based on our general assumption, the investment<br />
market in Austria will continue to develop<br />
positively. For <strong>2022</strong>, CBRE currently forecast<br />
a transaction volume of approximately 4.5<br />
bn Euro. Based on investor interest, a higher<br />
volume is also possible, although the supply in<br />
the sought-after asset classes is limited. Many<br />
of the products that will be completed this year<br />
have already been sold to end investors as forward<br />
transactions.<br />
The pressure on less modern office<br />
properties increases<br />
The ever-increasing relevance of ESG has not<br />
so far had such a strong impact on any asset<br />
dass as it has on office properties. Last year we<br />
noticed that investors were much more critical<br />
when considering investment options and<br />
some cases tended to refrain from acquisitions.<br />
Additionally, not every property could be sold<br />
at the originally expected price. In our view,<br />
the gap between core and non-core properties<br />
will widen even further in <strong>2022</strong> and the noncore<br />
properties will also undergo further price<br />
reductions.<br />
Yields continue to fall, but the curve<br />
flattens slightly<br />
Purchase prices have risen massively in some<br />
cases in 20<strong>21</strong>. In the logistics sector in particular<br />
we have registered strongly declining yields.<br />
At the end of the year the prime yield was<br />
around 3.8 percent, bringing Austria closer to<br />
the level of other Western European countries.<br />
Yields for hotel and high street properties as<br />
weil as for shopping centres remained stable<br />
last year. Lower yields were only registered for<br />
retail parks.<br />
The Experts von CBRE expect to see a similar<br />
development in <strong>2022</strong>. Yields in the soughtafter<br />
asset classes: above all offices, residential,<br />
and logistics, will remain under pressure. Considering<br />
the low levels which are already being<br />
achieved, however, it can be assumed that the<br />
curves will flatten more strongly.<br />
Depending on the further evolution of the pandemic,<br />
yields for hotel and retail properties will<br />
either remain stable or could record a slight<br />
decline for the first time since the pandemic<br />
began.<br />
The trends of tomorrow<br />
The share of international investors feil to<br />
about 50 Percent in 20<strong>21</strong>. The fact that approximately<br />
just half of the investment volume<br />
is foreign money is another sign that international<br />
product in particular is currently scarce.<br />
26 ImmoFokus
Volume bandwith<br />
2010 2011<br />
Nevertheless, investors are still under strong<br />
investment pressure and risk diversification<br />
plays a major role, especially in times of crisis.<br />
In order to meet this demand, new asset classes<br />
are continually being established, which can<br />
turn from niche products into real investment<br />
hits within a very short period of time. Such<br />
new trends usually arrive in Austria with a<br />
certain time delay. Market observations from<br />
other European countries suggest, for example,<br />
that life science real estate or data centres<br />
could be among the next big trends.<br />
Transaction volume by origin of investors<br />
2010 2011<br />
Land consumption must be reduced<br />
High costs of land in urban areas, competition<br />
with other types of use, and the need to<br />
reduce land sealing are leading developers<br />
to increasingly focus on re-densification and<br />
conversion. According to the government<br />
programme 2020 - 2024, the daily increase<br />
in land use is to be reduced from the present<br />
figure of 11.5 ha to 2.5 ha per day, or 9 sq km per<br />
year, by 2030. In order to achieve this goal and<br />
to guarantee an efficient use of building land,<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
27
Investing in Austria<br />
innovation is essential in project planning.<br />
The federal government, together with the<br />
provincial administrations, envisages a number<br />
of measures. By surveying and mobilising<br />
vacancies, for example, the existing supply of<br />
living space can be expanded and used more<br />
effectively. In addition, a nationwide monitoring<br />
of land consumption is planned.<br />
In connection with these developments the<br />
resurgence of Grätzl (neighbourhood development)<br />
in larger cities should also be strengthened<br />
and further developed. Grätzl are characterised<br />
by their small-scale structure, short<br />
distances, and accessibility by bicyde or on foot<br />
to infrastructural facilities and workplaces.<br />
Upward trend on the hotel investment<br />
market<br />
Although the ongoing pandemic continues<br />
to affect the hotel investment market, there<br />
is a clear upward trend. In 20<strong>21</strong> more than<br />
twice as much capital was invested in hotel<br />
properties as in 2020, and prime yields have<br />
registered stable development. Thanks to the<br />
government‘s stimulus package the distressed<br />
sales initially predicted continue to be averted.<br />
Subsidies to the hotel industry were originally<br />
scheduled to expire at the end of 20<strong>21</strong>. In November<br />
it was decided to extend and partially<br />
adjust the existing subsidy programme until<br />
mid-<strong>2022</strong>. This includes, among other things,<br />
an increase in the default bonus to a maximum<br />
of EUR 2.3 m per business in place of the original<br />
EUR 1.8 m upper bound.<br />
The upturn should continue in <strong>2022</strong>. We are<br />
observing that investors are once more looking<br />
for appropriate hotel properties as pressures<br />
related to capital availability remain high. Meanwhile,<br />
buyers are again willing to pay prices<br />
similar to pre-crisis levels, something that has<br />
also been demonstrated by recent transactions.<br />
However, the result could be dampened by<br />
insufficient supply as some new construction<br />
projects have been postponed or stopped, with<br />
others put to a different use owing to the impact<br />
of the pandemic.<br />
Leisure hotel industry<br />
recovers the fastest<br />
As already observed in 20<strong>21</strong> we now expect<br />
that a recovery will be feit most quickly in the<br />
leisure hotel industry. Vacation demand in the<br />
domestic market, often labelled „staycations“,<br />
has increased enormously due to the pandemic<br />
and associated travel restrictions. In this<br />
context strong domestic tourism, combined<br />
with a trend towards earthbound, eco-friendly<br />
and decelerated travel, will precipitate a rapid<br />
recovery of the vacation hotel market.<br />
New concepts enter the hotel market<br />
Hospitality start-ups are increasingly up-andcoming.<br />
These are young companies with an<br />
investor in the background, most of whom<br />
28 ImmoFokus
<strong>MIPIM</strong> | <strong>2022</strong><br />
29
Investing in Austria<br />
operate inner-city hotels with as few staff as<br />
possible, thereby keeping operating costs low.<br />
The operating margins of these companies are<br />
consequently higher, meaning that they are<br />
able to pay more competitive lease rates and<br />
sustain these higher lease rates due to their<br />
operating structures.<br />
Vienna residential market: new construction<br />
reaches a peak in <strong>2022</strong>.<br />
While high demand and low supply will ensure<br />
further purchase price increases, rental growth<br />
is ex-pected to be more restrained.<br />
In 2020, there was a surprising changing of the<br />
guard on the Austrian investment market for<br />
commer-cial real estate: For the first time, residential<br />
properties were the most sought-after<br />
asset class, while office, the long-time leader,<br />
came in second. The same picture emerged in<br />
20<strong>21</strong>: According to data from EHL Immobilien,<br />
residential (transaction volume: 1.4 billion Euros)<br />
ranked ahead of office (1.09 billion Euros).<br />
Given the persistently low interest rate levels,<br />
the lack of secure alternative investments and<br />
attractive financing options, investors have<br />
stepped up their involvement in the residential<br />
sector. The Corona-induced challenging economic<br />
environment has also likely contributed<br />
to the shift.<br />
The largest and most important in Austria,<br />
the Vienna residential market, has recently<br />
seen brisk new construction activity. With<br />
almost 20,000 units, more apartments will<br />
be completed this year than ever before. This<br />
means that 2020, which was also a record year<br />
with a completion volume of around 15,500<br />
residential units, will be exceeded by another<br />
30 percent. In the coming years, Vienna‘s new<br />
construc-tion activity will be significantly lower<br />
again. On the one hand, this is indicated<br />
by the declining number of building permits<br />
and dedications in the residential category.<br />
In addition, market experts now see a certain<br />
saturation of the market.<br />
An oversupply of apartments is to be expected<br />
not only in the coming years but also currently.<br />
„The new projects are pre-sold to a considerable<br />
degree,“ explains Andreas Holler, Managing<br />
Director of the residential construction specialist<br />
BUWOG. The demand is driven on the<br />
one hand by the further increasing population<br />
(forecast for <strong>2022</strong>: plus 12,300) and decreasing<br />
household sizes, and on the other hand by the<br />
desire for change and improvement of the<br />
housing situation - pandemic-related, for example,<br />
more living space is in demand. Adds<br />
Holler: „There is still a great structural need for<br />
modern housing.“<br />
A lot of capital is looking<br />
for investments<br />
In the medium term, new residential construction<br />
in Vienna is expected to even out at the<br />
level of the 2010s. According to the BUWOG<br />
expert, this also corresponds to the structural<br />
need and ensures a healthy market with a<br />
balanced relationship between supply and<br />
demand. Interesting: since 2019, for the most<br />
part, only the number of new rental apartments<br />
has grown, but not the supply of new<br />
con-dominiums - except for the growing share<br />
of investor apartments purchased for rental.<br />
Since a lot of capital is still looking for attractive,<br />
long-term investment opportunities, this<br />
situation should not change anytime soon.<br />
Due to the significantly larger supply, Michael<br />
Ehlmaier, CEO of EHL Immobilien, also expects<br />
some-what more restrained price increases for<br />
new rentals. Specifically, the growth is likely to<br />
be between two and three percent. „Depending<br />
on the location, I expect a price increase of<br />
three to five percent compared to the previous<br />
year,“ claims Ehlmaier, who sees purchase prices<br />
rising much more signifi-cantly, nonetheless.<br />
Currently, the price per square meter in<br />
first-time occupancy starts at 5,000 Euros.<br />
CBRE Austria considers the fact that the gap<br />
between developer costs and achievable rents<br />
is widening as another reason for the decline<br />
in construction activity.<br />
The fact that residential yields have been falling<br />
for some time is less surprising. While<br />
three percent can now be earned in the new<br />
construction sector in the provinces, this limit<br />
has already been broken in Vienna - downward,<br />
mind you. Various market forecasts assume<br />
that prime yields will continue to decline. According<br />
to EHL Immobilien, the downstream<br />
quality segments will also continue to increase<br />
in price due to the prevailing supply shortage.<br />
„High land costs in urban areas, competition<br />
with other types of use and the need to reduce<br />
soil seal-ing are leading developers to increasingly<br />
focus on post-densification and conversions,“<br />
according to a market outlook by CBRE<br />
Austria. The government program 2000 to<br />
2024 is also behind this, according to which the<br />
daily increase in land use is to be reduced from<br />
the current 11.5 to 2.5 hectares per day or nine<br />
square kilometers per year by 2030. Austriawide<br />
monitoring of land use is also planned.<br />
Accord-ing to CBRE and EHL Austria, there<br />
is no doubt about one thing: Sustainability is<br />
becoming the defining issue for the housing<br />
industry, both in Vienna and nationwide. <br />
30 ImmoFokus
<strong>MIPIM</strong> | <strong>2022</strong><br />
31
Investing in Austria<br />
Selected investment transactions 20<strong>21</strong><br />
Property Type of use Size/sqm Seller Buyer<br />
Europlaza Office 28,500 DWS ARE Austrian Real Estate<br />
Square One Office 27,300 Strabag RE Warburg HIH<br />
Nordbahnstraße 50 Office 15,500 REInvest Family Office<br />
Ikano Office Park Office 11,600 Family Office Family Office<br />
Ghegastraße 3 Office 5,800 Immofinanz Family Office<br />
Canon Gebäude Office 5,500 LHI Octapharma<br />
Square One Office 27,300 Strabag RE Warburg HIH Workstation<br />
Workstation Wien West Office 17,900 Nuveen Global Family Office<br />
Allianz Tech Center Office 12,000 RPHI Swiss Life<br />
Ikano Office Park Office 11,600 Family Office Family Office<br />
Solaris Office 10,200 Amundi GalCap Europe<br />
Schottengasse 10 Office 7,300 Ergo Versicherung AVV Real Estate<br />
Nordbahnstraße 50 Office 15,500 REInvest IMFARR<br />
Grabenhof Office/Retail ÖBV Wiener Ärztekammer<br />
Zinshaus-Portfolio Residential 16,360 CPI aik<br />
Wohnprojekt „Laaer Wald“ Residential 16,300 vermehrt Gruppe Catella Residential<br />
Quartier Reininghaus Residential 12,360 Mischek / BE-WO ZBI AG<br />
Wohnprojekt „Rankencity“ Residential 12,300 UBM / NHD GalCap Europe<br />
Danube Flats Bauteil 2 Residential 10,000 Soravia & S+B Gruppe Auris Immo Solutions<br />
Wohncampus Reininghaus Residential 7,310 Mischek / BE-WO Hamburg Trust<br />
Wohnprojekt „Das Herzog“ Residential 7,300 STC Swiss Town Consult Corpus Sireo / Swiss Life<br />
Grünstück 22 Residential 5,391 BUWOG BVK<br />
Felmayerpark Schwechat Residential 5,000 Grossmann Immobilien ARE Austrian Real Estate<br />
Wohnprojekt „Kofferfabrik“ Residential 4,100 Sedlak Immobilien Catella Residential<br />
Wohnprojekt „Karl27“ Residential 3,500 Immola GalCap Europe<br />
Maximilian Reich Weg Residential 10,525<br />
Haring Group/Orca<br />
Development<br />
ZBI AG<br />
Dampfgasse 9-11 Residential 6,200 Avoris LLB<br />
Simmeringer Hauptstraße 89 Residential 4,035 Pilz & Partner Gruppe Swiss Life<br />
32 ImmoFokus
Selected investment transactions 20<strong>21</strong><br />
Property Type of use Size/sqm Seller Buyer<br />
45% Anteil SCS Retail > 100,000 Unibail-Rodamco-Westfield Crédit Agricole<br />
AGM Portfolio Retail 32,000 REWE Metro<br />
FMZ Taborland Retail 10,200 Rutter Immobilien KGAL<br />
K2 Kittsee Retail 9,614 Privatinvestor LLB<br />
FMZ Kolibri Knittelfeld Retail 8,800 LLB Immo KAG Betha Zwerenz & Krause<br />
FMZ Klagenfurt Retail 7,014 Union Investment Family Office<br />
Mariahilfer Straße 3 Retail 2,800 Privatinvestor Privatinvestor<br />
Seniorenzentrum Hoffmannpark Retirement home 9,800 IMMAC GmbH Auris Immo Solutions<br />
Seniorenzentrum Tillmitsch Retirement home 84 rooms IMMAC GmbH Auris Immo Solutions<br />
Logistikzentrum Loosdorf Logistics | Industry 50,000 Hofer Family Office<br />
Logistik Center Simmering Logistics | Industry 47,000 WLS Garbe Industrial<br />
BENA Hubs Logistics | Industry 32,000 BENA Hubs Swiss Life<br />
Gewerbepark Weikersdorf Logistics | Industry <strong>21</strong>,400 Granite REIT Westcore<br />
DHL Verteilerzentrum Logistics | Industry 12,250 Karimpol AEW Europe<br />
DHL Express Linz Logistics | Industry 9,000 Meir Logistik Center GmbH Palmira Capital Partners<br />
Amazon Verteilzentrum Logistics | Industry 9.000 Exeter Property Group Allianz<br />
Hotel Ibis Styles Wien Messe Hotel 102 rooms Betha Zwerenz & Krause Schiehser Hotels<br />
Austria Trend Hotel Lassalle Hotel 140 rooms Amisola /KWPS JPI Hospitality<br />
Renaissance Hotel Wien Hotel 309 rooms Amisola /KWPS JPI Hospitality<br />
MEININGER Hotel Wien Downtown Franz Hotel 131 rooms CA Immo LLB<br />
Mooons Hotel Hotel 170 rooms Bridge Group /Moser Architects Real IS<br />
DORMERO HoHo Wien (50% shares) Hotel 143 rooms Kerbler Holding AVV<br />
FRANZ ferdinand Mountain Resort Nassfeld Hotel 144 rooms K1 Hotelerrichtung Arena Hospitality Group<br />
Marietta Hotel 120 rooms Privat Valamar<br />
Q!Resort Health and Spa Hotel Hotel 80 rooms Privat JPI Hospitality<br />
Sporthotel Fontana Hotel 125 rooms Verkehrsbüro Group Auszeit Hotels & Resort AG<br />
Der Grüne Baum Ehrwald Hotel 45 rooms Privat<br />
Deutscher<br />
Immobilienunternehmer<br />
Hotel Böck Brunn Hotel 85 rooms MTK Group Jamal Al-Wazzan<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
33
Investing in Austria<br />
Residential projects<br />
in the pipeline<br />
Where or what is being built and when. Exploreal‘s developer database provides answers to this question,<br />
among others. This ensures that only those apartments that are actually needed come onto the market.<br />
VIENNA<br />
1–2 room apts: 53 %<br />
3 room apts: 33 %<br />
4+ room apts: 14 %<br />
All apartments on offer (n = 3.913)<br />
With loggia: 31 %<br />
With balcony: 52 %<br />
With terrace: 32 %<br />
With garden: 14 %<br />
With open space: 91 %<br />
(loggia/balcony/terrace/garden)<br />
All apartments on offer (n = 8.154)<br />
Apartments: 99 %<br />
Terrace house/Duplex: 1 %<br />
Detached house: 0 %<br />
All residential units iN EXPLOREAL (n = 123.973)<br />
ø 60 Apartments/Project<br />
Arithmetic average of suitable<br />
projects (n = 1.959)<br />
ø 64,2 sqm Living area<br />
Median of all residential units on<br />
offer(n = 8.154)<br />
ø 8,9 sqm Open areas<br />
(loggia/balcony/terrace)<br />
Median of all residential units<br />
on offer(n = 8.154)<br />
ø 0,80 Parking spaces/apartment<br />
Arithmetic average of suitable projects<br />
(n = 1.009)<br />
ø Land cost share: 985 €/sqm<br />
Arithmetic average of suitable<br />
projects (n = 1.414)<br />
Source: EXPLOREAL/Stand: 02.02.20<strong>21</strong><br />
RE/MAX Forecast - Vienna<br />
Demand: +5,5 Prozent<br />
Supply: -0,2 Prozent<br />
Price: +5,4 Prozent<br />
In central locations, condominiums prices are<br />
expected to increase by 4.9 percent. Newly<br />
concluded leases regulation-free rents are<br />
expected to rise by +0.9 percent in <strong>2022</strong>. On<br />
the outskirts, the picture is similar: prices for<br />
condominiums will increase by +4.2 percent in<br />
<strong>2022</strong> and those of new contracts (free of rent<br />
regulations) by +0.5 percent.<br />
34 ImmoFokus
C<br />
urrently, the database covers new<br />
construction projects throughout<br />
Austria with five or more residential<br />
units. The entire project development<br />
process is illustrated, from the purchase<br />
of the property to the sale of the last apartment.<br />
Included is substantiated information from the<br />
most sought-after apartments and current prices,<br />
right through to the land cost share. This makes<br />
it easy to answer the most important questions<br />
from project acquisition to project development<br />
and marketing with just a few clicks. For example,<br />
current and future projects can be easily<br />
retrieved at the district level.<br />
Exploreal uses publicly available data and<br />
keeps it up to date on an ongoing basis. More<br />
than a dozen different data sources are entered<br />
by hand, merged, supplemented and verified<br />
by the company‘s own surveys.<br />
„A particular highlight of the database is the<br />
basic cost component, which is determined<br />
for each project,“ says Alexander Bosak, Exploreal‘s<br />
managing director. „The wealth of<br />
information on the demand situation allows<br />
developers to adjust their projects accordingly.<br />
This means that only those apartments that are<br />
actually needed really come onto the market.<br />
LOWER AUSTRIA<br />
1–2 room apts: 29 %<br />
3 room apts: 36 %<br />
4+ room apts: 35 %<br />
All apartments on offer (n = 3.913)<br />
With loggia: 18 %<br />
With balcony: 24 %<br />
With terrace: 52 %<br />
With garden: 37 %<br />
With open space: 97 %<br />
(loggia/balcony/terrace/garden)<br />
All apartments on offer (n = 4.995)<br />
Apartments: 85 %<br />
Terrace house/Duplex: 13 %<br />
Detached house: 2 %<br />
All residential units iN EXPLOREAL (n = 42.226)<br />
ø 25 Apartments/Project<br />
Arithmetic average of suitable<br />
projects (n = 1.705)<br />
ø 79,5 sqm Living area<br />
Median of all residential units on<br />
offer(n = 4.998)<br />
ø 11,5 sqm Open areas<br />
(loggia/balcony/terrace)<br />
Median of all residential units<br />
on offer(n = 4.995)<br />
ø 1,63 Parking spaces/apartment<br />
Arithmetic average of suitable projects<br />
(n = 1.513)<br />
ø Land cost share: 495 €/sqm<br />
Arithmetic average of suitable<br />
projects (n = 253)<br />
Source: EXPLOREAL/Stand: 02.02.20<strong>21</strong><br />
RE/MAX Forecast - Lower Austria<br />
Demand: +5,9 Prozent<br />
Supply: +1,5 Prozent<br />
Price: +3,1 Prozent<br />
Prices of condominiums in central locations are<br />
expected to rise by 5.7 percent, rents by 1.1 percent.<br />
On the outskirts, prices are expected to<br />
grow less, by 4.9 percent. For rental apartments,<br />
the trend is more sideways at 0.0 percent. Condominiums<br />
in rural communities are picking up<br />
+3.6 percent, while rents are slipping 0.4 percent.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
35
Investing in Austria<br />
BURGENLAND<br />
1–2 room apts: 40 %<br />
3 room apts: 35 %<br />
4+ room apts: 25 %<br />
All apartments on offer (n = 3.913)<br />
With loggia: 24 %<br />
With balcony: 40 %<br />
With terrace: 48 %<br />
With garden: 31 %<br />
With open space: 90 %<br />
(loggia/balcony/terrace/garden)<br />
All apartments on offer (n = 810)<br />
Apartments: 75 %<br />
Terrace house/Duplex: 23 %<br />
Detached house: 2 %<br />
All residential units iN EXPLOREAL (n = 4.503)<br />
ø 14 Apartments/Project<br />
Arithmetic average of suitable<br />
projects (n = 331)<br />
ø 69,7 sqm Living area<br />
Median of all residential units on<br />
offer(n =893)<br />
ø 10,0 sqm Open areas<br />
(loggia/balcony/terrace)<br />
Median of all residential units<br />
on offer(n = 810)<br />
ø 1,42 Parking spaces/apartment<br />
Arithmetic average of suitable projects<br />
(n = 307)<br />
ø Land cost share: 388 €/sqm<br />
Arithmetic average of suitable<br />
projects (n = 51)<br />
Source: EXPLOREAL/Stand: 22.11.2020<br />
RE/MAX Forecast - Burgenland<br />
Demand: +7,3 Prozent<br />
Supply: +2,3 Prozent<br />
Price: +6,0 Prozent<br />
Prices for condominiums in very good locations<br />
will rise by 4.5 percent, in rural communities by 4.2<br />
percent. Residential rents in prime locations with<br />
regulation-free rents are expected to increase by<br />
+2.7 percent in <strong>2022</strong>, and by +1.4 percent in rural<br />
areas.<br />
36 ImmoFokus
STYRIA<br />
1–2 room apts: 37 %<br />
3 room apts: 40 %<br />
4+ room apts: 23 %<br />
All apartments on offer (n = 3.913)<br />
With loggia: 6 %<br />
With balcony: 58 %<br />
With terrace: 41 %<br />
With garden: 24 %<br />
With open space: 97 %<br />
(loggia/balcony/terrace/garden)<br />
All apartments on offer (n = 3.731)<br />
Apartments: 97 %<br />
Terrace house/Duplex: 3 %<br />
Detached house: 0 %<br />
All residential units iN EXPLOREAL (n = 31.651)<br />
Comparison of holiday apartments (n = 67)<br />
ø 34 Apartments/Project<br />
Arithmetic average of suitable<br />
projects (n = 938)<br />
ø 65,7 sqm Living area<br />
Median of all residential units on<br />
offer(n = 3.826)<br />
ø 12 sqm Open areas<br />
(loggia/balcony/terrace)<br />
Median of all residential units<br />
on offer(n = 3.731)<br />
ø 1,33 Parking spaces/apartment<br />
Arithmetic average of suitable projects<br />
(n = 727)<br />
ø Land cost share: 677 €/sqm<br />
Arithmetic average of suitable<br />
projects (n = 124)<br />
Source: EXPLOREAL/Stand: 18.06.20<strong>21</strong><br />
RE/MAX Forecast - Styria<br />
Demand: +7,7 Prozent<br />
Supply: +1,6 Prozent<br />
Price: +9,6 Prozent<br />
The demand for condominiums in central locations<br />
is to rise again by 5,4 percent; a minimal increase in<br />
supply will drive the price upwards to around +8,7<br />
percent upward. On the outskirts as well as in rural<br />
communities, +7.0 percent price increase is expected.<br />
However, rents will only go up by 4.1 percent in central<br />
locations, by 1.8 percent on the outskirts and by<br />
3.5 percent in rural communities.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
37
CARINTHIA<br />
1–2 room apts: 32 %<br />
3 room apts: 45 %<br />
4+ room apts: 23 %<br />
All apartments on offer (n = 3.913)<br />
With loggia: o4 %<br />
With balcony: 41 %<br />
With terrace: 56 %<br />
With garden: 35 %<br />
With open space: 97 %<br />
(loggia/balcony/terrace/garden)<br />
All apartments on offer (n = 744)<br />
Apartments: 96 %<br />
Terrace house/Duplex: 3 %<br />
Detached house: 1 %<br />
All residential units iN EXPLOREAL (n = 7.858)<br />
Comparison of holiday apartments (n = 203)<br />
ø 28 Apartments/Project<br />
Arithmetic average of suitable<br />
projects (n = 278)<br />
ø 77 sqm Living area<br />
Median of all residential units on<br />
offer(n = 754)<br />
ø 19,5 sqm Open areas<br />
(loggia/balcony/terrace)<br />
Median of all residential units<br />
on offer(n = 744)<br />
ø 1,76 Parking spaces/apartment<br />
Arithmetic average of suitable projects<br />
(n = 247)<br />
ø Land cost share: 474 €/sqm<br />
Arithmetic average of suitable<br />
projects (n = 10)<br />
Source: EXPLOREAL/Stand: 18.06.20<strong>21</strong><br />
RE/MAX Forecast - Carinthia<br />
Demand: +13,3 Prozent<br />
Supply: +1,6 Prozent<br />
Price: +12,3 Prozent<br />
For condominiums in prime locations, prices are expected<br />
to rise rapidly by +12.5 percent in <strong>2022</strong>. But<br />
even in rural communities, the price scale for condominiums<br />
is tipping up to +8.7 percent, after only +1.5<br />
percent for 20<strong>21</strong>. Rental apartments in good locations<br />
with regulation-free rents, on the other hand, are<br />
behaving more moderately, and an increase from +3.1<br />
percent to +5.4 percent is still expected.<br />
38 ImmoFokus
UPPER AUSTRIA<br />
1–2 room apts: 36 %<br />
3 room apts: 43 %<br />
4+ room apts: <strong>21</strong> %<br />
All apartments on offer (n = 3.913)<br />
With loggia: 48 %<br />
With balcony: 43 %<br />
With terrace: 31 %<br />
With garden: 25 %<br />
With open space: 99 %<br />
(loggia/balcony/terrace/garden)<br />
All apartments on offer (n = 3.383)<br />
Apartments: 94 %<br />
Terrace house/Duplex: 5 %<br />
Detached house: 1 %<br />
All residential units in EXPLOREAL (n = 30.449)<br />
ø 23 Apartments/Project<br />
Arithmetic average of suitable<br />
projects (n = 1.170)<br />
ø 75 sqm Living area<br />
Median of all residential units<br />
on offer(n = 3.781)<br />
ø 8 sqm Open areas<br />
(loggia/balcony/terrace)<br />
Median of all residential units<br />
on offer(n = 3.383)<br />
ø 1,71 Parking spaces/apartment<br />
Arithmetic average of suitable projects<br />
(n = 1.054)<br />
ø Land cost share: 495 €/sqm<br />
Arithmetic average of suitable<br />
projects (n = 240)<br />
Source: EXPLOREAL/Stand: 18.01.<strong>2022</strong><br />
RE/MAX Forecast - Upper Austria<br />
Demand: +4,6 Prozent<br />
Supply: +0,9 Prozent<br />
Price: +4,6 Prozent<br />
Condominiums in central locations are increasingly<br />
moving into the midfield. Price forecast <strong>2022</strong>: +5.1 percent<br />
compared to 20<strong>21</strong>. On the outskirts: +4.3 percent,<br />
in the countryside +2.9 percent. The trend in new<br />
leases for rental apartments is moving in a positive<br />
direction. In central locations to +1.8 percent for <strong>2022</strong>,<br />
on the outskirts +1.2 percent and in rural communities<br />
from -2.0 percent to +0.6 percent – in any case around<br />
two percentage points more than recently.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
39
Investing in Austria<br />
SALZBURG<br />
1–2 room apts: 36 %<br />
3 room apts: 40 %<br />
4+ room apts: 24 %<br />
All apartments on offer (n = 3.913)<br />
With loggia: 06 %<br />
With balcony: 42 %<br />
With terrace: 55 %<br />
With garden: 24 %<br />
With open space: 98 %<br />
(loggia/balcony/terrace/garden)<br />
All apartments on offer (n = 453)<br />
Apartments: 98 %<br />
Terrace house/Duplex: 2 %<br />
Detached house: 0 %<br />
All residential units iN EXPLOREAL (n = 8.229)<br />
Vergleich Ferienwohnungen (n = 291)<br />
ø 22 Apartments/Project<br />
Arithmetic average of suitable<br />
projects (n = 376)<br />
ø 72,3 sqm Living area<br />
Median of all residential units<br />
on offer(n = 467)<br />
ø 13 sqm Open areas<br />
(loggia/balcony/terrace)<br />
Median of all residential units<br />
on offer(n = 453)<br />
ø 1,78 Parking spaces/apartment<br />
Arithmetic average of suitable<br />
projects (n = 337)<br />
ø Land cost share: 860 €/sqm<br />
Arithmetic average of suitable<br />
projects (n = 78)<br />
Source: EXPLOREAL/Stand: 17.09.20<strong>21</strong><br />
RE/MAX Forecast - Salzburg<br />
Demand: +6,1 Prozent<br />
Supply: -2,9 Prozent<br />
Price: +4,6 Prozent<br />
Condominiums on the outskirts are expected to benefit<br />
in terms of price by +5.7 percent, in rural communities<br />
by +2.6 percent. Rental apartments in central<br />
locations (regulation-free rents and new contracts)<br />
are expected to increase in price by +3.3 percent, on<br />
the outskirts by +4.0 percent, and in rural communities<br />
by +2.9 percent. The differences in residential<br />
property development for rent are thus smaller than<br />
in other provinces.<br />
40 ImmoFokus
REMAX Forecast - Vorarlberg<br />
The price level is at the absolute ceiling in comparison<br />
to the other provinces. The rate of new construction<br />
is higher than in any other region. Price increases<br />
in the double-digit percentage range are expected.<br />
TYROL<br />
1–2 room apts: 35 %<br />
3 room apts: 43 %<br />
4+ room apts: 22 %<br />
All apartments on offer (n = 3.913)<br />
With loggia: 06 %<br />
With balcony: 45 %<br />
With terrace: 46 %<br />
With garden: 22 %<br />
With open space: 94 %<br />
(loggia/balcony/terrace/garden)<br />
All apartments on offer (n = 1.239)<br />
Apartments: 97 %<br />
Terrace house/Duplex: 2 %<br />
Detached house: 1 %<br />
All residential units iN EXPLOREAL (n = 12.465)<br />
Vergleich Ferienwohnungen (n = 185)<br />
ø <strong>21</strong> Apartments/Project<br />
Arithmetic average of suitable<br />
projects (n = 600)<br />
ø 75 sqm Living area<br />
Median of all residential units on<br />
offer(n = 1.240)<br />
ø 13,3 sqm Open areas<br />
(loggia/balcony/terrace)<br />
Median of all residential units<br />
on offer(n = 1.239)<br />
ø 1,67 Parking spaces/apartment<br />
Arithmetic average of suitable projects<br />
(n = 563)<br />
ø Land cost share: 943 €/sqm<br />
Arithmetic average of suitable<br />
projects (n = 95)<br />
Source: EXPLOREAL/Stand: 17.09.20<strong>21</strong><br />
RE/MAX Forecast - Tyirol<br />
Demand: +7,2 Prozent<br />
Supply: -1,9 Prozent<br />
Price: +6,2 Prozent<br />
Condominiums in central locations and in rural communities<br />
are expected to cost +7.0 percent more than<br />
in 20<strong>21</strong>. On the outskirts, prices are expected to go<br />
up by 6.6 percent. In contrast, the situation for rents<br />
looks completely relaxed: For new contracts with<br />
regulation-free rents, increases of +0.8 percent (center,<br />
outskirts) and +0.5 percent in rural communities<br />
are to be expected.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
41
Positions & Opinions<br />
About the author<br />
Markus Mendel is Managing Director of EHL Investment<br />
Consulting EHL Investment Consulting GmbH and in this<br />
function entirely responsible for the Investment/Capital<br />
Markets division..<br />
Impact of the European Green Deal<br />
on real estate investments<br />
Kommentar: Markus Mendel<br />
The European Union‘s Green Deal and the related EU Taxonomy Regulation<br />
will have a lasting impact on the real estate investment market.<br />
Enormous efforts will have to be made to achieve the EU‘s climate targets<br />
by 2050, while at the same time creating sustainable growth. However, a<br />
taxonomy-compliant, „green“ and thus sustainable investment is usually<br />
also associated with higher investment costs. Subsidies on the investment<br />
and financing side are intended to create corresponding incentives<br />
for market participants to implement sustainability goals.<br />
Real estate is particularly affected by this development, as the long useful<br />
life of buildings has a substantial<br />
impact on CO₂ consumption<br />
and the careful use of limited<br />
resources. This starts with the<br />
construction of the property as<br />
well as the raw materials used<br />
for it and continues through<br />
the use of the buildings, which<br />
usually last many decades,<br />
during which approximately<br />
65 to 70 percent of the resource<br />
consumption takes place. This<br />
is why it is so important to set<br />
the right course during the development<br />
of a property, as its<br />
consequences will be felt over an extremely long period of time.<br />
The EU taxonomy bundles these trends toward sustainability, which we<br />
have already been increasingly following in the real estate industry for<br />
several years. It will ensure that in the foreseeable future, development<br />
will only be ESG-compliant and thus sustainable, and sustainability will<br />
also become a central objective in refurbishments. Demand for properties<br />
that meet these ESG requirements is already outstripping supply, and this<br />
trend will continue in the future.<br />
EU taxonomy already been clearly noticeable<br />
Similar to office leasing, where confirmation of sustainable construction<br />
and management through appropriate environmental certificates has<br />
been „state of the art“ for many years. This standard is also increasingly<br />
found in the institutional investment requirements, but also gradually<br />
for private investors - regardless of the specific type of use. Thus, there<br />
is a lot of pressure on developers to focus intensely on sustainability<br />
and energy efficiency in all facets of their planning in order to be able to<br />
deliver a product that is in line<br />
with the market and that will be<br />
rewarded both by its users with<br />
attractive rents and by investors<br />
with good returns.<br />
The influence of the EU taxonomy<br />
has already been clearly<br />
noticeable for some time in the<br />
decisions of portfolio managers<br />
of large institutional investors.<br />
Strategies and investment<br />
programs are currently being<br />
developed to make real estate<br />
portfolios ESG-compliant. In<br />
some cases, de-investment choices are also being made to dispose of<br />
inadequate portfolios or individual properties and thus to clean up the<br />
portfolio or, in other words, to meet the ESG specifications.<br />
42 ImmoFokus
Join us at<br />
<strong>MIPIM</strong>, Cannes,<br />
15.–18.3.<strong>2022</strong>,<br />
stand R7.E2,<br />
Espace Riviera<br />
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Take new perspectives<br />
to find new possibilities<br />
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We see the big picture and manage the details that are necessary to<br />
develop commercial real estate projects all over Central and Eastern<br />
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Positions & Opinions<br />
Real Circle<br />
#24<br />
Hospitality must<br />
be revitalized<br />
Hotel and leisure real estate. Forty selected decision makers discussed pressing issues in the hotel industry<br />
at the 24th Real Circle hosted by n IMMOunited, Erste Bank, ERSTE Immobilien KAG and ImmoFokus in the<br />
Winter Garden of the Erste Bank Campus.<br />
Authors: Patrick Baldia, Gerhard Fritz, Lisa Grüner, Amelie Miller, Rudolf Oezelt und Heimo Rollett.<br />
D<br />
omestic tourism has once again<br />
suffered massive losses in the<br />
second Corona year 20<strong>21</strong>. This is<br />
emphasized by the preliminary<br />
data from Statistics Austria. According to the<br />
statistics, overnight stays fell again by almost 19<br />
percent to 79.57 million compared to 2020. That<br />
was 48 percent less than in the year before the<br />
pandemic (2019). This means that the tourism<br />
industry has regressed by around 50 years: in<br />
1970, 79.52 million guests had booked into guesthouses,<br />
hotels and vacation apartments.<br />
ESG in the hotel and tourism industry.<br />
The hotel and tourism market works a little<br />
differently from other asset classes in terms<br />
of sustainability. Only regulations such as<br />
CO2 taxation and the taxonomy or a change<br />
in demand could bring a relevant turnaround,<br />
according to the opinion of the experts. However,<br />
this would not solve overtourism and the<br />
fundamental essence of the tourism trade.<br />
Even though everyone is currently talking<br />
about ESG, „to be honest, sustainability has not<br />
really been an issue in hotel transactions in the<br />
last two years,“ admits Melanie Waraschitz of<br />
44 ImmoFokus
Christie and Co Austria. Obviously, the technical<br />
due diligence checks these issues, but CO2<br />
neutrality or similar is not a major investment<br />
criterion, Waraschitz says. Only time will<br />
tell how much the mandatory taxonomy will<br />
change. The fact is that there is an enormous<br />
amount of money in the market. Furthermore,<br />
the large-scale bankruptcies initially expected<br />
by everyone have not occurred, partially owing<br />
to the aid provided by the government.<br />
What operators are pushing for, on the other<br />
hand, is digitization. It can contribute not only<br />
to economic sustainability but also to social<br />
sustainability, says Christian Pillwein, Beckhoff<br />
Automation. At the moment, for example,<br />
a receptionist is busy with many different<br />
systems: the parking ticket here, the room card<br />
there, and so on. If you digitize this in a sensible<br />
way, then you have more time for hospitality,<br />
for personal contact with guests - and that‘s<br />
what hospitality is all about.<br />
But what really makes a tourism property<br />
sustainable? „Any plus-energy hotel on the<br />
edge of a village is less sustainable than a refurbished<br />
apartment building in the city,“ plainly<br />
states Markus Steinböck, Head of Purchasing<br />
at 3SI. Vacation hotels are primarily located<br />
in the countryside, often in isolated locations<br />
and are usually not well connected in terms of<br />
transport and infrastructure. They have to satisfy<br />
the wishes of a wide variety of guests (for<br />
some it‘s too warm, for others too cold), and<br />
they operate energy-intensive amenities such<br />
as pools, saunas and spas. What‘s sustainable<br />
about that? Therefore,Harald Galla, a partner<br />
at the auditing and tax consulting firm Leitner-<br />
Leitner, believes that energy and its efficient<br />
use are probably the easiest commodity to<br />
calculate.<br />
Tourism is not sustainable<br />
„The very idea of tourism is not sustainable!“<br />
Boom! What Markus Steinböck says hits the<br />
nail on the head, explaining the essence of the<br />
problem and why ESG in tourism real estate<br />
is slow to catch on compared to other asset<br />
classes. There can be no exchange, no knowledge<br />
transfer, no cultural expansion without<br />
travel. And finally, it‘s about socializing itself:<br />
the fun, the recreation, the experience. What<br />
good does it do us if we consume less energy<br />
but are depressed? „Can we oblige tourism to<br />
be instructional?” wonders 3SI‘s Steinböck,<br />
“If processes are sensibly digitized,<br />
then there is more time for hospitality,<br />
for the personal touch.“<br />
Christian Pillwein,<br />
Beckhoff Automation<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
45
Positions & Opinions<br />
comparing tourism to the steel industry. The<br />
latter doesn‘t have a slim sustainability footprint<br />
either, he says, but we all agree it‘s necessary.<br />
“Any plus-energy hotel<br />
on the edge of a village<br />
is less sustainable than<br />
a refurbished apartment<br />
building in the city.“<br />
Markus Steinböck,<br />
3SI Immogroup<br />
“If people live sustainably<br />
in general, they will also<br />
consider how and where<br />
they go on vacation.“<br />
Harald Galla,<br />
LeitnerLeitner<br />
Image change as a game changer<br />
And then there is something else that needs<br />
to be considered. Vacations are also always a<br />
prestige issue. Some people like to brag about<br />
heliskiing, extraordinary destinations and<br />
staying in luxury accommodations. „Tourism<br />
caters to these instincts,“ says Steinböck. Possibly,<br />
however, there might be a significant<br />
shift right here. People can no longer afford<br />
every possible image. „Just as companies have<br />
to live and prove their values, there could also<br />
46 ImmoFokus
“Sustainability hasn‘t really<br />
been an issue in hotel<br />
transactions in the last two<br />
years.“<br />
Melanie Waraschitz,<br />
Christie und Co<br />
be a focus on sustainability among private individuals,<br />
and if guests demand sustainability or<br />
even ESG, owners and operators will respond.<br />
Harald Galla adds, „I think awareness will<br />
become more prevalent. If people live sustainably<br />
in general, they will also consider how and<br />
where they go on vacation. The price will still<br />
remain a key decision criterion nevertheless.“<br />
wants his hotel to be fully occupied,“ Galla says<br />
realistically. But for investors, soft tourism is<br />
not an option anyway; they may have shifted<br />
from city hotels to resort hotels, but hidden regions<br />
are off their radar, Waraschitz confirms.<br />
What is going to happen when the Corona recovery<br />
kicks in? Will Hallstatt and Florence be<br />
packed with people again? „I think tourism will<br />
come back the way we had it before Corona,“<br />
Christian Pillwein says, „but you can steer it<br />
through quality, through new ideas, and make<br />
it sustainable that way. I‘m not sure whether<br />
everyone must fly up to the Mehlsack in a helicopter.<br />
But if you allow it, people will do it - and<br />
some of them will be taken to the hospital right<br />
away by the next helicopter.“<br />
All that glitters is not gold<br />
2019 was a boom year for tourism in Vienna.<br />
Accordingly, many hotel projects were in<br />
planning or already under construction. The<br />
question is whether Vienna is missing out on<br />
the market?<br />
„There will be a big shifting-out because of<br />
the pandemic. Hotels whose presence we<br />
have questioned in recent years will likely<br />
disappear,“ project developer Anton Bondi<br />
de Antoni (Bondi Consulting) sums it up. „In<br />
Vienna, we can see that hotels in all categories<br />
are being developed and built, so I don‘t think<br />
we have an overcapacity, but we will see strong<br />
consolidation in the market,“ interjects Wolfgang<br />
Fessl of Reinberg und Partner. Hotel consultant<br />
Frans-Jan Soede (HAM independent<br />
hospitality & tourism advisor) is of the same<br />
opinion: „I also expect a market shakeout; hotels<br />
without unique selling features will have<br />
an even harder time in the future. However,<br />
where I see the biggest challenge is in the congress<br />
business. Vienna is a convention city;<br />
the international events won‘t come back for<br />
another four or five years when the airlines<br />
have resumed their full-scale intercontinental<br />
flights.“<br />
Huge oversupply<br />
„In the record year of 2019, the average rate<br />
in the Vienna hotel industry was around €109<br />
net. During Corona, the rate has dropped to<br />
When we think about tomorrow, a different<br />
generation with different values will decide,<br />
points out Christian Pillwein. The challenge<br />
is that vacations must be considered as a complete<br />
package, says Pillwein: „It‘s about getting<br />
there, the leisure activities, the environment,<br />
the people, etc. For me, the super-efficient<br />
property alone is of no use if the rest is not right<br />
- for example, if the ski hill is 500 meters above<br />
sea level.“<br />
Opportunity for new destinations?<br />
If sustainability, deceleration and recollection<br />
become essential vacation decision criteria,<br />
this would also offer an opportunity for previously<br />
remote or underdeveloped regions.<br />
Markus Steinböck cites Admont and Johnsbach<br />
as well as Defereggen valley as examples.<br />
„Of course, this is a double-edged sword,“ as<br />
Melanie Waraschitz puts the idea into perspective.<br />
„Yes, for many regions it‘s an opportunity,<br />
but as soon as it becomes a successful model<br />
and interesting for tourists, many people start<br />
going there.“ And the spiral begins to turn -<br />
more and more, bigger and bigger, more and<br />
more awesome. „A rational investor naturally<br />
“With every new hotel project, you<br />
have to think carefully about what the<br />
guest needs very specifically at this<br />
location.“<br />
Anton Bondi de Antoni,<br />
Bondi Immobilien Consulting<br />
“We expect online meetings to reduce<br />
business travel by up to 10 percent in<br />
the future.“<br />
Rochel Sarikov,<br />
CBRE<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
47
Positions & Opinions<br />
“The success of a hotel<br />
happens before the guest<br />
arrives; I have to get the<br />
guest to book with me in<br />
the first place.“<br />
Wolfgang Fessl,<br />
Reinberg & Partner<br />
“If the airport loses its<br />
importance, then it’s goodbye<br />
for Vienna as a tourism<br />
location.“<br />
Martin Lenikus,<br />
LENIKUS<br />
“I expect a market shakeout.<br />
Hotels without unique selling<br />
features will have an even<br />
harder time in the future.“<br />
Frans-Jan Soede,<br />
HAM independent<br />
hospitality & tourism advisor<br />
around €90,“ Rochel Sarikov (CBRE) provides<br />
the current figures. For Fessl, „... price stability<br />
primarily comes from the hotelier. We see<br />
right now that there is an enormous oversupply<br />
on the market, but the rooms still do not<br />
cost half.“ Hotelier Martin Lenikus also sees<br />
it similarly from his experience: „For us, 2019<br />
was an absolute boom year with €200 net in<br />
our two boutique hotels in the first district. But<br />
in the fall of 20<strong>21</strong>, we could also achieve similar<br />
average rates again, with only a marginally<br />
lower occupancy.“<br />
Luxury is always in demand<br />
„You have to think carefully about every new<br />
hotel project and what specifically does the<br />
guest need at this location. In our case, located<br />
on the outskirts of the city, I have to offer the<br />
guest infrastructure, a fitness center and a<br />
gastronomic variety,“ says Bondi. Sarikov sees<br />
this quite pragmatically: „Across all categories,<br />
you can say that a few undeniable aspects are<br />
definitely needed: smooth check-in, whether<br />
it‘s with a machine or with a person and trouble-free<br />
WIFI, since the guest doesn‘t want to<br />
struggle there. Furthermore, being a hotel,<br />
good sleep is quite important, on a comfortable<br />
mattress or a box spring bed, as well as a modern<br />
walk-in shower.“<br />
Martin Lenikus is pleased to report: „In the<br />
spring of <strong>2022</strong>, we will open The Leo Grand,<br />
an absolute high-end hotel, at Bauernmarkt, a<br />
stone‘s throw away from the St. Stephen‘s Cathedral.<br />
The Rosewood Hotel will open in the<br />
former Erste Bank on Graben in early summer.<br />
We see this as the future market leader in the<br />
luxury segment. Followed by Park Hyatt Hotel<br />
and the Hotel Sacher, and then we want to rank<br />
ourselves in with the Leo Grand.“<br />
„It is a fact that the luxury class will continue<br />
to exist in the hotel industry,“ Bondi agrees. „If<br />
I wake up in the top suite of Martin Lenikus‘<br />
new hotel and see St. Stephen‘s Cathedral right<br />
outside the window, I don‘t have to be a great<br />
believer to impress any partner with that.“<br />
Business travel slumps<br />
The tourist segment will bounce back very<br />
quickly, but what about business travel? Experts<br />
disagree on this question. „Business<br />
travel will continue to happen,“ Bondi said. „I<br />
already see that with my international business<br />
partners. They tell me, ‚Please give me a reason<br />
48 ImmoFokus
so I can finally travel to Vienna again.‘“ Sarikov<br />
counters, „We expect business travel to reduce<br />
by up to 10 percent in the future, because meetings<br />
that don’t absolutely need to be in person<br />
can still take place online.“<br />
Lenikus is even less optimistic: „I see the sector<br />
slumping by more like 20 to 25 percent, just<br />
like the home office will remain with us for<br />
one-third of the time.“<br />
„I believe that the success of a hotel happens<br />
long before the guest arrives, Fessl maintains.<br />
„I have to get the guest to book with me in the<br />
first place. That means I have to design my internet<br />
presence so that it‘s authentic on the one<br />
hand, but also transparent on the other hand.“<br />
Airlines face consolidation turnaround<br />
About 70 percent of guests arriving in Vienna<br />
come by plane. „I believe that there will be a<br />
much greater degree of consolidation among<br />
the airlines than among the hotels, because<br />
the airlines are very busy with their local problems,“<br />
Fessl said.<br />
Lenikus believes it is necessary to hold politicians<br />
accountable. „Now it is up to the politicians<br />
to maintain Vienna Schwechat Airport<br />
as a hub and to make sure that the conditions<br />
and the fees for the airlines are acceptable. Because<br />
if the airport loses its importance, then<br />
it’s goodbye for Vienna as a tourism location.“<br />
For Soede, Europe and the USA in particular<br />
will come back stronger from the crisis: „Other<br />
continents will take longer, if only because of<br />
the geopolitical situation.“<br />
More flexibility required<br />
In times of globalization and digitalization, the<br />
values, expectations and desires of generations<br />
are changing, and with them their travel behavior.<br />
Millennials and Gen Z in particular are<br />
traveling much more often, further afield and<br />
more flexibly than their predecessors. Have<br />
classic hotels thus become obsolete? Will hotels<br />
even have to reinvent themselves after the<br />
pandemic? No, says Patrick Adamle, mrp Hotels,<br />
because the demand regulates the supply<br />
here: „The classic concepts will continue to exist<br />
because the demand will be there, although<br />
more flexibility is required. Conversely, ten<br />
years ago, the brand diversity that exists today<br />
with large chains was unthinkable.“ In the future,<br />
new brands will continue to be developed<br />
for specific target groups and niches - and in<br />
„Due to the changing<br />
requirements and higher<br />
demands of customers,<br />
a hotelier is constantly<br />
challenged to invest and<br />
adapt to them.“<br />
Karina Schunker,<br />
EHL Wohnen<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
49
Positions & Opinions<br />
every segment,” Adamle is convinced. The<br />
pandemic was a driver for many developments,<br />
including the home office. This is a fact that the<br />
hotel industry must also consider. In practice,<br />
according to Adamle, this is taking shape in<br />
such a way that „there may no longer be the<br />
classic lobby in a hotel, but individual zones<br />
where you can work in peace and still feel part<br />
of a community.“ Staycation is a trend that has<br />
also changed the requirements for residential<br />
“Sustainability will become a<br />
booking criterion, and guests<br />
will not want to pay for it in<br />
the future, comparable to<br />
free WLAN access.“<br />
Patrick Adamle,<br />
mrp hotels<br />
„Authenticity, uniqueness<br />
and security are the<br />
central topics for the hotel<br />
industry.“<br />
Harald Hafner,<br />
HAM independent hospitality &<br />
tourism advisors<br />
„You can see from the trend toward<br />
the sharing economy that ownership<br />
has become less important to younger<br />
generations and preferences are<br />
moving more toward experiential<br />
consumption.“<br />
Wolfgang Mader,<br />
BDO<br />
50 ImmoFokus
eal estate, reports Karina Schunker, EHL<br />
Wohnen, from the field: „The hotel character is<br />
now definitely blending into housing. Today‘s<br />
real estate must be flexible in order to respond<br />
to different requirements. There are already<br />
some mixed-use properties with common areas<br />
and different uses.“<br />
“For the younger generation, their own<br />
work-life balance is more important<br />
than what a luxury hotel offers in terms<br />
of comfort and also costs.“<br />
Patricia Kuhn,<br />
Erste Bank<br />
ture booking sustainable accommodation for<br />
business trips will be part of the company policy.<br />
Patricia Kuhn, Erste Bank, points out that<br />
Generation Y will also grow older and that their<br />
demands may then change: „Young people also<br />
book Airbnb accommodation for reasons of<br />
cost, but if they can and want to afford a hotel,<br />
it will definitely have to be sustainable, especially<br />
as the issue of climate change is crucial,<br />
especially among the younger generations.“<br />
Harald Hafner, HAM independent hospitality<br />
& tourism advisors is convinced that anyone<br />
talking about the future of the hotel industry<br />
cannot ignore digitalization. „The second<br />
significant issue here is the extreme shortage<br />
of employees in the hotel industry. One way<br />
to remedy this is by making the hotel industry<br />
more attractive for employees. Another<br />
Looking into the crystal ball<br />
Concept cycles are unlikely to get any shorter,<br />
the panel agrees. But what will increasingly<br />
matter is how sustainable a hotel is. At some<br />
point, that will have the same relevance as a<br />
functioning WLAN on site, Adamle is sure of<br />
that. „Sustainability will become a booking<br />
criterion and the guest will not want to pay for<br />
it in the future, comparable to the development<br />
with the free WLAN.“ This topic will also affect<br />
the business traveler, because in the near fuway<br />
could be by relying on man and machine<br />
working together, the so-called coboting, because<br />
certain routine tasks can definitely be<br />
automated.“ Schunker agrees with Hafner, but<br />
interjects that at the end of the day, the focus<br />
should be on providing a better experience for<br />
the customer. „The benefits from digitization<br />
must also be tangible for the customer and<br />
not just for the hotelier.“ A hotel‘s hospitality<br />
concept will also play an even more important<br />
role in the near future. The pandemic has<br />
shown that a good gastronomy concept can<br />
survive even without tourism. The resort hotel<br />
industry can manage this balancing act primarily<br />
through more regionality. The different<br />
consumer behavior of the generations should<br />
not be neglected either, according to Wolfgang<br />
Mader, BDO: „You can see from the trend towards<br />
the sharing economy that possessions<br />
have become less important for the younger<br />
generations, and preferences are developing<br />
more in the direction of experience consumption.<br />
Therefore, young people will likely be<br />
more willing to invest money in travel and thus<br />
experiences, since many people no longer buy<br />
a car or save for other things.“<br />
Misplaced farewells<br />
The Corona crisis hit the Austrian hospitality<br />
market with full force. Thanks to the comprehensive<br />
government aid packages it is basically<br />
in a pretty good position, according to the<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
51
Positions & Opinions<br />
“The aid packages have<br />
in many cases prevented<br />
businesses from closing.“<br />
Gernot Ressler,<br />
EY Österreich<br />
„Distressed assets in<br />
larger numbers only<br />
exist in Southern<br />
Europe.“<br />
Daniel Jelitzka,<br />
JP Immobilien<br />
„Value adjustments, if any,<br />
could only be discerned<br />
temporarily.“<br />
Michael Buchmeier,<br />
ÖRAG<br />
overall opinion of the expert panel. Provided<br />
the Omicron wave comes to an end, they are<br />
also optimistic about a recovery in the sector.<br />
This would probably not occur before 2023,<br />
2024 for city hotels - unlike in the holiday hotel<br />
industry. The leisure hotel sector has already<br />
boomed over the past two summers and, due to<br />
this resilience, has also become an investment<br />
target for institutional investors.<br />
No wave of bankruptcies<br />
„The core problem is that many hoteliers believed<br />
that the Corona crisis would not last long<br />
and kept open - financed with equity capital -<br />
when occupancy figures did not cover costs,“<br />
explains Daniel Jelitzka (JP Immobilien). This<br />
had temporarily led to a liquidity crisis. Nevertheless,<br />
a major wave of bankruptcies is not to<br />
be expected in Austria, he said. „In many cases,<br />
the aid packages have prevented companies<br />
from closing, and quite a few were in serious<br />
trouble beforehand,“ adds Gernot Ressler (EY<br />
Austria).<br />
The generous support measures for the industry<br />
are having an effect: any impact on valuations<br />
- experts spoke of a drop of between 10<br />
and 20 percent at the height of the crisis - was<br />
only temporarily discernible, if at all. „The only<br />
thing that brought about a bit of a value adjustment<br />
were the supplementary agreements<br />
with the tenants or the rental delays granted,“<br />
says Michael Buchmeier (ÖRAG). As Herwig<br />
Peham (EHL Investment Consulting) notes, in<br />
reality there had been practically no investments<br />
in the last two years anyway that could<br />
have shown declines in valuation.<br />
New players pushing into the market<br />
„The bargains that many on the investor side,<br />
but also the operator side, expected, have de<br />
facto not occurred - not in the vacation hotel<br />
industry anyway, and not in the city hotel industry<br />
either,“ Peham continues. In any case,<br />
Karl Derfler (Adeqat Investment Services) is<br />
optimistic that despite the difficult situation in<br />
the industry, there is currently a lot of dynamic<br />
52 ImmoFokus
in the market. „Many new players, especially<br />
on the operator side, are still pushing their way<br />
into the market,“ says the investment expert.<br />
Distressed assets in more significant numbers<br />
exist only in Southern Europe, according to<br />
Jelitzka. „For the JPI Hospitality Investors Club,<br />
we have reviewed more than 700 potential<br />
projects across Europe since last fall. Of these,<br />
400 were in southern Europe and 250 in Italy<br />
alone,“ he reports. He says this is due to the<br />
lack of good concepts on the one hand. And on<br />
the other hand, revenues had been flowing into<br />
their own pockets for years, which naturally<br />
had an impact on the quality of the balance<br />
sheets. In view of the new ECB financing conditions<br />
for banks, this situation is now hitting<br />
them very hard.<br />
ESG: plenty of room up there<br />
It is also clear to the experts that there is still<br />
plenty of room for improvement in terms of<br />
ESG in the domestic hotel industry - especially<br />
when it comes to the „S“ and „G“. In any case,<br />
there is no question that there is a need for<br />
action. On the one hand, one would not get<br />
reasonable bank financing for non-ESG-compliant<br />
projects. On the other hand, at the end<br />
of the day, no investor would be found who<br />
would buy a non-taxonomy-compliant hotel at<br />
a good price.<br />
The trend toward rural vacations at home has<br />
sparked investor interest, he said. „However,<br />
classic vacation properties are characterized<br />
by small-scale financing options, so buy-to-let<br />
is too small for many institutional investors,“<br />
explains Stephan Pasquali (3SI Immogroup),<br />
dampening the euphoria somewhat.<br />
„Large investors need investor-ready operators,“<br />
agrees Franz Pasler (PK & Partner<br />
Hotel Specialists). Often, existing operating<br />
structures are too small and new permits for<br />
expansions are difficult to obtain. Many investors<br />
are spoiled by city properties. But the<br />
“The bargains that many<br />
had expected did not de<br />
facto occur.“<br />
Herwig Peham,<br />
EHL Investment Consulting<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
53
Positions & Opinions<br />
rise of the internet: „Those offers are simply<br />
clicked away.“<br />
“Many new players,<br />
especially on the operator<br />
side, are still pushing into<br />
the market.“<br />
Karl Derfler,<br />
Adeqat Investment Services<br />
resort hotel industry is much more complex,<br />
if only because of being dependent on the seasons<br />
and the diverse offerings guests expect.<br />
For Pasquali, direct booking is the megatrend<br />
of the hotel industry. „Small establishments,<br />
however, lose a large part of their profit due to<br />
the commissions of the market platforms,“ he<br />
cautions.<br />
Individualization<br />
through digitalization<br />
„Individual concepts are the opportunity for<br />
small private hotel owners,“ Marcel Weber (Arnold<br />
Immobilien) is convinced. „They in particular<br />
can develop and implement individual<br />
concepts much more easily.“ Demand for resort<br />
hotels - from both institutional and private<br />
investors - increased during the pandemic, he<br />
said. „The asking prices are exorbitantly high.<br />
The resort hotel industry is characterized by<br />
family-owned businesses. Institutional investors<br />
have a hard time getting in here. Also,<br />
because investors‘ return requirements are<br />
difficult to achieve.“<br />
„Individuality is becoming increasingly important<br />
in the city and vacation hotel industry,“<br />
agrees Daan Bakkens (Colliers International).<br />
For Franz Pasler (PK & Partner Hotel Specialists),<br />
the vacation hotel industry urgently<br />
needs a unique selling proposition (USP). The<br />
days when aging establishments could only<br />
define themselves by price are overdue to the<br />
Sustainability in tourism<br />
„The importance of sustainability and regionality<br />
is increasing among the younger generation,“<br />
says Alexander Zemina (JP Immobilien),<br />
who sees a great opportunity for smaller<br />
businesses. But institutional providers are also<br />
demanding sustainability certificates even<br />
before they buy, both from the property and<br />
the operator. „Austria could be a pioneer in the<br />
topic of sustainability in tourism and thus help<br />
shape the image of Austrian tourism internationally,“<br />
says Bakkens.<br />
Leisure and Pleasure<br />
„The pandemic has shown that you don‘t always<br />
have to work in the office,” says Zemina.<br />
So why not set up the home office in another<br />
city for two or three months at a time? Bakkens:<br />
„Leisure and Pleasure - work during the week<br />
and explore a new city on the weekend.“ There<br />
has also been a shift in thinking among investors,<br />
he says. „Fixed leases have never existed<br />
in the resort hotel industry. Risk sharing is in<br />
- increasingly now also in the city hotel industry,“<br />
Pasler explains. Year-round destinations<br />
are in particular demand, and not just among<br />
institutional investors. „Anyone investing in<br />
a hotel in Bad Ischl or Gmunden must first develop<br />
the destination.“<br />
„But with many institutional investors, the<br />
know-how is also not yet there to enter into a<br />
revenue lease,“ Bakkens interjects. „Investors<br />
don‘t want to deal with hotel operations. They<br />
don‘t want to give up fixed leases.“ Both agree,<br />
however, that hybrid leases will become more<br />
of a focus.<br />
Finally, the panel revisits the issue of buy-tolet.<br />
Zemina believes this form of financing will<br />
become more attractive for investors because<br />
second residences are no longer allowed. Franz<br />
Pasler agrees and sees buy-to-let in the resort<br />
hotel industry as a real opportunity for old<br />
hotels needing renovation. However, he also<br />
notes that unfortunately politics is not playing<br />
along here: „There are hardly any more permits<br />
to be obtained.“<br />
Digitization in the hotel industry<br />
“Direct booking is the<br />
megatrend of the hotel<br />
industry.“<br />
Stephan Pasquali,<br />
3Si Immogroup<br />
„Buy-to-let is too<br />
small for institutional<br />
investors.“<br />
Daan Bakkens,<br />
Colliers International<br />
„Individuality is<br />
becoming increasingly<br />
important in both the city<br />
hotel industry and the<br />
resort hotel industry.“<br />
Alexander Zemina,<br />
JP Immobilien<br />
54 ImmoFokus
„Institutional providers are demanding<br />
sustainability certificates from<br />
both the property and the business<br />
before they buy.“<br />
Franz Pasler,<br />
PK & Parter Hotel Specialists<br />
“Vacation hotel industry desperately<br />
needs a Unique Selling Proposition<br />
(USP) - investors are spoiled by city<br />
real estate.“<br />
Marcel Weber,<br />
Arnold Immobilien<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
55
Positions & Opinions<br />
Doesn‘t hospitality fall by the wayside with all<br />
this digitization? „We see digitization in the<br />
hotel industry as a service offering,“ says Ari<br />
Benz (Squarebytes). „Many users like to see the<br />
room in advance and then book it. We have developed<br />
an additional service tool: if customers<br />
look at the opera, they get the option to buy<br />
tickets online as a suggestion. In the upscale<br />
hotel industry, personal service is in demand<br />
despite all the digitalization.“ Stevan Tomic<br />
(Payuca) doesn‘t like the slogan „digital instead<br />
of personal.“ „Digitalization should relieve and<br />
bring some efficiency, but not reduce staff. A<br />
purely digital contact with the guest is acceptable<br />
for business trips, but for private ones the<br />
personal touch and the closeness to the region<br />
counts, even though the initial contact is digital.“<br />
„Facility management is a service that should<br />
not be seen in the hotel, but technology should<br />
work. Digitization can shorten response times<br />
and processes and raise the quality of employees<br />
because they have to deal with digital<br />
media,“ says Werner Moldaschl (Wisag). For<br />
Andreas Millonig (IMMOunited), booking.<br />
com represents a change in the industry.<br />
„Everything around booking is becoming more<br />
and more digitalized, but on site I don‘t want to<br />
talk to machines,“ said Millonig. „However, it<br />
would definitely be practical to have an easyto-use<br />
app there with which I can book a table<br />
in the hotel restaurant or pre-order an aperitif.<br />
That‘s in line with today‘s user behavior.“<br />
tests a month on their platform to see which<br />
features have the highest conversion rate,“<br />
adds Millonig. „This is even customized on a<br />
country-by-country basis.“<br />
For Tomic, it‘s clear that the small hotels and<br />
apartment providers won‘t be left behind,<br />
precisely because they present themselves on<br />
a booking platform. The only important thing<br />
is contracts that prevent the same room from<br />
being offered cheaper on a large platform than<br />
directly from the hotel. „Equality of opportunity<br />
and price is important, then the platform<br />
makes an important contribution to marketing<br />
the hotel,“ according to Millonig. An exciting<br />
thesis is emerging: „Maybe Booking.com will<br />
also operate its own hotels one day, you can‘t<br />
rule it out,“ says Millonig. „Mjam already operates<br />
its own restaurants, where it just cooks<br />
„We would welcome more digitization<br />
being built into hotels; unfortunately,<br />
builders and operators have different<br />
interests there.“<br />
Werner Moldaschl,<br />
Wisag<br />
and delivers.“ The panel sees this as a problem<br />
that would further increase the market power<br />
of the platforms because they can push search<br />
results in a targeted manner.<br />
Digitization overdose?<br />
„People have to learn to deal with digitalization<br />
and also to be unavailable,“ Benz said. „It<br />
wouldn‘t hurt us to use the cell phone 50 percent<br />
less, but we can‘t do it because we always<br />
want the news we get right away.“ Cell phonefree<br />
hotels could well be an asset, Millonig<br />
interjects.<br />
Moldaschl returns to digitization in technology.<br />
„We would welcome it if more digitization<br />
were installed in hotels, but unfortunately the<br />
installers and operators have different interests.<br />
The question is how quickly digitization<br />
Are the booking platforms taking over?<br />
„With every booking and reservation, you<br />
get a digital confirmation. That‘s what many<br />
people want,“ says Tomic. „It‘s important to<br />
use digitization to reduce the burden on the<br />
administration.“ Benz adds that it is very much<br />
necessary to differentiate by category. „At the<br />
lower end, I don‘t expect service, I just book a<br />
room.“ For Moldaschl, it is important that the<br />
menu on the booking platforms is easy to use.<br />
Runde finds it ideal to save on printed bookings<br />
and instead have everything in the e-mail.<br />
„After all, the booking platforms work so well<br />
because they bring instant solutions,“ remarks<br />
Millonig. „It‘s the shut-up-and-take-mymoney<br />
phenomenon; now I want, now I get.“<br />
The platforms‘ market power is no accident.<br />
„booking.com does 1,000 user experience A/B<br />
“It‘s exciting to<br />
use digitization to<br />
make guests feel<br />
comfortable and enhance<br />
experiences.“<br />
Andreas Millonig,<br />
IMMOunited<br />
„A purely digital<br />
contact with the guest<br />
is acceptable for a<br />
business trip, but not<br />
for private travel.“<br />
Stevan Tomic,<br />
Payuca<br />
56 ImmoFokus
in building technology will expand to the point<br />
where measurement and control elements<br />
become much more affordable and standard,<br />
not special requests,“ Moldaschl says. „It will<br />
be interesting if the usage behavior of people<br />
is optimized, for example, by analyzing movement<br />
flows.“ Millonig thinks it‘s especially<br />
important to include the guest’s emotional<br />
experience. „That‘s where it gets exciting to<br />
use digitization to create a sense of well-being<br />
and optimize experiences, which, after all, ultimately<br />
lead to a top rating.“<br />
„We see digitalization<br />
in the hotel industry as<br />
a service offering and<br />
provide an additional<br />
service tool according<br />
to the preferences of<br />
the booker.“<br />
Ari Benz,<br />
Squarebytes<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
57
Investing in Austria<br />
Office space remains<br />
resilient in times<br />
of crisis<br />
Comfortable position. While the home office is likely to remain part of our everyday working lives, the<br />
expected trend toward space reduction is not yet visible. At the same time, more space in the office can<br />
help improve the workplace situation and furthermore provide better protection from possible infection, as<br />
distancing can be more easily maintained.<br />
Author: Andreas Altstädter<br />
58 ImmoFokus
T<br />
hus, on the one hand, there are<br />
ongoing political demands for home<br />
office options, and legal foundations<br />
have also been created for this. On<br />
the other hand, for many companies it is currently<br />
not yet clear enough how the "post-Covid-19"<br />
working world will be shaped.<br />
In the first pandemic year of 2020, there have<br />
already been isolated calls for a farewell to<br />
traditional office properties. But this proved to<br />
be wrong. Today, we can likely say with a high<br />
degree of probability that the office real estate<br />
market will remain a significant factor for the<br />
commercial real estate market even after the<br />
end of the pandemic.<br />
After all, the classic office location will play an<br />
essential role in the planning of companies,<br />
even if it is currently still being postponed, to<br />
see which options and solutions could be implemented<br />
in the best possible way for companies<br />
and their employees.<br />
Vienna office market<br />
The office market in Vienna remains strained<br />
due to the current relatively low production<br />
of new space. The new space production in<br />
Vienna hit a historical low of around 45,000<br />
square meters in 2019 and then more than<br />
doubled to about 110,000 square meters in<br />
2020. This value has now dropped significantly<br />
again, with just over 70,000 square meters of<br />
newly completed space in 20<strong>21</strong>. It was only<br />
slightly above the value from 2016 of around<br />
60,000 square meters.<br />
The two most significant newly completed projects<br />
in 20<strong>21</strong> were the "Austro Tower" in the 3rd<br />
district with around 28,000 square meters and<br />
the "Tower Canettistraße" with approximately<br />
17,000 square meters in the 10th district.<br />
After successful general renovations, the "Haus<br />
am Schottentor" with around 14,000 square<br />
meters, the "Tribüne Viertel Zwei" with 5,000<br />
square meters and the "Doppio Duo" in the 9th<br />
district with around 6,000 square meters were<br />
successfully placed on the market again.<br />
On account of the statistics above, the letting<br />
performance in 20<strong>21</strong> was around 155,000<br />
square meters. This means that for the first<br />
time since 2017, less than 200,000 square<br />
meters of office space was newly leased in Vienna.<br />
The vacancy rate in Vienna continues to<br />
decline slightly and is at around 4.4 percent.<br />
With a vacancy rate of less than 2.0 percent,<br />
the inner districts of Vienna (Central Business<br />
District) are de facto fully leased. In the north<br />
of the Austrian capital, the rate remained constant<br />
at over 10 percent in some cases.<br />
Vienna: Rents remain<br />
at a “sound level”<br />
As expected, there was little change in rent<br />
prices. At around 26 Euro per square meters,<br />
prime rents were at the same level as in previous<br />
years, showing that the Vienna office<br />
market is robust and resistant in times of crisis.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
59
Investing in Austria<br />
Graz office market<br />
Like almost all office markets outside Vienna,<br />
the one in Graz is characterized by a low supply<br />
of high-quality office space, which - if available<br />
- is often significantly restricted in terms of<br />
size. Therefore, it is understandable that new<br />
real estate developments have also actively<br />
focused on office uses. The real estate developers<br />
in Graz have been following this path very<br />
consistently for a few years now. In the past<br />
year, noteworthy projects were completed with<br />
the "Quartier Hoch Zwei" with around 18,500<br />
square meters of office space on the former<br />
Reininghaus sites and the current construction<br />
phase at the "Technopark Raaba 2.”<br />
Further completions are planned for the coming<br />
year, including the "Smart Tower" in the<br />
"Smart City Graz" with an area of around 6,000<br />
square meters. The shell of the building was<br />
already constructed in 20<strong>21</strong>, and the public<br />
transport connection has also already been<br />
completed.<br />
These and other completions will mean that<br />
there will not only be sufficient office space<br />
available for newcomers or start-up companies.<br />
It also opens up avenues for possible<br />
mergers of locations, a trend already seen in<br />
Vienna (e.g., Erste Group, Unicredit or Allianz).<br />
Linz office market<br />
Hardly any notable completions took place in<br />
the Linz area in 20<strong>21</strong>. Only one project in the<br />
Salzburger Strasse with around 3,000 square<br />
meters has come onto the market.<br />
Currently, three projects are under development.<br />
Construction work has already begun on<br />
the "Techbase" project in the Zollamtstrasse. A<br />
multifunctional business infrastructure with<br />
around 37,000 square meters of usable space<br />
is being created in two construction phases<br />
on a site area of around 23,000 square meters.<br />
Completion of phase 1 is scheduled for <strong>2022</strong><br />
and phase 2 for 2024.<br />
Further project developments include the redevelopment<br />
of the former "Nestlé-Areal" and the<br />
60 ImmoFokus
| MT12-01G |<br />
Vom Konferenzraum …<br />
"Tabakfabrik", where construction work started in February 20<strong>21</strong><br />
and completion is scheduled for 2025.<br />
© Eric Ferguson / Getty Images<br />
The largest development project currently underway in Linz<br />
is the "Postcity", where around 150,000 square meters of usable<br />
space are to be created over the next few years on a site of<br />
around 40,000 square meters near the main train station. A<br />
third of this is planned as residential space, but the majority is<br />
to be used as offices, stores, restaurant space, as well as a hotel<br />
and a cinema. Construction was initially scheduled to begin in<br />
20<strong>21</strong> but has been postponed until <strong>2022</strong>. However, the originally<br />
planned share of subsidized housing does not seem to be<br />
probable. In addition, the office campus "The Office Linz " in the<br />
Hanuschstraße with an area of around 6,600 square meters is<br />
scheduled for completion at the end of <strong>2022</strong>.<br />
Due to the still low supply – resulting from the still low completion<br />
rates - prime office rents in Linz have nevertheless remained<br />
unchanged compared with the previous year at around 12.50 Euro<br />
per square meter.<br />
Salzburg office market<br />
Following suit of 20<strong>21</strong>, there were hardly any project developments<br />
in Salzburg in 20<strong>21</strong>. The only exception being "Wissenspark Urstein"<br />
where an exciting solution has emerged, as buyers have been<br />
found for the last two construction sites. In addition, the "Part-F" of<br />
the Park is to be expanded this year by Techno-Z. The relatively low<br />
activity level on the Salzburg office market has also led to a slight<br />
increase in prime rents to around 14 Euro per square meter.<br />
Innsbruck office market<br />
With the "TWI Innsbruck" in Eduard-Bodem-Gasse, around 8,000<br />
square meters of new space was created in 20<strong>21</strong> and is already 100<br />
percent occupied. The completion of "PEMA 3" at the train station<br />
is expected for the current year <strong>2022</strong>. This will provide further<br />
high-quality space in a central location.<br />
In the west of the city, the WEST PARK Innsbruck is being built<br />
with functional use with approximately 10,000 square meters.<br />
Completion is scheduled for 2024.<br />
A larger project still is currently under construction to the west<br />
of Innsbruck. This is the Kematen Business and Technology Park<br />
(GTP), with a total of around 65,000 square meters. The first construction<br />
phase, which was completed in 20<strong>21</strong>, includes an office<br />
complex of five floors with approximately 2,500 square meters, a<br />
business hotel with an area of approximately 3,700 square meters,<br />
a restaurant, service and workshop areas with a total of approximately<br />
1,100 square meters and logistics areas with approximately<br />
2,500 square meters.<br />
… bis zur Gebäudeautomation<br />
Eine Plattform für Medientechnik,<br />
Gebäudeautomation und<br />
Entertainment: PC-based Control<br />
Medientechnik neu gedacht: Als Spezialist für PC-basierte Steuerungssysteme<br />
ermöglicht es Beckhoff mit einem umfassenden und industrieerprobten<br />
Automatisierungsbaukasten, Multimedia, Gebäudeautomation<br />
sowie Entertainmentkonzepte vernetzt und integriert umzusetzen.<br />
Mit der modularen Steuerungssoftware TwinCAT und direkter Cloudund<br />
IoT-Anbindung werden alle Gewerke von der A/V-Technik über die<br />
Gebäudeautomation bis hin zu Digital Signage Control, Device Management<br />
und Condition Monitoring, auf einer Plattform kombiniert. Hinzu<br />
kommt die maximale Skalierbarkeit aller Komponenten und die Unterstützung<br />
aller gängigen Kommunikationsstandards. So schafft Beckhoff die<br />
Grundlage für neue mediale und architektonische Erlebniswelten.<br />
Scannen und die<br />
Beckhoff-Highlights<br />
für die AV- und<br />
Medientechnik<br />
entdecken<br />
IoT<br />
© Cultura / Getty Images<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
61
Investing in Austria<br />
A closer look<br />
Submarkets Vienna. I n the fourth quarter of 20<strong>21</strong> take-up on the Vienna office market totaled 54,872 square<br />
metre – around 88 per cent more than in the third quarter of 20<strong>21</strong> and 9 per cent more than in the fourth<br />
quarter of 2020.<br />
A<br />
ccording to the Vienna Research<br />
Forum, the largest take-up was<br />
the new lease of 16,000 square<br />
metre in the Inner Districts - CBD<br />
submarket. This corresponds to approx. 29 per<br />
cent of the total take-up on the Vienna office<br />
market in the fourth quarter. Another large-scale<br />
letting was also registered in the Inner Districts<br />
- CBD submarket with 4,300 square metre. A<br />
total of 50 lettings were recorded in the fourth<br />
quarter – 11 more than in the previous quarter<br />
and 6 less than in 4th quarter 2020.<br />
A closer look at take-up based on type of rental<br />
shows that 93 percent account for new leases<br />
and 7 per cent for pre-lets.<br />
Vacancy rate increased to 4.6%<br />
In the fourth quarter of 20<strong>21</strong>, the vacancy rate<br />
in the VRF portfolio of modern office buildings<br />
in Vienna increased to 4.6 per cent, which is 0.5<br />
per centage points more than in the previous<br />
quarter and 0.4 percentage points more than in<br />
the same period of the previous year (Q4 2020).<br />
The submarket with the lowest vacancy rate<br />
was Central Station with 2.1 per cent and the<br />
submarket with the highest rate was Airportcity<br />
Vienna with 14.8 per cent. The VRF only<br />
takes into account modern office space built<br />
since 1990 or completely renovated and office<br />
space which meets certain quality criteria such<br />
as indoor climate, elevators or IT standards.<br />
For the first time in September 2016, the VRF<br />
collected the total stock of modern office<br />
space for Vienna which it updated at the end<br />
of the fourth quar¬ter of 20<strong>21</strong>: it amounts to<br />
5,978,989 square metre, of which 62 per cent<br />
belong to class A and 38 per cent to class B real<br />
estate according to VRF standard. In the fourth<br />
quarter, the project Austro Tower in the Erdberg<br />
- St. Marx (East) submarket was included<br />
in the stock.<br />
Analysis Submarkets Vienna Q4/20<strong>21</strong><br />
Submarket name<br />
active properties<br />
total space<br />
active properties total<br />
space class A<br />
active properties total<br />
space class B<br />
vacancy rate<br />
in %<br />
Inner Districts - CBD 2,198,222 1,011,871 1,184,560 3.0 % 30,278<br />
Donaucity 537,736 287,634 250,102 6.2% 0<br />
Prater/Lasallestraße 752,993 651,605 101,388 5.7% 9,330<br />
Erdberg - St. Marx (East) 712,843 606,671 106,163 4.0% 1,960<br />
Central Station 516,3<strong>21</strong> 418,605 97,716 2.1% 1,735<br />
Wienerberg (South) 454,627 304,345 150,282 8.8% 3,158<br />
North 444,192 225,317 204,075 5.2% 1,599<br />
West 255,117 143,733 111,384 5.8% 6,526<br />
Airport City Vienna 106,947 70,147 36,800 14.8% 286<br />
Total 5,978,989 3,719,928 2,242,470 4.6% 54,872<br />
take-up<br />
62 ImmoFokus
Rentals 20<strong>21</strong> (selected examples)<br />
Property Size sqm Address<br />
Österreichische Akademie der Wissenschaften 16,000 1010, Georg-Coch-Platz 2<br />
Allgemeine Unfallversicherungsanstalt (AUVA) 9,100 1100, myhive am Wienerberg<br />
Wiener ArbeitnehmerInnen Förderungsfonds 7,400 1020, Quartier Lassalle<br />
Arbeitsmarktservice (AMS) 5,500 1100, Favoritenstraße 73<br />
Red Bull Media House GmbH 5,240 1020, Rund Vier, Stella-Klein-Löw-Weg 13<br />
LeitnerLeitnerWirtschaftsprüfer Steuerberater 4,300 1040, Ensemble Schwarzenbergplatz<br />
bpv Hügel Rechtsanwälte GmbH 2,800 1010, Schreyvogelgasse 2<br />
Infoscore Austria GmbH 2,300 1100, QBC 1+2<br />
• Take-up in the fourth quarter at approx.<br />
54,900 square metre<br />
• Largest rental accounts for about 29 percent<br />
of the total take-up<br />
• Vacancy rate amounts to 4.6 per cent<br />
• Take-up in 2019 totaled 136,406 square metre<br />
Karriere.at 2,300 1020, Austria Campus<br />
Weidinger & Partner Wirtschaftstraining 2,200 1030, Franzosengraben 1<br />
Quelle: EHL Market Research | Q2 20<strong>21</strong><br />
Completions 20<strong>21</strong><br />
Property Size sqm Address<br />
Austro Tower 28,000 1030, Schnirchgasse 17<br />
Tower Canettistrasse 17,000 1100, Canettistraße 5<br />
Haus am Schottentor * 14,500 1010, Schottengasse 6-8<br />
Doppio Due * 6,000 1090, Peregringasse 2-4<br />
Tribüne Viertel Zwei * 5,200 1020, Stella-Klein-Löw-Weg 8<br />
Operngasse 6 * 2,000 1010, Operngasse<br />
Quartier Lassalle 2* 53,000 1020, Lassallestraße 5<br />
Quartier Lassalle 1* 24,000 1020, Lassallestraße 1<br />
Quelle: EHL Market Research | Q2 20<strong>21</strong><br />
Vienna Research Forum<br />
The Vienna Research Forum initiator is<br />
the Association for quality promotion in<br />
the real estate sector (ImmQu) with the<br />
leading Vienna commercial real estate<br />
companies, CBRE, Colliers International,<br />
Immobilienmakler, EHL Immobilien, ORAG<br />
Immobilien Vermittlung, OTTO Immobilien<br />
and Spiegelfeld International. They provide<br />
anonymously and independently of each<br />
other key parameters, such as take-up, vacancy<br />
rates, completions, to the VRF database.<br />
The data is then published quarterly<br />
to provide a comparative analysis which<br />
helps investors and companies.<br />
Completions <strong>2022</strong><br />
Property Size sqm Address<br />
Twenty One/Innovation Hub 14,800 10<strong>21</strong>, Siemensstraße 87-89<br />
Das Lebendige Haus * 9,000 1010, Postgasse 8-10<br />
Technologiezentrum Seestadt, TZ 3 4,800 1220, Christine-Touaillon-Str. 11<br />
Lukoil- Headquarter* 3,800 1040, Schwarzenbergplatz<br />
Schreyvogelgasse 2* 2,500 1010, Schreyvogelgasse 2<br />
Operngasse 6 * 2,000 1010, Operngasse<br />
Quartier Lassalle 2* 53,000 1020, Lassallestraße 5<br />
Quartier Lassalle 1* 24,000 1020, Lassallestraße 1<br />
Quelle: EHL Market Research | Q2 20<strong>21</strong><br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
63
Logistics / Industrial<br />
Market in Vienna<br />
I<br />
n the second half of 20<strong>21</strong>, take-up of<br />
logistics, production and industrial<br />
space in Vienna and the surrounding<br />
area amounted to around 92,695 sqm.<br />
This is what the results of the Vienna Research<br />
Forum Logistics/Industrial (VRF-LI) show<br />
after evaluating the current key data. The VRF<br />
only considers logistics premises that meet<br />
certain quality criteria such as hall height,<br />
shunting area and distance from the motorway.<br />
The highest quality standards are met by 49<br />
percent of the classified buildings, so-called<br />
logistics class A objects, while 34 percent are<br />
qualified as class B and 17 Percent as class C.<br />
For the production and industrial premises,<br />
all properties that are currently used for this<br />
purpose and meet certain minimum criteria<br />
such as hall size were included. According to<br />
the Vienna Research Forum Logistics/Industrial,<br />
the largest take-up comprised 23,170<br />
sqm in the submarket Vienna Surrounding<br />
North. It corresponds to around 25 percent<br />
of the space take-up on the logistics and<br />
industrial market in the second half of 20<strong>21</strong>.<br />
Another major take-up was registered in the<br />
Vienna Surrounding East submarket with 11,800<br />
sqm. Looking at the take-up of space by<br />
type of use, 92 percent of the space is<br />
accounted for by logistics space and<br />
8 percent by production space.<br />
For the first time in November<br />
2019, the VRF Logistics/<br />
Industrial collected the<br />
total stock of logistics,<br />
production and industrial<br />
space in Vienna and the<br />
surrounding area. It has been<br />
updated at the end of the second half<br />
of 20<strong>21</strong> and amounts to 5,530,802 sqm, of<br />
which 52 Percent belong to production and<br />
industrial space and 48 percent to logistics<br />
space.<br />
Vienna West<br />
About the Vienna Research Forum<br />
Vienna South<br />
Vienna Surr. South<br />
Vienna Surr. North<br />
Vienna North<br />
Vienna East<br />
Vienna Surr. East<br />
The Vienna Research Forum initiator is the Association for quality promotion in the real estate<br />
sector (ImmQu) with the leading Vienna commercial real estate companies, CBRE, Colliers International,<br />
Immobilienmakler GmbH, EHL Immobilien, ORAG Immobilien Vermittlung, Otto Immobilien<br />
and Spiegelfeld International. They provide anonymously and independently of each other key<br />
parameters, such as take-up, vacancy rates, completions, to the VRF database. The data is then<br />
published quarterly to provide a comparative analysis which helps investors and companies.<br />
Logistics Industrial Market Vienna: Submarkt second half of 20<strong>21</strong><br />
Submarket name<br />
Objects<br />
Total area<br />
in sqm<br />
Logistics<br />
Objects<br />
Total area in<br />
sqm<br />
Logistics<br />
Objects<br />
Total area in<br />
sqm Class A<br />
Logistics<br />
Objects<br />
Total area in<br />
sqm Class B<br />
Logistics<br />
Objects<br />
Total area in<br />
sqm Class C<br />
Production<br />
/ Industrial<br />
Objects Total<br />
area in sqm<br />
Total<br />
space<br />
take-up<br />
H2 20<strong>21</strong><br />
Vienna North 728,326 247,163 50,000 123,139 74,024 481,163 2,690<br />
Vienna East 699,452 274,822 39,770 223,562 11,490 424,630 6,300<br />
Vienna South 1,050,127 483,186 163,605 137,600 181,981 566,941 4,600<br />
Vienna West 45,123 <strong>21</strong>,823 0 7,500 14,323 23,300 0<br />
Vienna Surr. North 1,243,683 441,060 322,060 70,100 48,900 802,623 35,220<br />
Vienna Surr. East 680,204 558,004 420,204 70,800 67,000 123,000 43,885<br />
Vienna Surr. South 1,083,087 632,880 313,601 279,807 39,472 450,207 0<br />
Total 5,530,802 2,658,938 1,309,240 912,508 437,190 2,871,864 92,695<br />
64 ImmoFokus
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Positions & Opinions<br />
ImmoFokus asks …<br />
… and real estate experts answer. u. Negative interest rates, investment pressure, high construction prices,<br />
weakening economy – is it game over for real estate - or is the industry still riding high like in the last few<br />
years? We asked the local experts.gt.<br />
Questions:<br />
1<br />
How optimistic or pessimistic are you going into the new year? Which<br />
asset class will be the favorite for investors?<br />
3<br />
Will environmental and<br />
pandemic risks be reflected<br />
more in the form of higher risk<br />
premiums? Do you anticipate<br />
rising interest rates?<br />
4<br />
What three issues will have the<br />
most significant impact on the<br />
real estate industry in <strong>2022</strong>?<br />
Where do you see the key<br />
challenges? What might be the<br />
possible solutions?<br />
2<br />
For many years, the<br />
price development of<br />
real estate investments<br />
had only one direction:<br />
upwards. What do ESG<br />
and COVID-19 mean for<br />
real estate valuation?<br />
5<br />
What are the plans and<br />
goals for your company in<br />
<strong>2022</strong>?<br />
68 ImmoFokus
1<br />
We are optimistic about <strong>2022</strong>: Our pipeline is well filled with attractive investments. The<br />
outlook for the residential asset class, especially in metropolitan areas, will remain excellent.<br />
Most other real estate segments, such as office, logistics and healthcare, will also continue to<br />
perform well in the coming year from a current perspective. For investors who want to invest<br />
somewhat countercyclically, hotels and retail will represent attractive opportunities in the<br />
coming year. All in all, we expect another exciting real estate year.<br />
Markus Arnold,<br />
Arnold Immobilien<br />
2<br />
The topics of sustainability and ESG are increasingly standard and play an ever more significant<br />
role in investment decisions - especially for institutional investors. In commercial real estate,<br />
these issues have already fully arrived. Hardly any property today can do without a green<br />
building label or similar. In our view, the same development will occur in the residential sector.<br />
3<br />
We expect interest rates to rise only slightly, if at all. But we do see a new assessment of<br />
risks emerging that could lead to an investment-specific reshaping of the risk premium.<br />
Therefore, it is quite possible that within the individual asset classes there will be greater<br />
differences than before, for example between the core and non-core segments.<br />
4<br />
We assume that climate targets and Big Data in particular will change the industry<br />
in the long term. In addition, in our view, mobility concepts around the location of a<br />
property will become increasingly important.<br />
5<br />
For us, the signs continue to point to<br />
expansion. In addition to Austria, we are<br />
currently active in Germany, Spain, Italy,<br />
Portugal, the Czech Republic, Slovakia<br />
and Hungary. In <strong>2022</strong>, we will be moving<br />
in the direction of Northern Europe. We<br />
will soon be setting up operations in the<br />
Netherlands and Sweden. Our objective<br />
is to be the largest private investment<br />
brokerage company and to offer our<br />
customers attractive investment properties<br />
throughout Europe.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
69
Positions & Opinions<br />
1<br />
I remain optimistic because demand for housing is still high. In many ways, this is also due to the<br />
pandemic, which has increased the desire for more space among many people. Many are now also willing<br />
to realize a dream home in the countryside outside the big cities because, with the increased use of home<br />
offices, there is less dread in commuting.<br />
In addition, the pandemic has increased the desire for security, not only among private individuals but<br />
also among investors. Therefore, residential construction remains attractive, certainly also due to a lack<br />
of alternatives. Currently, there are too few commercial properties on the market; demand would be<br />
exceptionally high for logistics centers and offices, while the retail sector, apart from grocery stores, is<br />
weakening. This is also undoubtedly a direct effect of the pandemic.<br />
Gerhild Bensch-König,<br />
Raiffeisen WohnBau<br />
2<br />
The price increases of the last years were mainly caused by rising prices for land and construction costs. Now, ESG and the topic of sustainable<br />
construction and investment are additional price drivers.<br />
ESG is already impacting on real estate financing; for institutional investors and funds, in particular, compliance with sustainability criteria and<br />
thus the certification of buildings is essential. Private investors and home buyers are also paying more and more attention to this. They are quite<br />
willing to pay a higher price for it, since sustainable construction methods are also associated with higher costs.<br />
Covid-19 has influenced or changed the use of all real estate - from private residences to office workplaces, commercial real estate of all types, and<br />
public sector real estate - in some cases significantly. The market environment for specific properties is certainly more uncertain because of Covid-19<br />
than before the pandemic. Consider, for example, the domestic urban hotel industry, which is now struggling with enormous revenue losses for the<br />
second winter in a row.<br />
3<br />
The market will determine whether even higher risk premiums can be factored<br />
in. I don‘t see that happening across all asset classes. This year, despite very high<br />
inflation, I don‘t expect interest rates to rise. But now that the experts at the<br />
international central banks disagree, we‘ll see what <strong>2022</strong> brings.<br />
4<br />
Sustainability and ESG are the issues of the day. In connection with this, we will<br />
have to deal more with the refurbishment or conversion of existing properties<br />
in the future. Above all, there is resource conservation in construction and<br />
operation, efficient use of energy, etc.<br />
Here, too, we see the impact of the pandemic, as the use of office space will change.<br />
Companies are rethinking their space strategies; home office and remote work<br />
will change the way people work in the long term and directly impact on the real<br />
estate market.<br />
Another issue that remains important, especially for cities, is densification.<br />
This could make property acquisition a little easier and help to ensure that less<br />
additional space is built up.<br />
5<br />
With our entire team at Raiffeisen WohnBau, we<br />
will do everything we can to continue to do well<br />
through this unexpectedly long crisis.<br />
It is important to us that our high-quality residential<br />
buildings are places of retreat for our residents,<br />
offering space for different lifestyles - from singles<br />
to couples to families with children. In addition,<br />
we are developing more and more projects outside<br />
Vienna that, thanks to good public transport links<br />
and exclusive green spaces, offer completely new<br />
prospects, especially for young families.<br />
With our very diverse commercial portfolio in<br />
Austria and abroad, optimal yet partnership-based<br />
management is very important to us. Ultimately,<br />
the economic success of a portfolio property is also<br />
the prerequisite for selling it profitably at the right<br />
time.<br />
70 ImmoFokus
1<br />
We continue to see strong momentum in the market and are therefore very confident going into the new<br />
year. We were already able to successfully launch several notable transaction processes in the previous year,<br />
which will be completed this year.<br />
In addition to residential properties, which continue to be identified by investors as a safe haven, commercial<br />
properties with strong, crisis-resistant anchor tenants are also highly attractive. The investment spectrum<br />
in the hotel segment is broadening. Vacation hotels are now also included in the purchase profiles of some<br />
investors. However, against the backdrop of new framework conditions, it is essential to take a closer look<br />
at all investments and identify reliable investment cases.<br />
2<br />
3<br />
Karl Derfler,<br />
ADEQAT Investment Services<br />
The topic of ESG has reached all institutional investors<br />
and has become an indispensable purchase criterion for<br />
investments. Therefore, this topic is omnipresent for us<br />
in every project assessment and transaction management.<br />
We make recommendations for high-quality building certifications<br />
to make investments placeable. Due to the EU<br />
taxonomy regulation, this affects not only investors but<br />
also financiers and developers. ESG compliance increases<br />
the usability of the property. This is reflected in many areas<br />
such as a higher market rent, a higher occupancy rate or<br />
lower management costs. Sustainable real estate will have<br />
a better risk-return profile in the future and will significantly<br />
influence the capitalization rate and thus on prices.<br />
ESG criteria will be an essential factor for companies in<br />
terms of resilience, competitiveness and growth opportunities<br />
in the future.<br />
The Corona crisis and the economic consequences of the<br />
pandemic have shifted priorities within the three ESG criteria.<br />
For a long time, ecology and environment were the<br />
dominant pillars due to climate change. Currently, however,<br />
social issues are coming back into focus, as many people<br />
have been affected in many ways by Corona lockdowns.<br />
In real estate and portfolio valuation, risk diversification<br />
plays an even more significant role given the Covid situation.<br />
The utilization concepts of buildings and the sector<br />
mix of tenants will have to be examined more closely and<br />
adapted if necessary.<br />
We don‘t see higher risk premiums in terms of risk surcharges. You could say<br />
that in the environmental field, the need for building certification already makes<br />
it an investment in sustainability. This may resemble a premium initially, but it<br />
is amortized through lower management costs over the life cycle of a building.<br />
Risks, the origins of which were first revealed by the COVID-19 pandemic, are<br />
difficult to assess in the long term. The current trend of increased use of home<br />
offices became a necessity, but its impact was managed well by the real estate<br />
industry. Whether this trend will remain or whether user requirements will<br />
change in the long term, cannot be answered with certainty at the moment.<br />
Regarding interest rates, we expect Europe to follow the developments on the<br />
American market and anticipate a moderate increase.<br />
4<br />
The high level of competition and the increased pressure on institutional<br />
investors to perform will counteract a low level of product selection. Influenced<br />
by the pandemic, many institutional investors have become more risk-averse<br />
again and are therefore focusing even more on core real estate, which is already<br />
a scarce commodity.<br />
Due to the still large amounts of cheap financing, more and more opportunistic<br />
buyers are also entering the market. The question here is whether the<br />
expectations of these buyers can be met.<br />
Available space for project developers will become increasingly difficult to<br />
find in the future. Post-densification options such as additions, expansions,<br />
repurposing, reallocation, and replacement could facilitate the creation of<br />
additional needed space without sealing more undeveloped land. Densification<br />
can strengthen the sustainability aspect as well as the social aspect and resource<br />
efficiency.<br />
5<br />
As an investment broker for large-volume projects, we see transaction support in particular as an essential contribution to the favorable<br />
completion of a project. For this reason, we want to continue to ensure a trustworthy, smooth and quality-assured transaction process this<br />
year, which gives both customers and partners a lasting feeling of security and the highest level of satisfaction.<br />
We are looking forward to further exciting projects and a cooperative partnership with our business associates this year.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
71
Positions & Opinions<br />
1<br />
I think <strong>2022</strong> will be a good year. After almost two years of lockdown, uncertainties and other<br />
challenges, we have learned to deal with the situation.<br />
Real estate continues to be the investors’ favorite, and I believe new office concepts combined<br />
with environmental and social sustainability impulses might surprise us this year. Housing<br />
will continue to be „trendy“ for investors; however, with yields continuing to fall, I believe it<br />
will be challenging for many institutional investors in the final decision.<br />
2<br />
In the short term, there will be an upward push for (truly) ESG-compliant properties and<br />
a downward trend for properties that do not at least meet the ESG criteria. In my view,<br />
Covid-19 will not have a direct long-term impact on property valuations, and Retail<br />
and Hospitality will also return to normal. However, the indirect impact should not be<br />
ignored: more open attitudes towards home offices, new travel habits and appreciation<br />
of the office or home. These will bring changes not yet immediately foreseeable, with<br />
flexible and modern concepts again being the frontrunners.<br />
4<br />
Permits: The last two years have been marked by delays and shortages, which have also<br />
affected the area of permits, causing many developers‘ projects to be pushed back.<br />
Social change (labor market/home office): If you are looking for employees yourself<br />
and notice the groans of HR departments desperately looking for employees, you<br />
realize that this issue should not be underestimated.<br />
Advantages due to lack of investment opportunities: One positive aspect for the real<br />
estate sector at the moment is certainly the fact that there are few or no alternatives<br />
on the investor side. Stock markets, which are more volatile than ever and no longer<br />
follow a clear trend, in addition to the incidents caused by Silicon Valley moguls, wildeyed<br />
politicians and stuck container ships, as well as the lack of alternatives, continue<br />
to make concrete gold an investors’ darling.<br />
3<br />
If one can trust the economists in Europe, I<br />
suspect that the sideways trend will continue<br />
for a while longer. Regarding of risk premiums,<br />
I also believe that ESG/environment will be<br />
added to the due diligence in the future, and<br />
again, the frontrunners will emerge as the<br />
winners. I don‘t think anyone will be able to<br />
predict the next pandemic. Still, I do believe<br />
that any closure scenarios - which no one<br />
would have anticipated pre-Covid - will factor<br />
into the contracts.<br />
5<br />
Dominik Erne,<br />
Bondi Immobilien Consulting<br />
Our focus in the new year remains on the<br />
holistic development of TwentyOne. The<br />
Innovation Hub will be ready in the summer.<br />
With the tenants moving in, we can then<br />
really prove that our concept and our idea<br />
of the overall responsible development of<br />
a small urban development area in the <strong>21</strong>st<br />
district were the right move. Our team will<br />
grow as it did last year and is developing very<br />
positively; I am happy to have such a great<br />
team. Furthermore, we are still looking for<br />
new and exciting commercial developments in<br />
Vienna and the surrounding area. We want to<br />
make a statement, especially in the direction of<br />
sustainable real estate projects.<br />
72 ImmoFokus
1<br />
I am an optimistic person - despite Omikron<br />
- very optimistic. The vaccinations and<br />
increasing immunizations will have their<br />
effect, so the pandemic should also fade<br />
into the background during <strong>2022</strong>. Housing<br />
will probably remain the investors‘ favorite<br />
asset class.<br />
3<br />
Karin Fuhrmann,<br />
TPA Steuerberatung<br />
Environmental and pandemic risks will certainly be reflected in risk premiums. The<br />
question of rising interest rates is difficult to answer. Since inflation has recently<br />
increased substantially and is far from the two percent target, it cannot be ruled<br />
out that interest rates will rise moderately if the ECB does not get inflation under<br />
control in some other way.<br />
2<br />
COVID-19 has undoubtedly led to one or the<br />
other lower valuation in 2020. One could<br />
see this especially in the valuation results of<br />
listed companies. Since many companies have<br />
managed the pandemic quite well so far thanks<br />
to government subsidies, this effect will probably<br />
be less pronounced in the 20<strong>21</strong> balance sheets<br />
or already eliminated altogether. ESG will<br />
put older properties in particular under some<br />
pressure in the valuations, as the environmental<br />
requirements are not as well represented as in the<br />
case of new buildings, which were already able to<br />
pay particular attention to climate neutrality in<br />
the planning stages. In addition, correspondingly<br />
„green“ properties will be in greater demand from<br />
institutional investors, which will have a positive<br />
impact on value and valuation.<br />
4<br />
Climate neutrality and resource conservation are certainly topics that have recently<br />
moved decidedly into focus and will remain significant. Real estate developers have<br />
already adapted quite well to this. I expect to see a further surge in innovation here.<br />
The question of the workplace after the pandemic will likely still occupy us in <strong>2022</strong> and<br />
demand flexible solutions from employers.<br />
5<br />
Since the topics of ESG and renewable energies<br />
are very close to my heart, I will actively<br />
work to ensure that TPA expands its range of<br />
consulting services even further and that small<br />
and medium-sized companies will also be able<br />
to address this issue at a reasonable cost.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
73
Positions & Opinions<br />
1<br />
Very optimistic, and this is not based just on a „gut feeling“, but on facts and market<br />
analyses. Despite the high production of new space, we are consistently able to utilize<br />
our projects quite quickly and on good terms - and as far as we can see, many of our<br />
competitors also manage to do so. Every additional month we are forced to struggle<br />
with Covid-19, homes that meet our own standards are taking on a higher status with<br />
people and that‘s reflected in demand, both quantitatively and qualitatively. So it‘s very<br />
obvious to me that housing will continue to be the top favorite among investors in <strong>2022</strong>.<br />
Andreas Holler,<br />
Buwog Group<br />
2<br />
As far as BUWOG is concerned, I see ESG in a very positive light: sustainability has been<br />
a vital issue for us for years, and the vast majority of what ESG requires in residential<br />
construction is therefore already met by our development projects anyway. If what we<br />
already do voluntarily becomes an externally given standard, it tends to improve our<br />
competitive situation.<br />
Covid-19 may negatively affect in those submarkets where there is a risk of usage<br />
restrictions and possibly rent defaults as a result, for example in retail properties. But this<br />
is hardly conceivable in the case of residential properties.<br />
3<br />
I don‘t see any rationale for a change in risk assessment In the housing market.<br />
Interest rates will rise at some point if inflation remains high, but the current<br />
situation with negative real interest rates will not change for quite a long time.<br />
4<br />
I would like to answer this for the residential<br />
sector: Sustainability, cost management,<br />
securing suitable land - and as always, the<br />
issues are interrelated. We need to realize<br />
even more sustainable projects - key words:<br />
resource conservation, sealing of the soil<br />
surface, social sustainability. Nevertheless,<br />
construction costs must not be allowed to<br />
rise; on the contrary, we must succeed in<br />
bringing construction prices, which have<br />
at times gotten out of hand, back down to a<br />
reasonable level. And we must ensure that<br />
we can continue to build sufficient new<br />
housing in the coming years. Otherwise,<br />
today’s balanced market will quickly turn<br />
into a structural undersupply, as we had<br />
just a few years ago.<br />
5<br />
We currently have a whole range of extraordinary projects under construction, MARINA<br />
TOWER, HELIO Tower, Inside XIX, Kennedy Garden, etc. This is an enormous challenge<br />
and if we continue to make such successful progress on all of them in accordance with<br />
the plans, then we will have every reason to be proud and satisfied.<br />
74 ImmoFokus
1<br />
As everyone in the industry knows, I have unlimited and unbridled optimism. The last two years have already shown what innovations that were<br />
actually long overdue can be developed. That‘s why we don‘t want to focus on specific asset classes but on innovations, such as the city of the<br />
future, a Moroccan park landscape in Favoriten, apartments for musicians in D-City, IT-Lab, etc.<br />
2<br />
Already 15 years ago, we were the first<br />
developers in Austria to achieve a LEED<br />
Platinum certification for their buildings.<br />
In the meantime, it has become state-ofthe-art<br />
and ESG criteria are now being<br />
requested more and more frequently. In<br />
recent years, realized that the pandemic<br />
has made home offices and single<br />
workplaces unavoidable and that openplan<br />
offices are infection hotspots par<br />
excellence.<br />
Wolfdieter Jarisch,<br />
S+B Gruppe<br />
3<br />
In the long term - the next five to ten years<br />
-- interest rates are expected to rise.<br />
4<br />
Courage to innovate, courage to protect the<br />
environment and courage to adopt a new<br />
approach to life balance.<br />
5<br />
DANUBEFLATS: the residential building - also known as Component 2 - will reach roof completion in the next few months. In the case of<br />
the residential tower, one of the most challenging technical tasks - the superstructure of the Danube embankment highway (Rucksack) - will<br />
be completed. DC 3, the largest and highest student building in Austria, is already being handed over on an ongoing basis. Likewise, the DC<br />
Residential will be completed. Civil engineering work on DC 2 will begin in the spring, and construction of the education campus will also start<br />
this year. At Höchstädtplatz, construction work on two residential complexes could start before Christmas. Furthermore, at Laxenburger Strasse<br />
151 six residential units will be built between the open space and garden concept designed by André Heller. The dedication procedures start for<br />
the City of the Future and the high-rise building near the gasometer (Taille) as well as the high-rise building at the foot of Triester Strasse. For the<br />
80-meter high-rise on Dresdner Strasse and Laxenburger Strasse 2, the groundbreaking ceremony will take place in the summer.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
75
Positions & Opinions<br />
1<br />
We are definitely optimistic going into the new year! Especially for our asset class of real estate<br />
it will definitely be a positive <strong>2022</strong>.<br />
The focus will be on neighborhood developments and the crisis-resistant asset classes of<br />
residential and local amenities. But here, too, global change must be taken into account.<br />
Changes in nature and society must be used as an opportunity to implement new concepts<br />
that lead to sustainable added value through sensitive analysis and early reaction. Investors‘<br />
favorite is and remains the long-term return.<br />
Michael Klement,<br />
United Benefits Holding<br />
3<br />
2<br />
The consideration of ESG criteria and sustainable investing have been steadily gaining in<br />
importance for years. The European Union has now massively stepped up the pace with<br />
its latest regulations on taxonomy and disclosure requirements. Higher investments for<br />
more ESG and thus more certainty of long-term value creation is assumed by investors,<br />
which is why ESG has assumed an absolutely key role in the strategic orientation of real<br />
estate companies.<br />
COVID-19 has driven the overall shift in thinking as a catalyst. Hopefully, the impact of<br />
the pandemic on all of us will soon subside. Where I work, how I live, how I travel or how<br />
I structure my week - everything that applied at the beginning of 2020 has been repositioned.<br />
In order to respond to the new needs of tenants, we have to take some risks in<br />
product development and pay special attention to social aspects in addition to the environment<br />
as early as the planning stage. Conclusive concepts and the willingness to invest<br />
a little more for the community will be rewarded in the long term.<br />
The pandemic and the challenges that followed<br />
have led to an additional evaluation of some<br />
factors. For example, contractual clauses -<br />
previously regarded as a legal drudgery - are<br />
suddenly being scrutinized more closely,<br />
tenant credit standing has become more<br />
important, and some sectors have lost a great<br />
deal of their appeal. Similarly, new needs, such<br />
as home office options in the general area of a<br />
residential building, pose new challenges in<br />
project development.<br />
We expect interest rates to rise moderately over<br />
the next 18 to 36 months. However, the crucial<br />
question here is which interest rate level will be<br />
sustainable.<br />
This means: ESG and COVID-19 will continue to fuel price development! ESG is an investment<br />
in the future that can and should cost money. I am convinced that this is a unique<br />
opportunity to make a decent contribution to the future with our segment - which is<br />
about time!<br />
76 ImmoFokus
4<br />
Topic number 1 is and remains ESG. The requirements for upgrading<br />
in the area of digitalization will be particularly challenging. Anyone<br />
who doesn‘t stay up to date here won‘t be able to compete much longer.<br />
Also here to stay are the far-reaching effects introducing of home office<br />
options. Here, the real estate industry has to adapt to a multitude of<br />
changing needs: Concrete demands for residential space are just as affected<br />
as the need for office space, demands on the hotel industry, logistics<br />
and transport networks. In the area of development in particular,<br />
we are trying to respond to current needs through extensive analysis<br />
and rapid reaction.<br />
A change in thinking is also needed in connection with financing<br />
options. Rising interest rates, an increase in the equity ratio for owneroccupied<br />
homes and the rising prices of construction and land demand<br />
action not only from the federal and state governments. Investors are<br />
also required to take greater account of social aspects. For this reason,<br />
not only environmental issues but also social criteria are given high<br />
priority in our developments and investments. For example, in one of<br />
our housing funds, we have a clear guideline to offer 30 percent of the<br />
apartments for a total rent of less than €800 per month!<br />
5<br />
At the end of 2020, we bundled our three subsidiaries<br />
INVESTER United Benefits, EKAZENT Management and<br />
WEALTHCORE Investment Management, under the<br />
umbrella of United Benefits HOLDING.<br />
Our concept is to be a complete-service provider along the<br />
entire value chain of a property. Especially in dealing with<br />
ESG challenges, we benefit greatly from our extensive<br />
know-how from development to investment management.<br />
This is where I see our particular strength, which we will<br />
undoubtedly expand in order to reinforce our pioneering<br />
position in the ESG segment for institutional investors.<br />
In the area of asset management, we are currently working<br />
with our subsidiary EKAZENT, in cooperation with a large<br />
number of domestic industry colleagues, to develop the<br />
asset management service profile for Austria.<br />
Also in <strong>2022</strong>, we will extend our expansion into Germany<br />
in the areas of development and investment management,<br />
which was already started in 20<strong>21</strong>. Two funds with a strong<br />
allocation to Germany have already been launched, and<br />
more are to follow.<br />
We also have big plans in Vienna. After completing<br />
more than 1,000 apartments in 20<strong>21</strong>, we expect to start<br />
construction on time for nearly 800 apartments in <strong>2022</strong>.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
77
Positions & Opinions<br />
1<br />
I am basically optimistic about the year, despite possible unforeseen challenges. The<br />
market continues to be highly competitive, and it is not getting easier for any of us.<br />
Residential real estate will continue to be investors‘ favorite. Demand for profitable<br />
retirement housing properties is consistently high. The famous rock-solid savings<br />
book has gained significant popularity. In the meantime, the location and quality of the<br />
property are often more important than the return on investment.<br />
2<br />
COVID-19 in particular has led to a huge upswing in demand. Due to the interest rate<br />
situation, real estate has gained significantly in popularity. I think this will continue.<br />
However, COVID-19 has changed the directions on the type of property. Open space is now<br />
unavoidable, even in the investment housing sector. The ESG issue plays an important<br />
role for any developer and is reflected for the customer in sustainable amenities in the<br />
building and the apartment, as well as increased social offerings in the residential estates.<br />
4<br />
Marija Marjanovic,<br />
Wiener Privatbank<br />
3<br />
Environmental and pandemic risks have already been priced into market rates for some<br />
time, but I fear that sooner or later, we will see a rise in interest rates. Real yields fell<br />
further into negative territory globally last year. This is a situation that will probably be<br />
with us for a little longer because it is precisely the high level of government debt that is<br />
currently preventing the central banks from loosening their interest rate restrictions in<br />
order to be able to counteract inflation at least somewhat. However, the line of reasoning<br />
of the respective monetary authorities is already beginning to differ. While in the US the<br />
free market is to be met via upcoming interest rate hikes, the ECB is keeping to its course<br />
of supply tightening. The reason for this lies in the different expectations regarding<br />
the duration of the rise in inflation. A rise in interest rates would entail a whole slew of<br />
consequences, such as higher borrowing costs, higher interest rates on other forms of<br />
investment, and much more.<br />
Current topics will continue to be<br />
sustainability in construction and also<br />
the possible tokenization of real estate.<br />
The topic of sustainability has been with<br />
us for some time now and will become<br />
significantly more important in the<br />
coming years. Many investors already<br />
expect sustainable construction from the<br />
developer and otherwise do not take up the<br />
property if this is not given. Tokenization<br />
opens up a new sales field that can appeal<br />
to a broader mass. A great opportunity,<br />
even if not possible for every company.<br />
5<br />
Wiener Privatbank SE is a dynamic specialist bank with a clear focus on real estate and capital market expertise. We are a leader in innovative<br />
real estate products (direct investments and bonds), sell a large number of investment apartments per year and have a high level of expertise in<br />
the residential real estate market in the greater Vienna area. This gives our customers access to one of the most stable and interesting forms of<br />
investment on the market.<br />
My goal is to cooperate increasingly with property developers. Our services range from project financing, brokerage and asset management to<br />
property management – everything under one roof. Once we have found a suitable project, we take care of selling the apartments, as investment<br />
apartments or for owner-occupiers among our customers and cooperation partners. As a bank, we are also able to issue a buyer‘s guarantee for<br />
residential projects.<br />
78 ImmoFokus
1<br />
Rather optimistically. The cut-throat competition will remain, but customers<br />
have recently shown more willingness to place orders and are also willing to<br />
change. However, a crucial challenge in facility management will remain the<br />
shortage of skilled workers. In terms of asset classes, logistics and commercial<br />
real estate, which can be adapted to the ESG Directive and the Taxonomy<br />
Regulation, will probably be important. In addition, hotel properties are<br />
currently somewhat cheaper, but when tourism resumes during the year, this<br />
sector will also pick up again.<br />
3<br />
2<br />
There is no general answer to this question. On the one<br />
hand, it depends on the asset class, and on the other<br />
hand, it depends on the age of the property. Older<br />
properties in particular will struggle with ESG, either<br />
due to modernization costs or negative price trends.<br />
ESG-compliant properties, on the other hand, will see<br />
a boost. In the case of COVID, further developments<br />
remain to be seen and here, above all, which trends will<br />
be maintained in the long term. Building users have<br />
become more open and flexible, so flexible concepts will<br />
also be needed.<br />
At present, interest rates are not expected<br />
to rise significantly. Experts also expect<br />
interest rates to remain unchanged.<br />
Accordingly, the trend in real estate<br />
prices will continue. As far as risk<br />
premiums are concerned, a distinction<br />
between the different asset classes has<br />
to be made. However, awareness has<br />
certainly increased as a result of the<br />
pandemic, particularly concerning<br />
closures, lockdowns and other forms<br />
of restricted use of real estate with loss<br />
of revenue. This is an area where many<br />
people will take better precautions in the<br />
future.<br />
5<br />
Werner Moldaschl,<br />
WISAG<br />
4<br />
The ESG Directive and Taxonomy<br />
Regulation, upheavals in the office<br />
market and office structures due to<br />
the COVID-19 pandemic, and the trend<br />
toward decentralized workplaces such<br />
as home and shared offices. All three<br />
issues play together and will require joint<br />
solutions. The key here is to keep a close<br />
eye on further developments and act<br />
accordingly.<br />
WISAG is taking on the challenges posed by ESG, the Taxonomy Regulation and the COVID-19<br />
pandemic and is actively seeking solutions with various partners and experts. Digitalization<br />
and ecology canare increasing the importance of highly trained employees. WISAG therefore<br />
offers training and further education, provides its employees with comprehensive briefings<br />
and thus ensures high-quality services in technology and processing. As a result, we as a<br />
company can counteract the shortage of skilled workers to a certain extent.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
79
Positions & Opinions<br />
1<br />
We are optimistic about the new year. Even though Corona will continue to accompany us, we<br />
are all constantly learning how to deal with the situation a little better. From an investor‘s point<br />
of view, residential real estate will continue to be the focus of attention in <strong>2022</strong> as an extremely<br />
attractive form of investment. Demand remains high - from both buyers and investors. The<br />
future belongs to smart and climate-friendly buildings with high functionality and open<br />
spaces. The topic of office real estate will also be exciting with regard to the examination of<br />
new office concepts. Changing working environments do not need less space, but rather a<br />
different type of space. However, one thing is evident here as well - attractive office space with<br />
optimal accessibility and good infrastructure will prevail on the market.<br />
Ewald Müller,<br />
ALUKÖNIGSTAHL<br />
2<br />
The binding criteria and classifications created by the ESG factors or the related taxonomy<br />
regulation are highly relevant for the real estate industry. Long-term sustainable investments<br />
will become more transparent as a result, which in our view will in any case not lead to a<br />
reduction in investments. This is because lifecycle costs and the associated economic benefits<br />
can only be seen over a more extended observation period and through high sustainability<br />
standards. With the exception of top locations, the real estate standard will hardly change as a<br />
result and will remain at today‘s high level.<br />
3<br />
Real estate is still considered stable in value and an investment with relatively<br />
high returns in times of low interest rates. There’s no doubt about that despite<br />
the Corona pandemic. The interest rate situation will change only moderately in<br />
the foreseeable future. Central to this are the indicated interest rate increases for<br />
<strong>2022</strong> by the US Federal Reserve and further monetary policy steps by the ECB. Last<br />
but not least, we should also keep an eye on the planned tightening of the lending<br />
criteria for new loans by the Financial Market Authority from the middle of the<br />
year.<br />
4<br />
The reduction of CO2 emissions, the use of renewable energies and alternative<br />
office concepts are relevant topics that will not only shape the real estate industry<br />
this year. The order of the day is resource conservation, and here the industry<br />
definitely has some catching up to do in many areas. At Alukönigstahl, we have<br />
long focused on future-oriented products and services that comply with the<br />
sustainability principles in every respect. For our Schüco aluminum systems, for<br />
example, we rely on the Cradle-to-Cradle approach as a trendsetting sign against<br />
a resource-intensive linear economy. Furthermore, in addition to long service<br />
life, the materials such as aluminum and steel also have an exceptionally high<br />
recycling potential - in some cases up to 100 percent.<br />
5<br />
We are concentrating on achieving a<br />
targeted balance - between steps that are<br />
currently necessary and further measures<br />
that are relevant for the future. We<br />
remain true to our three cornerstones of<br />
smart, intelligent and safe construction to<br />
achieve this. In addition, we want to devote<br />
ourselves above all to digitization, which is<br />
already supporting us all immensely today.<br />
We consciously focus on sustainable<br />
innovation and work with future-oriented<br />
technologies in the areas of design, health,<br />
safety and energy efficiency - from smart<br />
planning, construction and operation to<br />
highly functional facades and window<br />
solutions with integrated ventilation<br />
systems or barrier-free windows, doors<br />
and sliding doors. We achieve this with<br />
a carefully selected team of employees<br />
with comprehensive know-how. So, we<br />
are looking forward to the year <strong>2022</strong> with<br />
confidence.<br />
80 ImmoFokus
1<br />
We are starting the new year with cautious optimism. The pandemic will continue to occupy<br />
us at least until the end of this year, especially the recovery process from the lockdowns and<br />
with it the issue of rent or leasehold interest for commercial premises. The ranking among<br />
investors continues to be led by the residential asset class. The pandemic has even reinforced<br />
this top position.<br />
2<br />
Alfred Nemetschke,<br />
Nemetschke Huber Koloseus<br />
Rechtsanwälte<br />
The influence of ESG will increase and thus change the valuation of a property in one direction<br />
or the other, depending on the asset class. However, sustainability and ESG will particularly<br />
challenge older and existing properties, as carbon neutrality was not an issue decades ago. Retail<br />
properties in particular, will feel the adverse effects of Covid-19.<br />
3<br />
I don‘t see interest rates rising significantly in the near future - at least not in the<br />
EU. But we can assume that developments will be very differentiated between the<br />
various asset classes and that risk premiums will be adjusted accordingly.<br />
4<br />
Of course, we will be concerned with all the pandemic-relevant topics<br />
such as rent or leasehold rent reductions for commercial premises,<br />
home office and flexible working conditions, as well as climate<br />
neutrality and ESG.<br />
5<br />
Since the beginning of the pandemic,<br />
one focus of the firm, which will remain<br />
relevant in <strong>2022</strong>, is to be the subject of<br />
rent or leasehold rent abatement of<br />
business premises. Another focus is to<br />
increase collaboration with mediators.<br />
Covid-19 has clearly shown us that<br />
quick and efficient cooperation<br />
between lawyers and mediators<br />
provides sound solutions and that<br />
clients benefit from this.<br />
The other focus continues to be on real<br />
estate investments and developments.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
81
Positions & Opinions<br />
1<br />
I am convinced that <strong>2022</strong> will be a positive year for<br />
residential construction! The demand for high-quality<br />
condominiums is very high and rental apartments as<br />
an investment form are also in great demand. Due to<br />
the complex pandemic-related difficulties in our work,<br />
production is lagging behind leading to rising prices. At<br />
the moment, there is no countermovement in sight.<br />
2<br />
The effects of both ESG and COVID-19 have increased<br />
costs. This affects new construction as well as existing<br />
properties. If the investor does not take the costs into<br />
account, he is threatened with a worse valuation of his<br />
property. However, the high level of excess demand is<br />
expected to have a balancing effect on this situation.<br />
Roland Pichler,<br />
Die Wohnkompanie<br />
3<br />
We assume that our residential construction<br />
projects will continue to<br />
perform very well in assessing risk<br />
factors and, therefore, will not incur<br />
any additional financing costs. This<br />
will probably not apply to construction<br />
projects that do not meet the increased<br />
requirements.<br />
4<br />
The Corona pandemic with all its challenges has somewhat distracted us from<br />
the issue of land scarcity, however, this issue is absolutely vacant and has even<br />
been further exacerbated by the pandemic. Achieving sustainability goals and<br />
CO2 neutrality in the EU, coupled with ESG regulations will influence our daily<br />
work more and more.<br />
5<br />
Nearly 500 apartments are currently under construction<br />
and will be completed this year. We have a well-filled<br />
pipeline of residential projects to develop and bring into<br />
construction. Due to the positive market situation, we<br />
will continue to pursue our expansion course. In doing<br />
so, we will focus primarily on our core market of Vienna,<br />
but will also invest in selected cities in the provinces.<br />
The key challenge is to implement new or changed framework conditions in a<br />
period of constantly rising costs as well as raw material shortages.<br />
Many measures could bring improvements. From optimizing the working conditions<br />
or possibilities of the official services to extensive subsidy possibilities<br />
outside of subsidized housing construction to price-regulating interventions in<br />
the area of construction raw materials, the range of possibilities extends.<br />
Die zentrale Herausforderung ist das Umsetzen von neuen bzw. geänderten<br />
Rahmenbedingungen in einer Periode mit stetig steigenden Kosten sowie Rohstoffknappheit.<br />
Es könnten viele Maßnahmen Verbesserungen bringen. Von der Optimierung<br />
der Arbeitsbedingungen bzw. -möglichkeiten der behördlichen Dienststellen<br />
über umfangreiche Förderungsmöglichkeiten außerhalb des geförderten<br />
Wohnbaus bis hin zu preisregulierenden Eingriffen im Bereich der Baurohstoffe<br />
reicht die Palette der Möglichkeiten.<br />
82 ImmoFokus
1<br />
After an outstanding investment year in 20<strong>21</strong>, we<br />
are extremely confident about <strong>2022</strong>. Due to the high<br />
number of transactions in the process, which we expect<br />
to finalize in the first half of <strong>2022</strong>, we also anticipate<br />
solid transaction activity and volume in the coming year.<br />
Residential and logistics properties will be highly in<br />
demand, with enormous demand far exceeding supply<br />
in the logistics sector in particular.<br />
2<br />
The leading causes of high real estate prices, namely low interest rates, poorly<br />
performing alternative investments and rising inflation will remain with<br />
us in the coming year. The pandemic is a challenge for the entire economy.<br />
However, except for a few segments, such as city hotels and supra-regional<br />
shopping centers, the real estate sector was comparatively minimally affected<br />
by the impact. In some cases, it was even able to benefit from the development<br />
in the areas that promise long-term secure cash flows or the „last-mile logistics“<br />
sector, which serve the changed consumer habits. The EU taxonomy or the even<br />
stronger focus on ESG will make top properties even more in demand. This will<br />
also lead to older, non-sustainable properties being increasingly upgraded or<br />
retrofitted to meet ESG requirements and thus create an increase in their value.<br />
3<br />
Franz Pöltl,<br />
EHL Investment Consulting<br />
Primarily, we expect that those properties built to be ESG compliant<br />
will increase in value compared to non-sustainable properties.<br />
Factoring in the cost of bringing existing properties into ESGcompliant<br />
condition will likely become standard in valuations over<br />
time. We see no sign of any rate hikes at the moment, so that yields<br />
will remain under pressure.<br />
4<br />
We expect that efforts to overcome the pandemic, the general establishment of<br />
ESG standards, and the price dynamics of land and construction costs will be<br />
the key challenges for the real estate industry.<br />
In terms of overcoming the pandemic, the real estate industry will have to rely<br />
mainly on government action. In terms of moving toward a sustainable real<br />
estate industry, the path is at least mapped out. In the coming year, the search<br />
for land at prices that still allow affordable housing will remain a real challenge.<br />
Faster reclassification of land and construction procedures would certainly be<br />
helpful here. Construction costs are also trending in a direction that does not<br />
yet indicate a weakening of the price momentum for real estate prices.<br />
5<br />
After having had a very good year in 20<strong>21</strong> and being able<br />
to start the new year with a well-filled project pipeline,<br />
we want to continue last year‘s good performance<br />
seamlessly and expand EHL Investment Consulting‘s<br />
leading position in the investment market in <strong>2022</strong>. In<br />
doing so, our focus is not on a specific asset class, but<br />
rather we want to be the predestined contact partner for<br />
our customers in all areas, starting with the acquisition<br />
of the property through to the sale of the finished<br />
investment product.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
83
Positions & Opinions<br />
1<br />
Isabella Reinberg,<br />
Reinberg & Partner<br />
Immobilienberatung<br />
The year <strong>2022</strong> will hardly differ from the previous year in some circumstances. Nevertheless,<br />
I am optimistic that our handling of it will be easier. Residential real estate will achieve<br />
comparable sales prices and be accompanied by similarly high market demand. Nevertheless,<br />
it can be observed that the market is no longer willing to buy „everything.” Small apartments<br />
will sell well as usual - regardless of their sometimes questionable design. Larger investments,<br />
such as purchasing a single-family home, will increasingly be considered according to your<br />
qualitative criteria and will remain on the market for a long time. Office properties are<br />
experiencing a change in their forms and uses, which is also due to COVID-19-related home<br />
office solutions. The demand for large-scale offices will probably decrease.<br />
2<br />
COVID-19 has led to a worldwide upheaval and change in the office work<br />
environment. As a result of the pandemic and the recommended measures,<br />
everyday office work has been changed from the traditional office desk to the<br />
home office. This is accompanied by the change of lifestyles between the office<br />
world and the home environment. Office and residential lifestyles will change,<br />
but demand, commerce and transactions will continue as usual.<br />
ESG has taken root in all sectors and is becoming an essential part of everyday<br />
activity. Companies will be restricted in allowing agreements to the extent that<br />
they can only award contracts to ESG-compliant companies. As there are no ESG<br />
standards or guidelines yet, there is still a great need for development.<br />
4<br />
3<br />
Yes, most definitely. There are two pillars in financing -<br />
one is default and the second is a loss in default. Default<br />
is where annuities are not serviced over a period of time.<br />
This can be due to an inability to pay, but it can also be<br />
due to unwillingness.<br />
Irrespective of this, a payment default is a default that<br />
must be documented based the Basel criteria and means<br />
a risk premium in the refinancing of the banks.<br />
Although a default does not yet mean a loss, it<br />
nevertheless represents an increased risk. The pandemic<br />
may, of course, make payments more difficult, which<br />
may lead to defaults. In any case, default is an increased<br />
risk in the area of bank refinancing, which inevitably has<br />
an impact on financing.<br />
As in any industry, ESG will become an immense driving force. In terms of the<br />
real estate industry, I see real estate financing as an increasingly complex and<br />
hurdling issue. The questions it raises: Will interest rates stay this low? Will<br />
prices continue to rise? And what will happen to construction prices or the<br />
supply of raw materials? Will there be shortages in the procurement market?<br />
5<br />
We will strengthen our internationality and network with international partners. In doing so,<br />
we will build more substantial differentiation from the competition and expand employee<br />
competencies. Our internal training center will focus on interdisciplinarity, encompassing the<br />
pillars of technology, law, economics and ecology, because our team is of great importance<br />
to us. Furthermore, we will concentrate on labor market security, respectful interaction and<br />
supportive structures as a collaborative concept, as well as fighting the pandemic whose end<br />
can be inferred with social distancing.<br />
84 ImmoFokus
1<br />
The year <strong>2022</strong> begins with the obvious challenges that have already occupied us in the past<br />
year. COVID-19 has changed our working, shopping and living habits, or rather, already<br />
apparent trends have been massively accelerated as a result. This change affects almost all<br />
asset classes, although the impact varies depending on the type of use. The residential asset<br />
class has proven to be very reliable and stable even before the pandemic, so demand for core<br />
real estate will continue to increase.<br />
In the medium and long term, a shift in investor interests and a change in the risk profile of<br />
selected asset classes can be expected.<br />
Michael Widschwendter,<br />
Arealis<br />
2<br />
Evaluating means comparing. Real estate appraisers merely reflect the market<br />
situation or the willingness to pay the current market price, but they do not<br />
influence it. More concretely, this means mapping what is happening in the<br />
market and not anticipating that green buildings „must be worth more“ and this<br />
„fact“ should be priced in as evidence even without further market data, or that<br />
energy inefficient buildings „must“ have a discount. The „Green Premium“ or a<br />
„Grey Discount“ is not a value in its own right, but an integral part of the market<br />
value of a property.<br />
Initial impacts associated with COVID-19 are evident in projected revenues<br />
through rent reductions, co-defaults, and deferrals granted, which in turn impact<br />
cash flow.<br />
4<br />
3<br />
With the current changes, especially the issue<br />
around ESG as well as the ongoing pandemic, a new<br />
assessment of risk is emerging that will lead to an<br />
investment-specific reshaping of the risk premium.<br />
While the source of monetary policy will not stop<br />
overnight, increased volatility in capital flows can<br />
be expected given the continued historically and<br />
cyclically low interest rate environment. Increased<br />
inflation is currently putting pressure on central<br />
banks to tighten their monetary policy, which will<br />
lead to a „slight“ increase in the general interest<br />
rate level. Interest rates are currently still very low<br />
by historical standards and no massive changes are<br />
expected.<br />
1 The issue of COVID-19 will continue to occupy us beyond <strong>2022</strong>.<br />
Mutations of the virus, necessary measures as well as political<br />
decisions related to the pandemic create additional uncertainty in<br />
society and the markets. The challenges here lie primarily in the fight<br />
against the pandemic to which we can all contribute through a high<br />
vaccination rate.<br />
2. „ESG is here to stay!“ The issues around sustainability as well as<br />
decarbonization have begun and will keep us intensively busy for a<br />
very long time. The regulatory innovations affect all sub-sectors of the<br />
real estate industry and its entire life and investment cycle. Essential<br />
success factors here are a corresponding mindset in the company,<br />
exchange in the industry, and training and continuing education<br />
measures for the entire workforce.<br />
3. Last but not least, digitization is a central topic that will influence<br />
the industry in the coming year. In the future, new technologies, the<br />
breaking down of data silos - especially in connection with ESG, new<br />
job profiles and a digital mindset will be needed to meet the challenges<br />
in the real estate industry in the years to come.<br />
5<br />
As an asset and property management, Arealis will actively<br />
incorporate the topic of sustainability into its corporate culture<br />
and policy in the future. In addition to fulfilling the regulatory<br />
requirements (e.g., EU Taxonomy and Disclosure Regulation)<br />
on the part of the legislator, the focus here will also be on the<br />
consistent derivation to the business model of the clients and<br />
the working methods of the organization within Arealis. In<br />
doing so, we will pursue a consistent approach that economic<br />
success and responsible action are not mutually exclusive but<br />
rather mutually dependent - „Manage to Green“. Even if the<br />
topic of ESG is still very „E-heavy“ at the moment and climate<br />
targets are the focus, for us the „S“ and „G“ are also part of our<br />
overall strategy.<br />
Digitization and automation of processes is a crucial success<br />
factor for us. In doing so, we use and expand the technology to<br />
promote employee collaboration and work flexibility.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
85
Positions & Opinions<br />
1<br />
The easing of the pandemic and the return to (new) normality will lead to a greater sense of<br />
optimism and positive change in society. We are currently experiencing a massive reshaping<br />
of working environments and consumer behavior. These trends result in high demand for<br />
modern, technically perfectly equipped office space and new logistics space in close proximity<br />
to urban centers.<br />
2<br />
I am convinced that ESG and COVID-19 will have an impact on real estate<br />
valuation. In what form and to what extent this will be implemented remains<br />
to be seen.<br />
4<br />
3<br />
Numerous economic factors in recent months indicate an end<br />
to the long period of low interest rates. I therefore consider an<br />
increase in interest rates to be very likely. A sustained factoring<br />
of environmental risks is due on the one hand to climate change<br />
and its adverse effects, and on the other hand, to future political<br />
conditions.<br />
The Covid-19 pandemic has already led to adjustments in leases.<br />
Whether this justifies higher risk premiums remains to be<br />
negotiated by market participants.<br />
I see the implementation of ESG, a rapid digital transformation of the real<br />
estate industry and the creation of more affordable housing as key challenges.<br />
Satisfactory approaches to solutions will only be achieved by involving all<br />
stakeholders.<br />
5<br />
Wolfgang Scheibenpflug,<br />
Flughafen Wien<br />
We are consistently continuing the<br />
development of Vienna AirportCity<br />
this year. One particular focus is<br />
on expanding the range of services<br />
for our tenants. For example, we<br />
are going into full operation with<br />
our Conference - CoWorkingcenter<br />
in Office Park 4. As part of our<br />
e-mobility strategy, we are also<br />
building a large fast-charging<br />
station that will be available to all<br />
tenants and passengers.<br />
86 ImmoFokus
1<br />
Personally, I am not quite as optimistic, since recently we have seen how<br />
quickly everything can change completely.<br />
The residential asset class will continue to dominate the market, but offices<br />
as well as logistics are still high in demand. Hotels are also finding their way<br />
back.<br />
According to the 19th edition of Emerging Trends (joint study by PWC and<br />
the Urban Land Institute), there will be a significant increase in alternative<br />
areas such as new energy infrastructure projects and life science projects,<br />
but also self-storage projects are on the rise.<br />
Jasmin Soravia,<br />
Kollitsch & Soravia Immobilien<br />
2<br />
There is no way around the topic of ESG! Although the focus is still very much on<br />
the „E,” in <strong>2022</strong> we will also have to pay more and more attention to the „S“ and<br />
the „G,” especially the „S“ is underestimated by many.<br />
Non-sustainable projects will really have problems in the future, both from<br />
an investor’s and a bank‘s point of view. <strong>2022</strong> will be a real gamechanger,<br />
especially for existing properties; many properties will be subject to a great<br />
deal of refurbishment pressure. Those will cost money and also requires a lot of<br />
manpower.<br />
4<br />
The consistent introduction and implementation of ESG strategies will<br />
continue to be seen as a key value driver, as well as the digitization push that<br />
the industry has received. However, I believe there is still a lot of room for<br />
improvement.<br />
The industry will also be challenged to establish new utilization concepts in the<br />
NEW NORMAL. It can be a pioneer here in terms of how people will live and<br />
work in the future.<br />
3<br />
Can the market afford rising interest rates?<br />
Inflation fears are driving many investors into real<br />
estate. Yields are already over 3 percent these days,<br />
especially in the residential sector.<br />
Nevertheless, the financial sector plays a crucial<br />
role in the transition to a sustainable economy - this<br />
concerns both institutional investors and banks.<br />
In any case, sustainable products/projects will<br />
receive lower-cost financing. Institutional investors<br />
will have to meet their clients‘ increased demand<br />
for green investments and will thus pay „better“<br />
returns than for non-sustainable projects. „Harmful“<br />
projects that do not meet ESG criteria will face<br />
real problems in the future, which will have to be<br />
urgently addressed.<br />
The shortage of skilled workers will also dominate the year <strong>2022</strong> - the battle for<br />
the best minds will continue. #<br />
Affordable housing will also be a major issue dominating the future.<br />
5<br />
20<strong>21</strong> was our first full year as Kollitsch & Soravia, which started really well with five new acquisitions, and we want to continue this in <strong>2022</strong>.<br />
In the Kollitsch Group, we are very much concerned with the topics of sustainability, digitalization and innovation - we will continue to place a<br />
great deal of focus on these in <strong>2022</strong>, mainly because otherwise, we will no longer be competitive.<br />
The main focus of the Kollitsch Group is on housing, which will remain our main asset class. Here we attach great importance to high quality and<br />
try to broaden and diversify our position.<br />
The Kollitsch Group is one of the most attractive employers in Carinthia. We have strongly engaged in integrative teams as well as „new<br />
leadership.” Social commitment and social responsibility are essential to us and will also receive close attention in <strong>2022</strong>.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
87
Positions & Opinions<br />
1<br />
We started the new year very optimistically, which is also reflected in our growth plans<br />
for <strong>2022</strong>. For example, our portfolio is set to grow from 5 billion Euros to around 6 billion<br />
Euros - primarily through acquisitions and in-house developments in the area of our<br />
innovative and flexible office brand myhive, as well as through the further expansion<br />
of our Europe-wide market leadership with our STOP SHOP retail parks. We have been<br />
focusing on this cost-efficient and crisis-resistant asset class of retail parks with excellent<br />
returns for many years by recognizing the potential early on. In this respect, we are not<br />
surprised that retail parks have recently become the favorite of many investors. But<br />
demand for high-quality, service-oriented and flexible office properties will also remain<br />
high.<br />
The recent war and the resulting sanctions are clearly a risk for the general economic<br />
development and significant revisions cannot be ruled out.<br />
Dietmar Reindl,<br />
Immofinanz<br />
2<br />
It is evident in all markets that sustainability issues are becoming increasingly important to investors, tenants<br />
and the general public - and that is a good thing. Against this background, we have been addressing sustainable<br />
trends in our portfolio strategy for years. This is also reflected in very specific real estate projects, such constructing<br />
sustainable and affordable apartments in our retail parks and the expansion of our successful office brand myhive<br />
to include an „urban garden“ concept. Green facades, terrace landscapes, gardens and green oases in the offices<br />
create a feel-good atmosphere and an attractive microclimate for tenants. With our net-zero emissions strategy, we<br />
are making another important contribution to the fight against climate change. By 2040, we will be emission-free<br />
along the entire value chain. In this way, we are taking an important step in the climate turnaround and securing<br />
competitive advantages for ourselves in the market.<br />
Looking at our portfolio, we saw pandemic-related devaluations in 2020, mainly due to slightly higher market<br />
yields in the retail segment. However, this was offset by sustained positive valuation effects in the office segment,<br />
especially in Germany. In the past fiscal year 20<strong>21</strong>, we could recover a good part of these devaluations by the third<br />
quarter. If there are no aggressive new variants of the virus, I no longer expect any significant impact. Recently,<br />
there has also been more movement in the hotel segment, which was hit harder by the pandemic.<br />
88 ImmoFokus
3<br />
An ESG audit of real estate is now an essential part of larger<br />
purchasing processes. Although it remains difficult to<br />
quantify the premiums that can be achieved for sustainable<br />
properties, a credible ESG policy is becoming a go/no-go<br />
factor for investors, tenants and other stakeholders. As<br />
part of our sustainable portfolio strategy, we see upside<br />
potential for properties with high ESG standards in the<br />
medium to long term.<br />
Regarding interest rate development, we are now also<br />
preparing for interest rate increases in Europe before the<br />
end of the year. IMMOFINANZ is optimally positioned<br />
both for the current environment and for a domain with<br />
potentially rising interest rates. For example, roughly<br />
90% of our financial liabilities are secured against rising<br />
interest rates. As a large European real estate group with<br />
an investment-grade rating, we also have access to very<br />
attractive financing conditions.<br />
4<br />
ESG: Here, we see the implementation of our net-zero<br />
emissions strategy and thus also the assurance of<br />
environmentally relevant and social criteria for the<br />
entire portfolio as a thoroughly major challenge. At the<br />
same time, this is also an important competitive factor<br />
and future opportunity for the coming years.<br />
Economic growth and geopolitical development:<br />
At present, the forecasts for economic growth in<br />
the individual countries of Central Europe for <strong>2022</strong><br />
and 2023 are quite positive. However, against the<br />
background of the currently emerging armed conflicts<br />
and possible effects on gas supplies for Europe, there<br />
could be significant downward revisions.<br />
Interest rate developments: A faster tightening of<br />
monetary policy would have an impact on financial<br />
assets and tangible assets or investors‘ yield<br />
expectations. In addition, financing costs are the most<br />
important cost factor for real estate companies. It<br />
then depends on how solid and robust the individual<br />
companies are positioned here.<br />
5<br />
Our goal is to continue implementing the value-enhancing<br />
growth of our Group and come out of this pandemic with new<br />
strength and vitality. Our success is based on our clear portfolio<br />
strategy with crisis-resistant brands and flexible and innovative<br />
offerings. Our robust financial position with reliable cash<br />
flows and investment grade rating gives us stability, financial<br />
strength, and the scope for future sustainable growth.<br />
<strong>MIPIM</strong> | <strong>2022</strong><br />
89
Positions & Opinions<br />
1<br />
Residential real estate was one of the most sought-after asset classes in 20<strong>21</strong>, which is why<br />
we saw a significant increase in demand and were able to successfully broker around 1,500<br />
apartments. This trend will continue in <strong>2022</strong>. We expect an absolute high of completed<br />
apartments this year, most of which will be rented out. The high demand for rental apartments<br />
will thus be met by a diverse supply. In the owner-occupied sector, we continue to expect a<br />
considerable surplus in demand.<br />
2<br />
Compared to other investment opportunities, investments in residential real<br />
estate are stable even during the pandemic and therefore particularly popular.<br />
Low interest rates coupled with rising inflation are further fueling demand.<br />
Increased construction and land costs offer no scope for price consolidation.<br />
The topic of ESG is also omnipresent. We expect ESG-compliant residential real<br />
estate to be in greater demand in the future.<br />
The EU taxonomy or the even stronger focus on ESG will make top properties<br />
even more in demand. This will also lead to older, non-sustainable properties<br />
being increasingly modified or upgraded to meet ESG requirements and thus<br />
increase in value.<br />
Karina Schunker,<br />
EHL Wohnen<br />
3<br />
This is to be expected in the future, which is why certified<br />
properties will be in even greater demand. At the moment, we see<br />
no signs that interest rates will rise. If inflation remains high, a<br />
reaction from the ECB cannot be ruled out.<br />
4<br />
One major topic that will be with us in <strong>2022</strong> is the implementation of ESG<br />
criteria in the real estate industry. In residential brokerage, we will see the<br />
introduction of the “ordering customer principle” (Bestellerprinzip – meaning<br />
whoever orders the services of the broker has to pay)) as a particular challenge<br />
and expect changes in the market in this context. We assume that the supply<br />
of apartments will become scarcer for end customers and that rents will<br />
increase due to the allocation of brokerage costs. In this context, increased<br />
transparency regarding the broker‘s activities is therefore essential. Because<br />
those looking for an apartment to rent will also want further professional and<br />
qualitative support of experts with the real estate search, despite omission of<br />
the brokerage fee. Creating affordable housing with rising construction costs<br />
and lower land reserves, especially in urban areas, will become even more<br />
difficult in the future. In addition, the housing supply will decline again after<br />
<strong>2022</strong>, which is why activating already built-up areas through rezoning could<br />
offer new opportunities.<br />
5<br />
After the last very successful year in<br />
20<strong>21</strong>, we want to continue to serve<br />
our customers with a high level of<br />
professionalism and quality. To do<br />
this, we will make our processes<br />
even better and more efficient in<br />
order to provide the customers with<br />
an even faster service. In this way,<br />
we would like to further expand<br />
the core business and the strong<br />
position of EHL Wohnen in the area<br />
of rental and sale of residential real<br />
estate in <strong>2022</strong>.<br />
90 ImmoFokus
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