MIPIM 2022 (21 MB)

Investing in Austria
.
Anton Cermak: The Austrian market is
certainly a closed society. If you don't have a
local partner or a representative office here,
it can be challenging to get into the market.
The investment market is certainly still
somewhat more localized in Austria than
elsewhere. Another challenge is certainly
the long administrative procedures. Legal
security is obviously out of the question, but
why the authorities need so much time for
various matters is difficult to explain to an
investor from one of the Benelux countries.
The possible returns are disproportionate
to the effort involved. Special issues, such
as the MRG, are of course an additional
challenge.
Franz Pöltl: Another critical point is the
transparency of the market. Foreign
investors need a certain minimum level of
transparency or research on the markets they
invest in. This is undoubtedly the case in
Vienna and some of the provincial capitals.
There are regular market reports from
several providers on the office market and
now also on the residential market. I can still
remember how we accompanied a German
fund in its first residential investment in
Graz. After the first possible projects had
been examined, those responsible felt that
Anton Cermak
Anton Cermak is a managing
partner at Beacon Invest and is
responsible for the successful
implementation of transaction
processes. Before joining the
Austrian investment broker, he
held sales management positions
in various corporations.
it was impossible to invest in a new city
without research-based market preparation.
Together with a local partner, we then set
about compiling the first Graz market report.
Following Vienna, Graz has also become
the focus of international, or rather
German, investors. Will other provincial
capitals or even smaller cities follow suit?
David Moese: We are of course interested in
provincial capitals. But how many products
with larger volumes are there really on the
market? Office buildings with less than ten
million Euros are hardly interesting for us. At
the end of the day, you also have to make sure
that you exceed the purchase price in 10 to 15
years. In the office segment, we feel comfortable
in Vienna and Graz. In the retail segment,
it's all of Austria.
Franz Pöltl: The provincial capitals only come
into question as tenants if they are in very
good locations, have extremely long leases
and serve the public sector. Essentially, you
have to look at a market on a usage-type
specific basis. Some international clients
would like to invest in residential real estate
in Salzburg and Innsbruck. But not even
Viennese people can afford anything in those
cities. If you look at the prices there, it often
makes little economic sense. But what is
certainly more and more in demand among
foreign investors is the area around Vienna,
where more and more people are moving
towards. Cities that will certainly up and
coming are Korneuburg, Tulln and Krems.
Some investors are already looking at Wiener
Neustadt. However, since these markets
are much smaller than the metropolis of
Vienna, the projects have to be adapted to the
respective demand and, above all, have to be
the right size..
David Moese
David Moese is responsible for
real estate investments in Austria
at the US investment house
Nuveen. In addition, the Graz
University of Technology graduate
is fund director and responsible
for various Austria strategies
at Nuveen Real Estate.
Anton Cermak: I see it the same way. Of
course, a product has to make sense in terms
of the size of the respective city. A project
with 120 apartments in Wels fits the city. In
Hollabrunn, that would be too much. You
mustn't forget the issue of spread. The big
question is: Are you sufficiently compensated
for the risk you take?
How will the Austrian investment market
develop in 2022? After all, the cycle has
been going on for a relatively long time.
At the same time, the war between Russia
and Ukraine is threatening adversity on
the geopolitical front. Not to mention
24 ImmoFokus