MIPIM 2022 (21 MB)
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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
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