MIPIM 2022 (21 MB)

Positions & Opinions
1
I remain optimistic because demand for housing is still high. In many ways, this is also due to the
pandemic, which has increased the desire for more space among many people. Many are now also willing
to realize a dream home in the countryside outside the big cities because, with the increased use of home
offices, there is less dread in commuting.
In addition, the pandemic has increased the desire for security, not only among private individuals but
also among investors. Therefore, residential construction remains attractive, certainly also due to a lack
of alternatives. Currently, there are too few commercial properties on the market; demand would be
exceptionally high for logistics centers and offices, while the retail sector, apart from grocery stores, is
weakening. This is also undoubtedly a direct effect of the pandemic.
Gerhild Bensch-König,
Raiffeisen WohnBau
2
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
construction and investment are additional price drivers.
ESG is already impacting on real estate financing; for institutional investors and funds, in particular, compliance with sustainability criteria and
thus the certification of buildings is essential. Private investors and home buyers are also paying more and more attention to this. They are quite
willing to pay a higher price for it, since sustainable construction methods are also associated with higher costs.
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
public sector real estate - in some cases significantly. The market environment for specific properties is certainly more uncertain because of Covid-19
than before the pandemic. Consider, for example, the domestic urban hotel industry, which is now struggling with enormous revenue losses for the
second winter in a row.
3
The market will determine whether even higher risk premiums can be factored
in. I don‘t see that happening across all asset classes. This year, despite very high
inflation, I don‘t expect interest rates to rise. But now that the experts at the
international central banks disagree, we‘ll see what 2022 brings.
4
Sustainability and ESG are the issues of the day. In connection with this, we will
have to deal more with the refurbishment or conversion of existing properties
in the future. Above all, there is resource conservation in construction and
operation, efficient use of energy, etc.
Here, too, we see the impact of the pandemic, as the use of office space will change.
Companies are rethinking their space strategies; home office and remote work
will change the way people work in the long term and directly impact on the real
estate market.
Another issue that remains important, especially for cities, is densification.
This could make property acquisition a little easier and help to ensure that less
additional space is built up.
5
With our entire team at Raiffeisen WohnBau, we
will do everything we can to continue to do well
through this unexpectedly long crisis.
It is important to us that our high-quality residential
buildings are places of retreat for our residents,
offering space for different lifestyles - from singles
to couples to families with children. In addition,
we are developing more and more projects outside
Vienna that, thanks to good public transport links
and exclusive green spaces, offer completely new
prospects, especially for young families.
With our very diverse commercial portfolio in
Austria and abroad, optimal yet partnership-based
management is very important to us. Ultimately,
the economic success of a portfolio property is also
the prerequisite for selling it profitably at the right
time.
70 ImmoFokus