MIPIM 2023 Digital Edition
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<strong>MIPIM</strong> <strong>2023</strong>: Special digital edition for a sustainable real estate industry<br />
Staying power in<br />
times of uncertainty<br />
Markus Mendel<br />
Know-How Wir leben Immobilien. & High Quality.<br />
Brokerage Vermittlung | Valuation | Verwaltung | Property | Bewertung Management | Baumanagement<br />
| Construction Management<br />
ehl.at ehl.at
04 ImmoFokus<br />
CARE Österreich<br />
CO2-neutral
Worte füllen keine Hilfspakete.<br />
Ihre Spende schon.<br />
Ausgabe 01|<strong>2023</strong> 05<br />
paket.care.at
Investing in Austria<br />
42 Turnaround on the<br />
investment market<br />
10<br />
Staying power in<br />
times of uncertainty<br />
Interview with<br />
Markus Mendel<br />
28 Certifications & Co.<br />
Orientation Guide<br />
or Advertising Gag?<br />
<strong>2023</strong><br />
<strong>MIPIM</strong><br />
Column<br />
Investing in Austria<br />
08 EDITORIAL<br />
86 IMPRINT<br />
10 STAYING POWER IN TIMES<br />
OF UNCERTAINTY<br />
Interview with Markus Mendel<br />
22 THE STRATEGIST<br />
Interview with Sebastian G. Nitsch<br />
28 REAL CIRCLE #30<br />
Certifications & Co.: Orientation Guide<br />
or Advertising Gag?<br />
42 AUSTRIAN INVESTMENT MARKET<br />
48 OFFICE MARKET IN VIENNA<br />
50 LOGISTICS / INDUSTRIAL MARKET<br />
IN VIENNA<br />
52 RESIDENTIAL PROJECTS IN THE PIPELINE<br />
70 IMMOVISION <strong>2023</strong><br />
Highlights and trends<br />
Fotos: BTL Media, Gugumuck, Adobe Stock<br />
06 ImmoFokus
Investing in Austria<br />
Join us at<br />
<strong>MIPIM</strong>, Cannes,<br />
14.–17.3.<strong>2023</strong>,<br />
stand R7.E2,<br />
Espace Riviera<br />
Let’s build Central<br />
Europe together.<br />
Real estate financing and project development requires<br />
more than just knowledge: It requires a partner who<br />
believes in your projects just like you do. That’s why Erste<br />
Group Commercial Real Estate focuses its services on a<br />
wide variety of offerings beyond just financial solutions.<br />
Time to believe. Time to invest.<br />
07 ImmoFokus<br />
www.erstegroup.com/cre
Investing in Austria<br />
You can‘t do<br />
without it<br />
„„Thanks to EU-<br />
Taxonomy and ESG<br />
criteria, there is no way<br />
around certifications.“<br />
Know-How Wir leben Immobilien. & High Quality.<br />
Vermittlung | Verwaltung | Bewertung | Baumanagement<br />
Brokerage | Valuation | Property Management | Construction Management<br />
Wir leben Immobilien.<br />
Vermittlung | Verwaltung | Bewertung | Baumanagement<br />
Staying power in<br />
times of uncertainty<br />
Markus Mendel<br />
ehl.at<br />
ehl.at<br />
ehl.at<br />
A<br />
t the <strong>MIPIM</strong> 2022, it was not<br />
a great topic of conversation<br />
just yet. In fact, few people<br />
gave it a second thought.<br />
After all, everyone was just happy to be back<br />
in Cannes after a year‘s break due to Covid.<br />
Frankly, it didn‘t come as a complete surprise<br />
- as we all know, it is particularly easy to be<br />
wise after the event - but on the other side of<br />
the Atlantic, the Federal Reserve had already<br />
sent out signals to this effect in 2021. We are<br />
talking about the interest rate turnaround<br />
initiated by the ECB last summer, with several<br />
steps in quick succession. It left hardly a<br />
stone unturned in the real estate sector.<br />
The state of shock in the real estate investment<br />
market, which has set in across Europe<br />
since the summer of 2022, is only slowly beginning<br />
to dissipate. The repricing process<br />
is still underway, and there continues to be a<br />
significant gap in the price expectations between<br />
the sellers and the buyers. Particularly<br />
in an environment characterized by question<br />
marks and uncertainties, industry events<br />
such as <strong>MIPIM</strong> are particularly importance.<br />
Here we have the unique opportunity to get<br />
together, to sound out what is possible, to<br />
establish or maintain contacts and possibly<br />
even to initiate deals. It is not without good<br />
reason that the <strong>MIPIM</strong> is considered the<br />
world’s leading real estate exhibition.<br />
As the most relevant domestic medium for<br />
real estate investments, ImmoFokus continues<br />
to be present at <strong>MIPIM</strong>, of course. With<br />
this publication, we would like to take the opportunity<br />
to introduce ourselves to the new<br />
participants and naturally to accompany old<br />
acquaintances once again during their rewarding<br />
stay in the South of France.<br />
The special edition of ImmoFokus on the<br />
occasion of <strong>MIPIM</strong> <strong>2023</strong> has a lot to offer in<br />
any case: In a short report, we inform about<br />
the latest developments on the Austrian real<br />
estate investment market and venture an<br />
outlook for the rest of <strong>2023</strong>. We have asked<br />
real estate investment experts on page XX for<br />
an even closer look into the future. And in a<br />
very personal cover interview, Markus Mendel<br />
gives us a glimpse into his daily routine as<br />
an investment broker at market leader EHL<br />
Investment Consulting.<br />
Michael Neubauer<br />
Herausgeber<br />
08 ImmoFokus
Investing in Austria<br />
Join us at<br />
<strong>MIPIM</strong>, Cannes,<br />
14.–17.3.<strong>2023</strong>,<br />
stand R7.E2,<br />
Espace Riviera<br />
Take new<br />
perspectives on<br />
real estate financing.<br />
We see the big picture and manage the details<br />
that are necessary to develop commercial real<br />
estate projects all over Central and Eastern Europe.<br />
Erste Group offers financing solutions for your<br />
visions across the entire real estate value chain.<br />
Time to believe. Time to invest.<br />
09 ImmoFokus<br />
www.erstegroup.com/cre
Investing in Austria<br />
Markus Mendel<br />
Born in Bavaria, Markus Mendel studied<br />
business administration, specializing<br />
in real estate and financial<br />
services in Stuttgart and started<br />
his career in leading German real<br />
estate companies back in 2004.<br />
In 2011, he then took on a senior<br />
position at PwC, where he was<br />
most recently a senior manager in<br />
the Real Estate Advisory division.<br />
He changed to EHL Investment<br />
Consulting at the beginning of<br />
2015, where he took over as head<br />
of the Transaction Advisory division.<br />
In 2020, Markus Mendel was<br />
appointed Managing Director of<br />
EHL Investment Consulting GmbH,<br />
which is part of the EHL Group.<br />
10 ImmoFokus
Staying power in<br />
times of uncertainty<br />
A man with endurance. „I assume that this year we will see significantly more investors from the international<br />
sector, especially also from the Anglo-Saxon region in Austria due to the changed yield situation, says Markus<br />
Mendel in an interview with ImmoFokus. The native Bavarian draws strength from (almost) daily fitness training.<br />
The interview was conducted by: Patrick Baldia und Michael Neubauer<br />
Is it true that you are passionate about<br />
going to the gym? How do you get into<br />
this hobby?<br />
Markus Mendel: II think you simply need<br />
a sensible balance to office work, the many<br />
evening events and the frequent client<br />
meetings over lunch or dinner. The good<br />
thing about the gym is that you can always<br />
go, almost around the clock and in any<br />
weather, which makes it very accessible. In<br />
addition, a large circle of friends also go to<br />
the gym regularly. That makes it even easier<br />
and keeps motivation high.<br />
Do you go to the gym every day?<br />
If I can, I try to. In the past few weeks, I‘ve<br />
actually been to the gym almost every day,<br />
always in the morning at 6 a.m. even before<br />
the workday starts. But of course, you also<br />
miss out occasionally. For example, when<br />
you‘re at a trade show or an evening event<br />
has gone on a bit longer again.<br />
Does the gym help you with your other<br />
great passion, motorcycling? I‘ve been<br />
told that it can also be quite strenuous ...<br />
It depends on how you ride. But yes, riding a<br />
motorcycle is not only relaxing, it can also be<br />
quite exhausting, especially if you like to ride<br />
in the mountains and on the serpentines in<br />
curving terrain, which is often the case with me.<br />
So, you take holidays on your bike?<br />
Yes. For the past 15 years, I have been going<br />
on a motorcycle tour lasting several days<br />
with a larger group of long-time friends<br />
every year at the end of June or the beginning<br />
of July. We usually head for the mountains<br />
and often south to Italy, to Lake Garda, for<br />
example. A tour like this is an excellent way<br />
to switch off and enjoy the surroundings, but<br />
you‘ll also find plenty of riding challenges in<br />
the winding regions.<br />
That sounds a bit risky. Has anything ever<br />
happened to you?<br />
It‘s undoubtedly one of the slightly riskier<br />
hobbies. And yes, something has happened<br />
to me before. A few years ago, I suffered<br />
a few of fractures in a fall. Unfortunately,<br />
something like that can happen, even if it<br />
shouldn‘t. But I also have to say that I was<br />
younger then and certainly took more risks<br />
than I do now. You learn from experiences<br />
like that.<br />
What can you take away from the gym<br />
or the back of the motorcycle into the<br />
professional world?<br />
What you can certainly take away from<br />
riding a motorcycle is that you can go full<br />
throttle, but at the same time, you have to<br />
have the risk under control if you want to<br />
last in the long term. I think this is a very<br />
important point. In the gym, or in sports<br />
in general, you need motivation, stamina,<br />
and endurance to achieve your goals, which<br />
doesn‘t happen overnight. That definitely<br />
helps me on the job as well.<br />
Do you have a dream bike?<br />
I do, actually. I bought it at the end of last<br />
year. Unfortunately, it‘s now sitting in the garage<br />
and of course, couldn‘t even be broken<br />
in yet in winter, but that will change soon.<br />
How do you break in a motorcycle?<br />
You ride a thousand kilometers at a maximum<br />
of six and a half thousand revolutions.<br />
To be more precise, first you go a bit easy<br />
on the road and then, after a thousand<br />
kilometers and the first service, you go into<br />
full gear.<br />
Can you still remember the first transaction<br />
in which you played a significant role?<br />
One of the first major transactions I was<br />
involved in during my professional life<br />
occurred in Germany. It involved the acquisition<br />
of an extensive residential portfolio.<br />
For me, it was a completely new field and<br />
absolutely exciting. It‘s something I‘ll<br />
always remember, and I‘m sure it sparked<br />
my enthusiasm for the job.<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
11
Investing in Austria<br />
How did you end up in the real estate<br />
industry?<br />
I have always been interested in real estate.<br />
In course of my studies, I also focused on real<br />
estate management and financial services<br />
and then stayed in the field. In the beginning,<br />
I concentrated on valuations. That‘s how I got<br />
into it. Then I quickly moved into international<br />
business in the transaction area.<br />
Later, at PwC, the consulting focus became<br />
more significant. But for me, the transaction<br />
business is still the most exciting field in the<br />
real estate industry.<br />
Do you have a particular favorite asset<br />
class?<br />
No particular asset class. What I personally<br />
like best are the unusual transactions. In<br />
other words, not the tenth residential or<br />
office property with the same pattern. That‘s<br />
also interesting, of course, and you learn<br />
something new with every transaction. But<br />
especially in turbulent times on the market,<br />
as we are experiencing right now, there are<br />
also deals that are a bit more complicated<br />
and complex. You have to be a bit creative in<br />
your approach and find solutions to challenging<br />
issues. For me, deals like that are the<br />
cherry on the cake.<br />
At last year‘s Expo Real, there was of a<br />
feeling that the atmosphere in Germany<br />
was one of disaster. The Austrian, on the<br />
other hand, as the famous popular saying<br />
goes, likes to say that the situation is not<br />
hopeless but serious. Are the Germans<br />
more pessimistic?<br />
Well, as a German optimist, I wouldn‘t agree<br />
with that. But I do believe that Germans<br />
are very fact orientated. Based on the facts<br />
and figures, conclusions are drawn, and the<br />
mood then tips in one direction or the other.<br />
The Austrians, as I have experienced it and<br />
as I like it, also concentrate on facts, but<br />
they approach things with a certain cynical<br />
charm and therefore tend to come across a<br />
bit more positively. But not every German is<br />
so pessimistic that he’s ready to throw in the<br />
towel. You can see that on the market at the<br />
moment. Some German investors who are<br />
active despite the current difficult market<br />
circumstances, with whom we are examining<br />
and also implementing transactions.<br />
Therefore, I think it very much depends on<br />
one’s personality - whether you see the glass<br />
half full or half empty.<br />
How did you come to work at EHL?<br />
The contact came about during my time at<br />
PwC and it was through the valuation team<br />
at EHL. We sat down together and chatted.<br />
Then I had a conversation with Michael Ehlmaier<br />
and Franz Pöltl, in which we found out<br />
quite quickly that we might be a good fit and<br />
could do something together in the future.<br />
As the saying goes, we then actually sketched<br />
out on a blank sheet of paper the direction in<br />
which the collaboration could go. And that‘s<br />
exactly the direction it took. I still have the<br />
paper at home, by the way.<br />
What convinced you to make a move to<br />
EHL back then?<br />
I was impressed by the fact that I came from a<br />
rather large company background, where many<br />
things were very bureaucratic and sometimes<br />
quite complicated, and that at EHL everything<br />
could be decided very quickly and efficiently,<br />
and in a highly professional manner. That was<br />
the deciding factor; I took the job and was able<br />
to become part of this powerful team.<br />
12 ImmoFokus
What has been your biggest deal so far?<br />
We were involved in the purchase of Icon Vienna<br />
by Allianz Real Estate and the DC Tower<br />
by Deka. Quartier Lassalle is also definitely<br />
one of them. However, it is not only the large<br />
transactions that attract a lot of attention<br />
in the media that give you a lot of pleasure.<br />
Many transactions that often go unnoticed<br />
can make you particularly proud.<br />
„You have to be<br />
very fast and<br />
efficient to be able<br />
to do a deal off<br />
market.“<br />
Markus Mendel,<br />
EHL Investment Consulting<br />
How do you prepare for such deals? How<br />
much teamwork goes into it?<br />
It always depends on the way something<br />
is being sold. It can happen in a structured<br />
bidding process, private sale, or entirely<br />
off market and, of course, it has an impact<br />
on the workload. Our investment team is<br />
genuinely the absolute mainstay and the<br />
secret of our success because this is where<br />
we prepare and structure what is then used<br />
for underwriting by the investors. This has to<br />
happen professionally and quickly.<br />
Is it more interesting to work for the<br />
buyer or the seller?<br />
It can be exciting for one as well as for the<br />
other. Of course, it is most exciting when<br />
you initiate the deal yourself. Then we are<br />
particularly happy.<br />
There is probably little reason to be happy<br />
at the moment, or is something happening<br />
off market?<br />
I disagree with the general pessimism that<br />
can be discerned at the moment. Obviously,<br />
fewer transactions are taking place. The<br />
big names among investors, i.e., the core<br />
capital is much more cautious than usual,<br />
and there is a lot of uncertainty about how<br />
the markets will develop, driven by the<br />
continuing interest rate hikes. But we are<br />
seeing first first-hand that a lot is happening<br />
at a lower price level and with alternative<br />
investors. So, the investment market has<br />
not ground to a standstill. As is the case in a<br />
changing market environment, new opportunities<br />
are simply emerging and there will<br />
be winners and losers, but the transactions<br />
will remain.<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
13
Investing in Austria<br />
„Of course, it is most<br />
exciting when you initiate<br />
the deal yourself. Then we<br />
are especially happy.“<br />
Markus Mendel,<br />
EHL Investment Consulting<br />
14 ImmoFokus
<strong>MIPIM</strong> | <strong>2023</strong><br />
15
Investing in Austria<br />
Does it take longer to complete deals in<br />
market phases like the current one?<br />
Transactions are definitely taking longer at<br />
the moment. And the more time that passes,<br />
the more can happen. This also increases the<br />
risk of another interest rate adjustment or something<br />
else happening. In other words, if it<br />
usually takes two to three months on average<br />
to complete a deal, it‘s currently perhaps four<br />
to six. Financing in particular takes longer.<br />
And when you are close to the finish line<br />
at the end of the day and find out that the<br />
financing has fallen through, that is of course,<br />
highly annoying to all parties involved.<br />
Is it true that some sellers only start<br />
negotiating with secured financing?<br />
In the current situation, securing financing<br />
is particularly important for the seller, as it is<br />
not uncommon for financing requested by the<br />
buyer to end up not being approved or not approved<br />
as planned. As a seller, you understandably<br />
want to make sure that your counterpart,<br />
to whom you are also granting exclusivity and<br />
thus rejecting other investors, can also handle<br />
the deal financially at the end of the day and<br />
that you are not entering negotiations in vain.<br />
At the moment, there is optimism in the<br />
industry that something is moving with<br />
the KIM regulation, regarding the ban on<br />
interim financing. Do you see it that way<br />
as well?<br />
I think it‘s obvious that something has to<br />
change here. If it is no longer possible for<br />
people to acquire property, or if the KIM<br />
Regulation creates such major obstacles,<br />
then that is not a healthy development.<br />
Particularly when you talk about interim<br />
financing, this is really incomprehensible: If,<br />
for example, you have already built up real<br />
estate assets or an extensive stock portfolio<br />
and thus clearly have a credit rating that can<br />
be financed, the KIM Regulation prevents financing<br />
from taking place if you do not have<br />
an additional 20% equity capital, a paradoxical<br />
situation. Although banks are allowed to<br />
finance such borrowers to a certain extent,<br />
this quota is exhausted relatively quickly.<br />
What would be the impact on the market<br />
of lifting the ban on interim financing?<br />
First and foremost, something that was<br />
created by regulation and hinders the market<br />
would be abolished. However, it remains to<br />
be seen whether the market would then be<br />
noticeably boosted because the increased<br />
interest rates are not exactly conducive to<br />
transaction activity either.<br />
Should the legislature not consider how<br />
to help people to raise the 20 percent<br />
equity? If one asks around, one gets the<br />
distinct impression that above all younger<br />
people cannot afford a loan.<br />
To begin with, it is difficult for many people<br />
to raise even 20 percent of their own capital.<br />
But that‘s not the main reason why you can‘t<br />
get a loan. In many cases, there are still<br />
moms, dads, grandmas and grandpas who<br />
can help out if you can’t raise this 20 percent<br />
on your own. A bigger hurdle is the debt<br />
service ratio of 40 percent, which may not<br />
be exceeded. This often hinders the process<br />
even more.<br />
Various sources currently tell us that the<br />
cycle of interest rate hikes should come<br />
to an end in the first half of the year. Is<br />
that realistic, or will the interest rates stay<br />
higher for much longer?<br />
I assume that we will see a few more interest<br />
rate hikes this year, as announced. The next<br />
one in March. Over the course of the year, we<br />
will see at least one more interest rate step,<br />
so we can assume that interest rates will not<br />
only move up insignificantly but noticeably.<br />
With what consequences?<br />
As you know, the capital market has a<br />
significant impact on the real estate industry,<br />
especially in the institutional sector. And<br />
when interest rates are higher, alternatives to<br />
real estate investments also become attractive.<br />
When I look at German government<br />
bonds, for which you currently get around<br />
2.6 percent, or bonds from the USA, which<br />
even offer up to four percent. Not to mention<br />
good corporate bonds. That sends clear<br />
signals to large investors and financial intermediaries<br />
with broad investment spectrum.<br />
At present, they often prefer to look at more<br />
liquid asset classes, some of which offer<br />
higher returns than real estate. While real<br />
„Raising even 20 percent equity<br />
is difficult for many. But that‘s<br />
not the decisive issue why some<br />
people can‘t get a loan.“<br />
Markus Mendel,<br />
EHL Investment Consulting<br />
estate investments will never go out of style,<br />
they will have to offer different yields to be<br />
competitive. After all, one must remember:<br />
It‘s not just the brick I buy that counts, but<br />
also how much interest I have to pay to afford<br />
the brick or finance it.<br />
Because you are talking about other<br />
yields, do you see that the situation is<br />
slowly normalizing in asset classes such<br />
as logistics, where yields approached<br />
those of residential properties in the wake<br />
of the Corona crisis?<br />
Of course, logistics properties are also in demand<br />
again at significantly different prices.<br />
Many investors are not only active in Austria<br />
but also on a European level or at least in<br />
16 ImmoFokus
WORDRAP MIT MARKUS MENDEL<br />
Are you a<br />
risk taker?<br />
As long as it<br />
is calculable<br />
Favorite hobbies?<br />
Riding motorcycles<br />
and going to<br />
the gym<br />
Your favorite way<br />
to drink coffee<br />
Milk without sugar<br />
Morning or<br />
evening person?<br />
Definitely<br />
morning<br />
person<br />
Which book is<br />
on your desk?<br />
My notebook<br />
In the next ten years,<br />
I would definitely like to...<br />
… Take a trip<br />
around<br />
the world<br />
When you turn<br />
on the radio in the car,<br />
what‘s playing?<br />
Kronehit<br />
How did you earn<br />
your first money?<br />
Changing tires in a<br />
car repair shop<br />
If you won the lottery,<br />
what would you do?<br />
Treat myself to<br />
a longer vacation<br />
Your biggest vice?<br />
All types<br />
of sweets<br />
With whom (living or deceased)<br />
would you like to<br />
spend an evening?<br />
Steven Spielberg<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
17
Investing in Austria<br />
18 ImmoFokus
German-speaking countries. And if a very<br />
good, long-term leased logistics property in<br />
a suitable location can now be obtained in<br />
Germany for five percent, then it is not the<br />
case that you can score in Austria with four<br />
or three percent. That will no longer work.<br />
Above all, it doesn‘t pay off if you have to<br />
take out financing at the current conditions.<br />
Do you think that with higher yields, we<br />
will see other international investors and<br />
not just mainly Germans in Austria?<br />
That is an exciting question. I expect that<br />
this year, due to the change in the yield<br />
situation, we will see more investors from<br />
the international sector than has been the<br />
case so far. The Austrians and Germans,<br />
who have dominated the market so far, have<br />
been very core-oriented, or more precisely,<br />
very conservative. If the market continues to<br />
change and issues such as ESG become more<br />
important, which is why old office properties<br />
are being brought up to date or at least<br />
to a newer standard, then classic value-add<br />
investors will come into play. These will still<br />
come from Austria and Germany, but also<br />
increasingly from the Anglo-Saxon region.<br />
We have seen fewer of them in this country<br />
in recent years.<br />
Because you mentioned ESG - are the<br />
investors you work with also interested<br />
in the S and the G?<br />
Absolutely, not just in the institutional sector<br />
but also with family offices and private<br />
investors. Among other things, investors<br />
are having a closer look at tenants. Suppose<br />
they come across companies that demonstrably<br />
violate environmental goals, child labor,<br />
or the like. In that case, they think twice<br />
about buying anyway, or at least a plan is<br />
worked out to compensate for this deficit on<br />
the ESG scale, i.e., to find new tenants.<br />
Actually, several industries can be seen<br />
unfavorably, not just arms manufacturers<br />
and the like. For example, companies that<br />
sell goods that have been produced in<br />
countries with demonstrably poor working<br />
conditions, child labor, etc....<br />
This is true and is already being considered<br />
very closely. It can be assumed that such<br />
constellations will no longer be acceptable<br />
for investors and owners in the course of the<br />
further development of the EU taxonomy and<br />
that the players will react accordingly. One<br />
quickly realizes that one is in a very complex<br />
environment in which not everything has<br />
been settled yet. There is certainly still work<br />
to be done here.<br />
You said earlier that you are currently also<br />
handling or processing new projects that<br />
have only become available in <strong>2023</strong>. What<br />
asset classes are these?<br />
These are more or less widely diversified.<br />
There is a lot of office, and I think we will<br />
see a lot of office transactions this year -<br />
even more than in the last few years, when<br />
residential was the dominant asset class. But<br />
we will also see transactions in the hotel and<br />
retail sectors, where very little has happened<br />
in recent years. Of course, investors are also<br />
interested in residential, but there is considerable<br />
reluctance here at the moment due<br />
to the substantial change in interest rates.<br />
Overall, the transaction market has not come<br />
to a standstill. Transactions are just taking<br />
place at different price levels. There is still<br />
the demand and the capital, and those have<br />
to be brought together to get a deal done at<br />
the end of the day.<br />
Why is residential currently less in<br />
demand from global investors?<br />
Residential is complex. The large residential<br />
projects that worked very well in the past in<br />
the headwind of the market hardly exist anymore.<br />
Those who have bought land recently<br />
have paid very high prices for it. At the same<br />
time, construction costs are still high, even if<br />
the situation has eased somewhat, but not to<br />
the extent that some had hoped. In addition,<br />
financing costs have risen significantly.<br />
Many project developers were hopeful that<br />
the market environment of recent years<br />
would continue. That is, you buy, you file,<br />
and develop the project a month or two later<br />
with no financing costs. That business model<br />
no longer works. Money costs money again.<br />
And the exit, which was estimated at three<br />
percent, is also no longer happening or is<br />
becoming increasingly difficult. In other<br />
words, it‘s painful in all directions. That‘s<br />
why there are fewer projects on the market,<br />
„Many project developers<br />
were hopeful that the market<br />
environment of the last few years<br />
would continue. That hope has not<br />
materialized.“<br />
Markus Mendel,<br />
EHL Investment Consulting<br />
and some of them are not even being built<br />
because people know that it‘s not profitable<br />
at the moment.<br />
Perhaps alternative financing had also<br />
been used ...<br />
Exactly Suppose you financed adventurously,<br />
for example, with short-term mezzanine capital<br />
or often simply with variable financing<br />
at initially favorable conditions. In that case,<br />
many market participants are now experiencing<br />
that the financing costs are exploding.<br />
Is mezzanine capital now osolete or is it<br />
getting a new boost?<br />
It will not happen that mezzanine capital<br />
costs will stay the same as before; they will<br />
rather gradually become more expensive,<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
19
Investing in Austria<br />
„<strong>MIPIM</strong> is a<br />
fixed date on our<br />
schedules, just<br />
like Expo Real.“<br />
Markus Mendel,<br />
EHL Investment Consulting<br />
of course. I‘m sure that some investors will<br />
continue to be forced to tap an alternative<br />
source of financing, and mezzanine capital is<br />
simply one of them.<br />
Last question: What will we see at<br />
<strong>MIPIM</strong>? Filled halls, lots of people?<br />
I rather believe that we will see significantly<br />
fewer visitors at <strong>MIPIM</strong> this year, especially<br />
also fewer exhibitors or fewer employees<br />
of the participating companies. I hear from<br />
many that they are going to Cannes with a<br />
significantly reduced team. Nevertheless,<br />
I believe that those who are there will not<br />
be there for the fun of it, but to do business.<br />
<strong>MIPIM</strong> is a fixed date on our schedules, just<br />
like Expo Real, to discuss transactions and<br />
opportunities with those present. I do expect<br />
that we will also initiate one or two deals this<br />
year and meet new investors as well. <br />
20 ImmoFokus
<strong>MIPIM</strong> | <strong>2023</strong><br />
21
Investing in Austria<br />
The strategist<br />
Quarter Fund: 6B47 launches „Althan Quarter“ as German<br />
“6B47 Stadtquartiere I” fund. Sebastian G. Nitsch, CEO of 6B47<br />
Real Estate Investors, on entering the world of institutional<br />
investment products. „Urban quarters are in line with the sign<br />
of the times and focus in particular on risk diversification,<br />
sustainability and location quality.“<br />
The interview was conducted by: Michael Neubauer<br />
22 ImmoFokus
With „6B47 Stadtquartiere I“, 6B47 is<br />
entering the world of institutional investment<br />
products. Is the fund because, apart<br />
from a few deals, nothing is happening on<br />
the transaction market at the moment?<br />
Sebastian G. Nitsch: No. The fund was<br />
strategically planned for a long time. Initial<br />
considerations were made long before the war<br />
in Ukraine. With the ‚6B47 Stadtquartiere I‘<br />
fund, we are expanding our business activities<br />
in the direction of investment management -<br />
an essential logical step for 6B47.<br />
Why a fund focusing on „urban quarters“<br />
in particular - doesn‘t that restrict you?<br />
The strategic orientation of the neighborhood<br />
fund is in line with the sign of the times and<br />
focuses in particular on risk diversification,<br />
sustainability and location quality.<br />
We are bringing the „Althan Quarter“ into the<br />
fund as a seed investment, which already meets<br />
all the strategic objectives from the outset.<br />
What is the target fund volume?<br />
The planned fund volume of our first real<br />
estate special AIF is 800 million Euros.<br />
Why was the fund approved in Germany?<br />
Our target group is investors from Germanspeaking<br />
countries. The service KVG model we<br />
use for our fund, has already been established<br />
in Germany for years. Moreover, the number of<br />
potential future investors in Germany is simply<br />
higher than in Austria. But of course, we will<br />
also offer Austrian institutional investors a<br />
stake in our fund.<br />
We are very well positioned when it comes to<br />
ESG and EU taxonomy. Oliver Julian Huber<br />
joined our team at the beginning of the year<br />
million Euros with that, that‘s a different product.<br />
For the Real Estate Club, condominium<br />
projects are the most suitable. These are of no<br />
interest to institutional investors.<br />
In other words, you will go on as before …<br />
Absolutely. Absolutely. We have seen in<br />
recent years that if we can sell something for<br />
a two-and-a-half percent return but, on the<br />
other hand, get 16, 17, or 18 Euros in rent - we<br />
would rather build rental apartments. I have<br />
the feeling that there is no objective scientific<br />
analysis of the fact that too few condominiums<br />
„We will significantly expand<br />
our quarters pipeline. Our<br />
„neighborhood share“ is already 58<br />
percent of our total floor space.“<br />
Sebastian G. Nitsch,<br />
Real Estate Investors AG<br />
Fotos: @Rizar.Photo<br />
Why as an open-end fund?<br />
To be able to successively add further neighborhood<br />
projects with a high residential share<br />
in the Core and Core Plus risk classes to the<br />
portfolio. This means the investments will<br />
focus mainly on prime locations in Austrian<br />
and German metropolitan areas.<br />
We will significantly expand our quarters pipeline.<br />
We already have a “neighborhood share”<br />
of around 58 percent of our total floor space,<br />
which will probably be around 75 percent or<br />
higher in just a few years‘ time.<br />
Can we see quarters as a new asset class?<br />
Until now, quarters was not considered as a<br />
separate asset class. Now it is an asset class in<br />
its own right and is particularly attractive for<br />
institutional investors for reasons of risk diversification.<br />
And as far as I can assess the market<br />
at the moment, we are the only providers who<br />
can already come up with a high-class quarter<br />
as a seed investment.<br />
as Head of Corporate Sustainability & ESG.<br />
His main task is to develop our strategic focus<br />
on sustainability for the entire Group in all<br />
countries and also to forge this ahead at the<br />
project level. He is also the contact person for<br />
topics such as EU taxonomy, ESG reporting and<br />
building certification.<br />
Does this mean the end for the 6B47 Real<br />
Estate Club?<br />
The Real Estate Club was founded to give investors<br />
the opportunity to make very transparent<br />
real estate investments together with a professional<br />
investor. This direction has not changed.<br />
You have to look at the Real Estate Club in asset<br />
class-specific terms. Our Real Estate Club is<br />
what brought us here. We value it very much<br />
and have had 13 years of good experience. It<br />
always depends a little bit on the asset class and<br />
the size. If I have a large international fund and<br />
say we‘re building a pipeline of three hundred<br />
have been built. Some developers may now<br />
change their minds because the return on sales<br />
is now three and a half percent, but the rent is<br />
15 Euros - roughly corresponding to a capitalization<br />
of five thousand Euros per square meter.<br />
However, I currently achieve a higher average<br />
price per square meter in individual apartment<br />
sales.<br />
Given the troubled situation - war in<br />
Ukraine, high interest rates, sharply rising<br />
construction costs - is this an ideal time for<br />
the fund?<br />
Of course we have asked ourselves this question.<br />
The fund offers the historic opportunity to<br />
leave the neighborhood as a neighborhood and<br />
not to sell off the separate sections individually.<br />
Were individual sales up for discussion?<br />
In times like these, you calculate and think<br />
through every scenario. Despite a large number<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
23
Investing in Austria<br />
of attractive buying offers, we decided not to<br />
sell the Althan Quarter with its four project<br />
sections, the residential buildings Sophie and<br />
Joseph, the hotel, and Francis as the centerpiece.<br />
If we had removed the residential section<br />
and switched to individual apartment sales, we<br />
might have earned more on this one section.<br />
We are taking this step not only because we<br />
do not want to let the property out of our<br />
hands but also because of very sober economic<br />
facts: The high demand for high-quality space<br />
and the established location in the heart of<br />
Vienna are the ideal prerequisites for a positive<br />
performance.<br />
The focus was on strategic considerations:<br />
Do we, as 6B47 want to take this next step of<br />
evolution and develop into an investment<br />
and asset manager? I believe that after 13<br />
years and with over 80 projects, we have<br />
already proved our project development<br />
competence. In order to be able to offer our<br />
future investors the best possible investment<br />
and asset management services, we are<br />
launching our fund together with Jones Lang<br />
LaSalle Asset Management GmbH, which<br />
already has many years of experience in this<br />
field. The fund is administered as a service<br />
KVG by IntReal, International Real Estate<br />
Kapitalverwaltungsgesellschaft in Hamburg,<br />
the German market leader in this field. As a<br />
team, the ideal trio.<br />
What is the minimum designated denomination?<br />
In principle, the Core or Core Plus segment is<br />
designed as an open-end fund for professional<br />
and semi-professional investors. The minimum<br />
denomination is twenty million Euros.<br />
If I could wish for something as 6B47, it would<br />
be more in the direction of a club deal, six to<br />
eight or perhaps ten institutional investors<br />
with tickets of around fifty million Euros.<br />
What rate of return can investors expect?<br />
The Internal Rate of Return, which we<br />
currently calculate over ten years, is seven to<br />
eight percent. The distribution yield will be<br />
above four percent.<br />
Are there already potential investors?<br />
We have not yet started funding. Initial talks<br />
are planned for the <strong>MIPIM</strong>. But I am sure we<br />
will be fully financed when construction is<br />
completed in 2024. We are beginning extra<br />
early. Even if institutional investors aren’t<br />
currently making any decisions, they are<br />
thinking about where they want to invest and<br />
how they want to allocate.<br />
24 ImmoFokus
Is everything going according to plan with<br />
the subprojects?<br />
Everything according to plan. We are even a<br />
little ahead of schedule.<br />
Is it because other developers have stopped<br />
their projects and the construction companies<br />
have spare capacities?<br />
You‘ll have to ask the construction companies<br />
about that. Of course, we are pleased to be on<br />
schedule and within budget.<br />
How do you assess the current market<br />
situation?<br />
It‘s like skiing in the fog. That means we have<br />
to remain flexible in our knees and perhaps<br />
also be prepared to make a sharp turn to the<br />
left or the right because we don‘t see the tree<br />
until very late. I haven‘t always considered<br />
everything to be rosy. But I also don‘t see<br />
everything quite as pitch black as many<br />
others do. At the moment, I prefer to remain<br />
below the radar and see what opportunities<br />
are out there.<br />
We are not active only in the acquisition,<br />
market participants are also approaching<br />
us. We‘ve also offered one or two mezzanine<br />
capital funds to come in as developers on<br />
existing projects to work out a joint compensation<br />
model. The worst thing that can happen<br />
6B47 Real Estate Investors<br />
6B47 Real Estate Investors is an internationally oriented real estate developer<br />
based in Vienna with offices in Düsseldorf, Berlin, Munich, and<br />
Warsaw and focuses its business activities on metropolitan regions in<br />
Austria, Germany, and Poland. The company currently manages a project<br />
volume of around EUR 2 billion, making it one of the leading providers<br />
in the sector in Austria, Germany, and Poland. The services cover the<br />
entire value chain, from project development to realization and utilization.<br />
The company‘s business model also includes real estate financing as an<br />
integral part of project development.<br />
www.6B47.com<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
25
Investing in Austria<br />
to an investor is a half-finished product. some<br />
projects that are bequeathed to the funder because<br />
the project developer is no longer there.<br />
That‘s where you have to find joint solutions.<br />
The most important thing is that the building<br />
is finished. We are flexible in this respect and<br />
have sufficient capacity to look at projects to<br />
bring them to a successful conclusion for all<br />
parties involved.<br />
Do you see any easing in land and construction<br />
prices?<br />
We will not see any drop in construction<br />
prices. With eleven percent inflation, stable<br />
construction prices are almost impossible<br />
anyway. Construction prices will not fall to<br />
pre-crisis levels. I‘m sure about that. That will<br />
not happen. We are living in a triangle of sales,<br />
land, and construction prices. Land prices<br />
are always the slowest to react. That‘s why the<br />
sellers often don‘t want to acknowledge what‘s<br />
happening in the world. I think, as always, the<br />
profit is in the purchase.<br />
Have you noticed any distress sales on the<br />
market?<br />
Since Covid, everyone has been waiting for<br />
bargains. I haven‘t seen any yet. The real<br />
bargains are not here yet. My background is<br />
in quantitative equity analysis. Dangerous<br />
market situations are always when prices rise,<br />
but volume dries up. Why is that? Because<br />
the seller is not getting what he wants, and<br />
the buyer is unwilling to pay what the seller<br />
wants. Then nothing happens for a while until<br />
someone moves. And that standstill is causing<br />
the liquidity crunch across the industry right<br />
now.<br />
Liquidity is probably the most sacred commodity<br />
of all. Right now, you can‘t rely on anyone.<br />
It used to be that decision makers made deals<br />
knowing that their boards would approve<br />
them. Today, you can‘t rely on any board.<br />
Everyone evaluates the framework differently.<br />
Althan Quarter<br />
On the 2.4-hectare site around<br />
Franz-Josefs railway station, a<br />
completely new urban district<br />
center is being created - unique<br />
in its kind - the Althan Quarter.<br />
Here, offices, co-working spaces,<br />
gastronomy, local suppliers,<br />
stores and service providers,<br />
high-quality apartments as well<br />
as a hotel and a parking garage<br />
will all find their place. This sustainable<br />
mix on approximately<br />
130,000 m2 of gross floor space<br />
will enable contemporary, urban<br />
living with minimum necessary<br />
travel. This saves time and<br />
energy - and creates an aboveaverage<br />
quality of life.<br />
26 ImmoFokus
That is absolutely justified. But we‘ve also<br />
experienced notary appointments where<br />
the buyer didn’t show up. Today, more<br />
than ever, the good old business caution<br />
applies: the deal is not done until the<br />
ink is dry and the money is in the bank.<br />
We don’t see significant transactions at<br />
the moment. The institutional investor<br />
in particular is very much expectation<br />
driven. Bets are being taken on whether<br />
or not you will soon see a four percent<br />
prime rate. Ask three banks, and you get<br />
four opinions.<br />
... and if I ask you?<br />
My bet stands at 3.75. The question is,<br />
how fast will the peak be reached? I‘m<br />
one who prefers to rip the Band-Aid<br />
off quickly rather than slowly. Once<br />
you reach that peak, the expectation is<br />
already going back to, „How fast are interest<br />
rates going down?“ That stimulates<br />
financial markets.<br />
Whether it takes one, two, or three<br />
steps is up to the ECB. If you analyze the<br />
past ECB steps carefully, the last step<br />
was usually the one that was too much,<br />
according to experts from the Financial<br />
Times, among others.<br />
To return to our fund: Currently, there<br />
is a historic opportunity to buy three<br />
hectares of building land projects in<br />
the heart of the most stable real estate<br />
market in Europe. Whether we will see<br />
investor reluctance here because of an<br />
interest rate peak that may last twelve<br />
months - the next few months will tell. I<br />
don’t think so. <br />
Sebastian G. Nitsch<br />
Sebastian G. Nitsch has been at the helm of 6B47<br />
Real Estate Investors AG since September 2020.<br />
The native Viennese has been a member of the<br />
management team since 2010 and a member of<br />
the Board of Directors for Corporate Finance and<br />
Investor Relations at 6B47 since 2013. Since 2016,<br />
he has been responsible as CFO of the entire<br />
group of companies.<br />
Before joining 6B47 Real Estate Investors AG,<br />
Nitsch spent five years on the management<br />
board of the Dekron Group, where he was primarily<br />
responsible for investments in companies in<br />
the field of mergers and acquisitions, as well as<br />
driving the creation of real estate funds and the<br />
project development of commercial and retail<br />
properties. Prior to that, he started his career as<br />
a board member of an asset management company,<br />
where he worked for nine years.<br />
Dedicated to Real Estate,<br />
focused on solutions.<br />
Advisory | Assurance | Tax | Legal | <strong>Digital</strong><br />
www.pwc.at/real-estate<br />
„PwC“ bezeichnet das PwC-Netzwerk und/oder eine oder mehrere seiner Mitgliedsfirmen. Jedes Mitglied dieses<br />
Netzwerks ist ein selbstständiges Rechtssubjekt. Weitere Informationen finden Sie unter pwc.com/structure.<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
27
Investing in Austria<br />
Real Circle<br />
#30<br />
Orientation Guide<br />
or Advertising Gag?<br />
Certifications & Co. At the 30th Real Circle, hosted by ERSTE BANK, ERSTE Immobilien KAG, IMMOunited,<br />
PwC and ImmoFokus, the agenda included a topic currently the subject of lively discussions in the real estate<br />
industry: Certifications.<br />
Authors: Patrick Baldia, Gerhard Fritz, Lisa Grüner, Rudolf Oezelt und Heimo Rollett<br />
D<br />
o we really need them? If we<br />
do, which ones are suitable<br />
for whom? Do they have any<br />
influence on the valuation of<br />
real estate? How meaningful are they at the<br />
end of the day? And: do they protect against<br />
greenwashing? We are talking about certifications<br />
that document the ecological, social<br />
and economic quality of buildings. There are<br />
now countless of them. However, it‘s not just<br />
the different distribution and inconsistent<br />
standards of the various certification systems<br />
that raise questions. It is their significance in<br />
times of new developments on the regulatory<br />
side – namely, the EU taxonomy. There was<br />
plenty to talk about for the selected real estate<br />
professionals who attended the event in the<br />
Winter Garden of the Erste Campus at the end<br />
of February.<br />
Certifications are important<br />
„Building certifications play an important<br />
role, on the one hand, for society, on the<br />
other hand, to achieve the goals of the EU<br />
taxonomy, to collect and assess data and to<br />
generally improve the planning process,“ states<br />
Elisabeth Sardy-Rauter, Senior Manager<br />
in the Construction & Real Estate division<br />
at Ernst & Young in Group A, at the start of<br />
the summit. Michael Herbek, Head of Project<br />
Development at BUWOG, notes that in the<br />
past, certifications were not so relevant for<br />
real estate developers, but they were for the<br />
investors and the global exit. „Especially in<br />
commercial real estate, certifications are a<br />
must, but we also observe this development<br />
in residential construction. In the future,<br />
certifiers will have to deliver an offer to be<br />
able to handle the whole range correctly and<br />
transparently for the developer,“ Herbek<br />
says. „The ideal would be a certificate that<br />
can make a statement in several directions,<br />
i.e., for different stakeholders, e.g., the developer,<br />
the investor and the end customer/user<br />
(tenant/buyer) because the latter are also<br />
increasingly asking for sustainable quality<br />
features.“<br />
Markus Huber, Managing Director of CC Real<br />
Project Management, questions the relevance<br />
of certificates. „I am divided on this issue,<br />
CC Real is a portfolio holder with its own<br />
properties, and I am an ÖGNI auditor and an<br />
EU Taxonomy Advisor. The topic is becoming<br />
increasingly relevant among our owners and<br />
customers. Also, the question of investing for<br />
„S“ in ESG can be discussed with owners now;<br />
in the past, the additional equipment in the<br />
bike room was already a problem. Wien Mitte<br />
and Millennium City were recently awarded<br />
a DGNB Platinum certificate. It shows that<br />
although owners have already received a<br />
good rating, they are still interested in further<br />
improvements. When applying for financing,<br />
the first question is which certificate to aim<br />
for and to what extent the building meets the<br />
EU taxonomy. In the case of new buildings,<br />
the verification is easier; in old or existing<br />
buildings, the biggest problem is the lack of<br />
building data.“<br />
Data and links<br />
Anna-Vera Deinhammer, responsible for<br />
International Relations and Municipalities at<br />
ÖGNI agrees and adds, „We have been aware<br />
28 ImmoFokus
„Certificates assure that<br />
sustainability and EU<br />
taxonomy have been<br />
mapped correctly.“<br />
Anna-Vera Deinhammer,<br />
ÖGNI<br />
of the topic of certification with this intensity<br />
for a year now. Pre-certificates now play a<br />
big role; they show whether a building is EU<br />
taxonomy-ready at all.“ Deinhammer finds<br />
Herbek‘s idea of a certificate for different stakeholders<br />
interesting. „All the data you need<br />
for a building is there, after all, but not everyone<br />
is interested in everything. Whoever<br />
does the risk assessment for financing is<br />
necessarily interested in something different<br />
than the end customer.“ What‘s important<br />
about the certificates is quality. „ÖGNI and<br />
DGNB are expert opinions for which the<br />
advisers and auditors are responsible. You<br />
can see through the financing issue that no<br />
one wants to produce stranded assets, so the<br />
market is paying a lot of attention to that.“<br />
Uncertainty in the real estate market is high<br />
because the EU Taxonomy Regulation has<br />
not yet been defined. Only the criteria for the<br />
so-called „Substantial Contributions“ for the<br />
first two protection goals have been formulated.<br />
„Certificates also have their limitations,<br />
as they are a snapshot of the condition of<br />
the building at the date it was just tested.“<br />
„Financing large<br />
volumes without<br />
certifications is no<br />
longer possible today.“<br />
Roman Eisenmagen,<br />
Erste Bank<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
29
Investing in Austria<br />
In addition, Huber adds that certificates for<br />
existing buildings have limited validity, and<br />
you have to keep renewing them, whereas in<br />
new construction, they are valid indefinitely,<br />
even if standards change in ten years.<br />
Renewed assessment after ten years<br />
Deinhammer takes a critical view of this: „It<br />
would make sense, due to the volatility of the<br />
specifications, to also check new buildings<br />
again after ten years and to certify them again<br />
to gold, platinum or crystal with update measures.“<br />
Sardy-Rauter raises the question of whether<br />
it is not enough to build according to the criteria<br />
of the EU taxonomy or whether it is not<br />
possible without certificates. Herbek thinks<br />
certifications make life easier in the long<br />
run because only one document is needed to<br />
show that the taxonomy has been followed.<br />
„It‘s more efficient for all parties involved in<br />
providing proof. In new construction, it‘s important<br />
to have the documents handy. In this<br />
context, you should also consider the topic<br />
of digitization and look at how BIM, certification,<br />
documentation, etc., can be brought<br />
together,“ says the department head.<br />
Making work easier<br />
Deinhammer intercedes and finds linking<br />
certificates and BIM interesting for the<br />
auditors‘ workflow. „It‘s similar to digital<br />
„In valuation, we can<br />
only represent what<br />
the market rewards.“<br />
Wolfgang Fessl,<br />
Reinberg & Partner<br />
construction permit applications to the city.<br />
It makes the work easier and makes it comparable.<br />
The fact that you can look up the EU<br />
taxonomy yourself is undisputed, but a certificate<br />
issuer or an auditor is not an integral<br />
part of the project team; that‘s someone from<br />
the outside, like a referee, who ideally accompanies<br />
the entire planning process and improves<br />
the process quality. It‘s already easier<br />
if you can refer to a scheme or use the swarm<br />
intelligence of a certificate if you want to<br />
achieve platinum, for example.“ Huber sees it<br />
the same way. „An independent review is important<br />
when you want to sell the property.<br />
Any buyer would question a self-assessment.<br />
In addition, it also makes it easier for the<br />
project team, and it simplifies the process.<br />
Furthermore, the DGNB is already working<br />
on an integration to be able to assess the EU<br />
taxonomy compliance together with certification<br />
in the future.“ Deinhammer also sees<br />
it as a case of mapping the EU taxonomy in<br />
the certificate. „Across Europe, a data frame<br />
is being considered, and the data will have<br />
to come from external auditors. Regarding<br />
content, we are preparing to collect as little<br />
30 ImmoFokus
„A certificate that can<br />
make a statement for<br />
different stakeholders<br />
would be ideal.“<br />
Markus Herbek,<br />
BUWOG<br />
data as necessary for as much information<br />
as possible. Our auditors share with us their<br />
practical experience regarding the technical<br />
criteria of the EU taxonomy; this knowledge<br />
is collected by the ÖGNI team and reported<br />
„Positive feedback is<br />
necessary to motivate<br />
property owners to make<br />
and implement a ‚green‘<br />
roadmap.“<br />
Anna Geher,<br />
Otto Immobilien<br />
back to Brussels via think tanks. Another advantage<br />
of participating in certification is that<br />
you are part of a big family, and the wealth of<br />
experience benefits the overall quality.“ Herbek<br />
confirms the importance of monitoring<br />
projects to achieve sustainability goals.<br />
Challenge: Certificate jungle<br />
„The topic of ‚building certifications and<br />
ESG‘ has generally been with us for the last<br />
three or four years,“ Nadja Hafez, Managing<br />
Partner ADEQAT Investment Services, opens<br />
the Group F discussion panel. The legislative<br />
cornerstone of the EU Taxonomy Regulation<br />
and Disclosure Regulation establishing categories<br />
of ESG financial products for the first<br />
time provides a clear framework. „But we<br />
can see that building certifications do not yet<br />
automatically meet these taxonomy regulations.“<br />
It would be desirable, the panel quickly<br />
agrees on this point, if there were standardizations<br />
in the market - rather than this jungle<br />
of certificates. Not every asset class is affected,<br />
as Matthias Nödl, Senior Counsel Cerha<br />
Hempel, critically notes, „I am mainly active<br />
in residential construction and leisure lodging.<br />
Apart from the large new construction<br />
projects in these areas, this topic is still in the<br />
very early stages.“ As a result, he says, there<br />
is a lot of uncertainty among many clients,<br />
some of whom may be under the impression<br />
that „you need a certificate to be successful.“<br />
Sometimes only the costs are seen, but not<br />
the advantages.<br />
„Is there a general need for certificates? If so,<br />
shouldn‘t it be standardized?“ Gerald Kerbl,<br />
tax consultant and partner TPA, asks the discussion<br />
group. At the moment, everything is<br />
directed at the investor, whether it is ÖGNI,<br />
DGNB, BREEAM or LEED. Among Germans<br />
right now, unsurprisingly, we see mainly<br />
DGNB and ÖGNI. Where ÖGNI is a bit ahead<br />
regarding certificates: ÖGNI certificates are<br />
the only ones that have directly or were the<br />
first to manage to have an EU taxonomy certification<br />
add-on to it. In a nutshell, „In the<br />
large-volume institutional sector, certificates<br />
have been the norm for some time.“ „Also in<br />
new residential construction,“ notes Gabriela<br />
Hauer, Head of Real Estate Clients in ERSTE<br />
BANK‘s Commercial Housing team. „It is<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
31
Investing in Austria<br />
„Among our owners and<br />
customers, the topic of<br />
certification is becoming<br />
increasingly relevant.“<br />
Markus Huber,<br />
CC Real<br />
„Certificates are too<br />
building-specific and<br />
need a wider scope.“<br />
Nadja Hafez,<br />
Adeqat<br />
„Our customers are private<br />
investors. A certificate<br />
according to ÖGNI is completely<br />
irrelevant to them.“<br />
Peter Karl,<br />
Erste Immo KAG<br />
significantly more difficult in existing residential<br />
construction.“ Erste Bank is committed<br />
to „green“ new financing, she said. Large<br />
projects have also been certified in the past.<br />
Hauer also advocates standardization: „Standardization<br />
would make many things easier.“<br />
Are certificates too building-specific?<br />
„Certificates are too building-specific and<br />
need a wider scope,“ Hafez brings a new<br />
aspect into the discussion. ESG issues will<br />
increasingly factor into valuations. „We are<br />
at the beginning of the discussion,“ notes<br />
Anna Schimmer, an attorney at PwC Legal,<br />
„What is sustainable is, after all, very much in<br />
flux. What is green or considered sustainable<br />
today may be judged differently tomorrow.“<br />
All certificates have one shortcoming, and<br />
that is they lag behind technical developments.<br />
Nödl comments, „This is inevitably<br />
the case. Technical developments quickly<br />
overtake regulations. Ö or DIN standards, EU<br />
standards - everywhere the regulations are<br />
not up to date.“<br />
„The many different certificates lead to a considerable<br />
amount of consulting expenses,“<br />
says Schimmer. „There are details about EU<br />
taxonomy compliance, cost/benefit assessments,<br />
and investment as well as the improvement<br />
requirements.“ Increasingly, green<br />
leases are also being discussed but rarely concluded.<br />
After all, how could non-sustainable<br />
use be sanctioned? Schimmer sees mainly<br />
positive incentives here. „It‘s about creating<br />
incentives.“<br />
Pressure is increasing<br />
“The practice in contract drafting clearly<br />
shows that negative consequences for violating<br />
any specifications in that direction find<br />
virtually no consensus. This often results in<br />
failed deals, because many negotiating parties<br />
say. I will rent something else which is<br />
cheaper or where I do not have this contractual<br />
penalty or negative consequences. With<br />
rental agreements, it is generally difficult to<br />
establish sanctions,” the PwC legal expert<br />
continues. Many leases already contain a<br />
variety of contractual penalties that hardly<br />
have any effect. Generating grounds for termination<br />
from this is difficult.” “International<br />
corporations that I have had the privilege<br />
of assisting nevertheless stringently enforce<br />
this,” Kerbl notes. “There is actually an understanding<br />
of ESG within the group, and it<br />
is included in every contract. We’ve had more<br />
than one discussion with tenants, and one<br />
or two lease negotiations have broken down<br />
because the tenant said, ‘I’m not interested in<br />
working on your future ESG concepts out of<br />
the blue.<br />
For Hafez, at least, it’s clear that there will be<br />
more pressure to comply in the future. “The<br />
question at the end of the day will always be:<br />
Who pays for it? Who pays the consequen-<br />
ces or the certification? Who pays for the<br />
investments needed to obtain certification,”<br />
concludes Nödl.<br />
Do certificates have an expiration date?<br />
“Whether certificates are the end of the line<br />
is not yet clear. Perhaps we will see relevant<br />
monitoring instead. The only clear thing is<br />
that the topic of sustainability will continue<br />
to accompany us,” says Roman Eisenmagen,<br />
Head of Commercial Housing at Erste Bank,<br />
summing up the fundamental tone of Table<br />
D quite well. For example, Stephan Pasquali,<br />
Managing Director of New Construction at<br />
3SI Immogroup, also considers it possible<br />
that certificates could be replaced by another<br />
monitoring tool. Currently, certificates<br />
are still the best standard recognized on the<br />
market.<br />
However, the certification process, especially<br />
for smaller companies that do not employ<br />
their own experts, definitely involves some<br />
effort, Pasquali added. “But if the cooperation<br />
with the auditors works, then you also get<br />
constructive input - for example, regarding<br />
sustainable design options,” he suggests.<br />
Why do certificates, as they are currently<br />
known, have an expiration date? Wolfgang<br />
Fessl, managing director and partner Reinberg<br />
& Partner Immobilienberatung, believes<br />
that they will be obsolete in the foreseeable<br />
future for one reason and will have to be re-<br />
32 ImmoFokus
placed by another instrument or developed<br />
accordingly, “The long-term goal must be<br />
the circular economy, and here we will need<br />
different guidelines than those on which certificates<br />
are based today.”<br />
Crucial for financing<br />
But is it even possible without a certificate<br />
today? “The larger and more professional a<br />
company is, the less it can do without certification.<br />
The more it goes in the direction<br />
of medium-sized businesses or apartment<br />
sales, the more likely it is that you can get by<br />
without,” says Eisenmagen, only to add, “Financing<br />
large volumes without certifications<br />
actually doesn’t work anymore.”<br />
“In the investment sector, nothing works<br />
without certificates. EU taxonomy is also becoming<br />
increasingly important there,” says<br />
Kerstin Robausch-Löffelmann, Managing<br />
Director for Development at Value One. For<br />
domestic developers, one would have all projects<br />
certified without exception. “We often<br />
have them pre-certified, which gives us proper<br />
guidelines we can follow,” says Robausch-<br />
Löffelmann. Additionally, “It really pays off<br />
in terms of financing.”<br />
“I see the basic error of our thinking as being<br />
that it’s always just about being a bit ahead of<br />
the competition,” says Fessl, addressing an<br />
important point. In reality, this is entirely irrelevant.<br />
The question is not where I want to<br />
go next but where we have to go. And that, as<br />
I said, is the circular economy. “Now we have<br />
to take all the small, unpleasant steps to get<br />
there eventually,” Fessl says.<br />
Penalties for greenwashing<br />
Anna Geher, head of real estate valuation at<br />
Otto Immobilien, also believes a change in<br />
thinking is needed. “Energy costs are rising,<br />
and we’ve budgeted for that, but we haven’t<br />
„Building<br />
certifications are<br />
important to collect<br />
data and improve the<br />
planning proc.“<br />
Elisabeth Sardy-Rauter,<br />
EY<br />
Real Success<br />
for<br />
M E E T U S<br />
@ M I P I M 2 0 2 3<br />
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<strong>MIPIM</strong> | <strong>2023</strong><br />
33
Investing in Austria<br />
budgeted for the climate protection roadmap,”<br />
she says. It’s a matter of thinking more<br />
long-term, she adds. At the same time, she<br />
also believes positive feedback is necessary to<br />
motivate property owners - both private and<br />
institutional - to create and also implement a<br />
roadmap. “But there should also be negative<br />
feedback in the form of penalties for those<br />
who, for example, use certificates only for<br />
greenwashing,” Geher maintains.<br />
More than any other measure, Robausch-Löffelmann<br />
would like to see “much more clarity”<br />
from lawmakers. “We don’t know where<br />
the EU taxonomy is heading and what it will<br />
cover since the relevant guidelines have not<br />
yet been defined,” the expert explains. At<br />
Value One, we therefore assume that projects<br />
will have to exceed the current requirements<br />
by 30 percent so that the properties will still<br />
be valuable in ten or 15 years.<br />
Do certificates play a role in the valuation?<br />
Expert Fessl sees parallels with energy certificates.<br />
He says everyone believed they would<br />
bring something when they were introduced.<br />
“Both on the market and in valuation, however,<br />
no one was interested,” Fessl claims.<br />
Precious metal plaques would also have stood<br />
out in the market initially. However, they<br />
would not have played a role on the valuation<br />
side, only on the marketing side.<br />
Better property, more expensive<br />
“In the valuation, we can’t say, ‘This is a gold<br />
or platinum certificate, and this makes so and<br />
so much.’ We can only show what the market<br />
is willing to reward. And if it doesn’t reward<br />
it because there are enough buildings on the<br />
market with plaques, then that’s just how it<br />
is,” Fessl explains. At the end of the day, he<br />
says, it comes down to the better property.<br />
“And that is only partially expressed in criteria<br />
such as energy performance indicators,<br />
but more often than not, it’s the credit standing<br />
of the tenant or the location. “If a building<br />
sold for more, it’s usually because it’s the<br />
better property,” Fessl sums it up.<br />
“I see it in a more differentiated way in that<br />
we also have a feedback loop with the EU<br />
taxonomy for projects that are taxonomy-<br />
„Green leases are also<br />
increasingly being<br />
discussed. International<br />
corporations are stringently<br />
following through.“<br />
Gerald Kerbl,<br />
TPA<br />
34 ImmoFokus
„Financing might get<br />
even cheaper with<br />
‚sustainability-linked loans‘<br />
than with ‚green loans‘.“<br />
Tomas Tischler,<br />
ÖRAG<br />
„In institutional new<br />
residential construction,<br />
certificates are<br />
now the norm.“<br />
Gabriele Hauer,<br />
Erste Bank<br />
„There is a need<br />
for binding regulations<br />
that must also be<br />
adhered to.“<br />
Anita Körbler,<br />
trovato<br />
eligible,” Geher replies. She is not in a position<br />
to quantify how this will be reflected in<br />
the valuation. “Probably not yet,” she says.<br />
But it will undoubtedly have an impact on<br />
the values in the future. She says the feedback<br />
mentioned does not exist at all with the<br />
energy certificate. “That’s why it didn’t make<br />
any difference whether it had an A or a D on<br />
it,” Geher explains.<br />
Voluntary certificates remain<br />
“Voluntary certificates are by no means<br />
losing their importance due to the EU taxonomy.<br />
Since they are not in conflict with the<br />
EU taxonomy,” says Thomas Tischler, board<br />
member of ÖRAG, in the context of the discussion<br />
in Group G. “Real estate without certification<br />
and EU conformity will be unable to<br />
be financed or exploited in the future. In the<br />
long run, it will even be possible to finance<br />
more favorably with ‘sustainability-linked<br />
loans’ than now with ‘green loans’,” he adds.<br />
Alfred Ripka, Director of ESG Regulation and<br />
Audit at PwC, is convinced that the criteria<br />
behind the certificates will have to adapt to<br />
the EU taxonomy. The certificates will do<br />
their utmost to ensure they also meet the<br />
requirements of the EU taxonomy. However,<br />
this does not mean the EU taxonomy will<br />
replace the certificates for Fabian Weyss, Architect,<br />
Project Development Manager DLH<br />
Deutsche Logistik Holding. “The free choice<br />
between certificates will continue to be decisive.”<br />
However, there is no way around<br />
adjustments.<br />
Adjustment necessary<br />
Ripka reports customers who have little understanding<br />
that a building that used to be<br />
platinum-certified suddenly no longer complies<br />
with the EU taxonomy. “The criteria of<br />
the certificates need to be adapted or aligned<br />
with EU requirements,” he says. But he also<br />
sees that the EU criteria are constantly being<br />
adapted and tightened.<br />
The provisions of the EU taxonomy are going<br />
in the right direction, but one can see that<br />
technical expert groups are developing the<br />
conditions. “They see what is technically<br />
possible today, but they can’t judge whether<br />
that is realistic or what it will cost. But it looks<br />
good on paper.” Fundamentally, he doubts<br />
that the EU’s plan to make all buildings green<br />
will work. For existing buildings, taxonomy<br />
compliance will be challenging to establish.<br />
“A building with a glass façade can only be<br />
made climate compliant with immense investment.”<br />
“Even in new construction, there are limits<br />
that can’t be crossed,” Weyss cautions. Ripka<br />
is convinced that buildings that do not meet<br />
the strict requirements can still be financed<br />
in the future, but there will be different<br />
conditions. “However, it is not forbidden to<br />
construct buildings that are not taxonomy<br />
compliant.”<br />
Data needs structure<br />
Another problem with existing buildings is<br />
insufficient data: “Often there is too little or<br />
too inaccurate data. In many properties, there<br />
is only one meter and no sub-meters,” says<br />
Tischler, directing the discussion to the topic<br />
of data. He is convinced that the first step is<br />
to invest in data collection. Only then do you<br />
have a basis for developing strategies. For Manuel<br />
Oberaufner, Head of Product Development<br />
at IMMOUnited, the question is where<br />
the data comes from and how to bundle it.<br />
“There will still be a lot of development work<br />
to be done here; we are still at a very early<br />
stage.” For him, data collection is one thing,<br />
and structuring is another. “Optimally, you<br />
will be able to monitor the data in real-time.”<br />
For reporting, however, much more data will<br />
be needed in the future, he says, but opportunities<br />
can arise from this. Much of the data is<br />
currently analog, on paper or lists. “Solutions<br />
that automate, digitize and compile data are<br />
the challenge facing companies. Because<br />
numbers are becoming increasingly relevant<br />
for companies to manage,” the expert sums it<br />
up.<br />
In the future, many companies will also<br />
have to deal with the issue of mandatory<br />
reporting. “Since 2016, there has been the<br />
‘Non-Financial Reporting Directive,’ which<br />
all companies with more than 500 employees<br />
must report. From 2025, the ‘Corporate<br />
Sustainability Reporting Directive’ will oblige<br />
all other large corporations to produce annual<br />
sustainability reports,” Riepl explains.<br />
Reporting will drive corporate strategy, “but<br />
it will only look at what needs to be reported<br />
because you can then sell yourself better.”<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
35
Investing in Austria<br />
„At the moment,<br />
certificates are still<br />
the best standard<br />
recognized in the<br />
market.“<br />
Stephan Pasquali,<br />
3SI Immogroup<br />
„In the investment sector,<br />
nothing works without<br />
certificates. EU taxonomy is<br />
also becoming increasingly<br />
important there.“<br />
Kerstin Robausch-Löffelmann,<br />
value one holding<br />
„We would like to see<br />
a standardized building<br />
certification like the<br />
‚sticker‘ for cars.“<br />
Sebastian Sturmer,<br />
Erste Immo KAG<br />
Standardization is the order of the day<br />
For Franz Pöltl, managing partner at EHL<br />
Investment Consulting, standardization is<br />
the name of the game when it comes to certifications.<br />
“This is also what many market<br />
participants expect from the EU taxonomy.<br />
Especially on the part of developers, who cannot<br />
know to whom they will ultimately sell.<br />
Every investor has his own ideas,” he says.<br />
Wolfgang Scheibenpflug, Head of Real Estate<br />
and Location Management at the Vienna Airport<br />
(Flughafen Wien AG), sees himself in a<br />
unique position: “We don’t sell. We develop,<br />
build and operate the properties ourselves.”<br />
For the airport, the question is not who will<br />
buy the real estate if the worst comes to the<br />
worst.” However, in the competition between<br />
locations, a certificate is in high demand<br />
among international tenants. “For this reason,<br />
we had the Airport City certified according<br />
to ÖGNI as the first neighborhood in<br />
Austria.” For them, it was not enough to certify<br />
individual buildings. It was an important,<br />
correct step because more and more tenants<br />
- not just since the sharp rise in energy prices<br />
- are asking for certifications and energy<br />
figures. The fact that the airport has been<br />
CO2-neutral since the beginning of the year<br />
is another logical step toward sustainability.<br />
“Since we don’t have any investors or sell internationally,<br />
we decided very early on to get<br />
the ÖGNI certificate. It has a high value and<br />
„The free choice between<br />
certifications will continue<br />
to be crucial.“<br />
Fabian Weyss,<br />
DLH Estate Austria<br />
is ideally suited for our purposes,” explains<br />
Scheibenpflug.<br />
On the rise: Residential<br />
building certificates<br />
“Certificates are also very much on the<br />
rise in residential real estate,” notes Karin<br />
Schmidt-Mitscher, division manager for residential<br />
construction at Erste Bank. “Without<br />
certification, it will soon no longer work in<br />
residential construction. This applies both to<br />
financing and to residential construction as<br />
an investment product.”<br />
“Our customer is the private investor. He<br />
doesn’t care about a certificate, according<br />
to ÖGNI. He knows the eco-label from some<br />
products in the supermarket,” says Peter Karl,<br />
Managing Director of ERSTE Immobilien<br />
KAG, explaining why his company’s large<br />
retail funds are adorned with the eco-label.<br />
The exciting question for him is, “Which certificate<br />
will I use in the future?” He says the<br />
EU taxonomy will set a new standard sooner<br />
or later. “Like the sticker on cars,” Karl notes.<br />
“There are uniform standards there - no different<br />
weighing. If everything is okay - you<br />
get the sticker. If it’s not, you don’t.” What’s<br />
binding, however, is that the sticker comes<br />
from a specialist workshop. “It doesn’t matter<br />
who does the service; it just has to be a certified<br />
workshop. Whether it’s done by an ÖGNI<br />
auditor or a klimaaktiv auditor doesn’t matter.”<br />
The goal must be to make it as simple as<br />
possible: If there’s an EU taxonomy score of<br />
X, there’s an EU taxonomy certificate. Result:<br />
“If there’s no certificate, we’ll see clear markdowns.”<br />
Certificate comparison impossible<br />
“The problem is that the individual criteria<br />
are weighted differently - making it impossible<br />
to compare certificates,” interjects Pöltl.<br />
“Each certificate is a product of the region<br />
where it originated,” adds Scheibenpflug.<br />
Pöltl: “It’s no longer possible without it. Someone<br />
like Peter Karl expects that ‘building<br />
36 ImmoFokus
„For sustainability<br />
reporting, you will need<br />
much more data in the<br />
future.“<br />
Manuel Oberaufner,<br />
IMMOunited<br />
stickers’ will become a requirement. Who<br />
hasn’t got – will have to stay outside”.<br />
“In the residential sector, however,” says<br />
Peter Vcelouch, lawyer and partner at Cerha<br />
Hempel, “you have to distinguish between<br />
new and old buildings. In old buildings, you<br />
know anyway that it looks different. If someone<br />
absolutely wants this location, this apartment,<br />
he may accept the lack of an energy certificate<br />
or a less favorable energy certificate.”<br />
Weaknesses<br />
However, the EU taxonomy also has weaknesses.<br />
The performance of the 15 percent premium<br />
properties in each local market is to be<br />
used as a general benchmark. “But how is this<br />
supposed to work without a register?” wonders<br />
Karl. “In Slovakia, this register already<br />
exists.” “It’s also difficult to prove the degree<br />
of improvement in refurbishment,” Schmidt-<br />
Mitscher adds to the discussion. Tailwind in<br />
terms of certification, comes from soaring<br />
energy prices. “Now everyone is really aware<br />
that sustainability also has a very massive<br />
economic aspect,” Karl says. The question<br />
arises, “Are there really already so many wellcertified<br />
residential properties that I really<br />
have a choice?” asks Scheibenpflug.<br />
Binding rules needed<br />
“I am sure that the topic of certification will<br />
increasingly affect us in the future, especially<br />
when it comes to building in the existing<br />
stock because we are already realizing today<br />
that the further sealing of the soil cannot go<br />
on. But for this to change, binding regulations<br />
are needed, and these must be adhered<br />
to,” says Anita Körbler, founder and managing<br />
director of trovato GmbH, during the<br />
Group C discussion.<br />
“I represent the provocative thesis asking,<br />
what will change? Probably nothing. Cer-<br />
„A good database<br />
is the basis of any<br />
certification.“<br />
Lukas Weinwurm,<br />
IMMOunited<br />
„Market participants hope<br />
for standardization from the<br />
EU taxonomy.“<br />
Franz Pöltl,<br />
EHL Investment Consulting<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
37
Investing in Austria<br />
tificates and expert opinions have always<br />
existed. It’s just that the requirements have<br />
been raised. Possibly the thinking is that the<br />
requirements will be lowered again to meet<br />
certain criteria,” says Kurt Rusam, COO Eyemaxx<br />
Real Estate Group.<br />
„The criteria of many<br />
certificates need<br />
to be adapted and<br />
aligned with the EU<br />
taxonomy.“<br />
Alfred Ripka,<br />
PwC Österreich<br />
Sebastian Sturmer, Risk Management and<br />
Compliance ERSTE Immobilien KAG, emphasizes<br />
how important it is for Europeanlevel<br />
regulations to correspond with other<br />
rules. “It is no use if, on the one hand, I am<br />
supposed to prepare reports following the EU<br />
Taxonomy Regulation, with data that I do not<br />
have, and on the other hand, there is the Basic<br />
Data Protection Regulation, which makes it<br />
impossible for me to obtain such data,” Sturmer<br />
maintains. Furthermore: “We would like<br />
to see a standardized building certification<br />
similar to the (MOT) ‘sticker’ for cars.”<br />
„In part, only the<br />
costs are seen in<br />
certifications, but<br />
not the benefits.“<br />
Matthias Nödl,<br />
Cerha Hempel<br />
38 ImmoFokus
„In old buildings, too high<br />
sustainability standards<br />
can become a problem for<br />
private investors.“<br />
Peter Vcelouch,<br />
Cerha Hempel<br />
„The ÖGNI certificate has<br />
a high value and is ideally<br />
suited for our purposes.“<br />
Wolfgang Scheibenpflug,<br />
Flughafen Wien<br />
„Different certificates lead<br />
to a significant amount of<br />
consulting work.“<br />
Anna Schimmer,<br />
PwC Legal<br />
Sponsors<br />
DIAMOND<br />
PLATINUM<br />
GOLD<br />
SILVER<br />
FOUNDING PATRON<br />
SUPPORTING PARTNER<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
39
Investing in Austria<br />
“For us as ImmoUnited, it is important that we<br />
keep track of the many certificates. From what<br />
I have noticed so far, it is often difficult to compare<br />
the individual data,” Lukas Weinwurm,<br />
Chief Product Officer, IMMOunited GmbH,<br />
reports on his experience with the subject.<br />
“The problem is - and I know this from conversations<br />
with large Austrian project developers<br />
- that today you can no longer sell your<br />
buildings at all if you can’t provide evidence<br />
of a certificate. But often the question arises,<br />
which of the many certificates available on<br />
the market do I take at all?” said Stevan Tomic,<br />
Senior Business Development Manager<br />
PAYUCA Parking Solutions, on a key point<br />
discussed in the other groups. “It’s like this in<br />
Austria, when you sit across from an American<br />
investor, he doesn’t know klimaaktiv and<br />
ÖGNI. Only BREEM or LEED mean anything<br />
to him,” said Rosam about the certificate preferences<br />
of US investors. At the same time, an<br />
ÖGNI certificate has very high requirements<br />
compared to an international certificate. <br />
„The primary goal<br />
must be CO2 neutrality.“<br />
Karin Schmidt-Mitscher,<br />
Erste Bank<br />
„US investors only know<br />
BREEM or LEED certificates.“<br />
Kurt Rusam,<br />
Eyemaxx<br />
40 ImmoFokus
Hier geht‘s<br />
zum Video<br />
www.immo-timeline.at<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
41
Investing in Austria<br />
Influence of interest<br />
rate turnaround on the<br />
investment market<br />
Increasing investor enthusiasm. After a solid performance in the previous year despite many challenges,<br />
experts expect more momentum on the Austrian real estate investment market in <strong>2023</strong>.<br />
T<br />
he Austrian real estate investment<br />
market has had busier times in the<br />
past compared to 2022. Given the<br />
turnaround in interest rates - not<br />
to mention inflation, high commodity prices,<br />
economic weakness, supply chain problems<br />
and war in Ukraine - the transaction volume<br />
of just over four billion Euros, which is around<br />
ten percent down from the previous year but<br />
still in line with the ten-year average, it is still<br />
pretty respectable particularly because some<br />
forecasts had assumed a significantly worse<br />
result as a whole.<br />
It is undoubtedly a good sign that the market<br />
has gained further momentum in the fourth<br />
quarter. And as the experts at EHL Investment<br />
report, there is currently significantly more<br />
interest in investments than in the fall of 2022.<br />
However, the price expectations of potential<br />
buyers and sellers are still too far apart for<br />
deals to be concluded. „Experience shows that<br />
it takes around half a year for a new market<br />
equilibrium to form, so we expect a significant<br />
increase in transaction activity again from the<br />
middle of the year,“ said Franz Pöltl, managing<br />
partner of EHL Investment Consulting.<br />
Repricing continues in<br />
the first half of the year<br />
CBRE also expects the ongoing repricing<br />
process on the Austrian real estate market<br />
to continue, at least in the first half of the<br />
year. According to Lukas Schwarz, Head of<br />
Investment Properties, review processes and<br />
acquisitions are currently taking longer, and<br />
a clear focus by investors on good and convincing<br />
assets can also be discerned. „In addition<br />
to location and tenant structure, for example,<br />
ESG criteria play a particularly significant role,“<br />
he added. Furthermore, „Properties that do not<br />
meet these requirements are not shortlisted by<br />
investors or are only sold at large discounts.“<br />
„Properties in weaker locations, with difficult<br />
leasing situations or a greater need for action<br />
concerning ESG goals, will trade at lower<br />
prices,“ Pöltl also says. In the case of top properties,<br />
where indexation of rents can also be<br />
enforced, the inflation protection that real<br />
estate is known to offer will once again attract<br />
greater attention, he adds. „For these properties,<br />
the price adjustment will also be limited,“<br />
the EHL investment head maintains.<br />
„Whether there will be a revival in transaction<br />
activity from the third quarter onwards depends,<br />
particularly in the residential segment, on whether<br />
prices can adjust to the changed interest<br />
rate level,“ believes Christoph Lukaschek, Head<br />
of Investment at Otto Immobilien. The emphasis<br />
here is on residential real estate. With a<br />
share of more than 30 percent of the transaction<br />
volume, this asset class was number one in 2022,<br />
as in previous years. According to Lukaschek,<br />
this was primarily due to several large-volume<br />
sales. Office (20 percent), logistics (15 percent)<br />
and retail (10 percent) came in second.<br />
Further price adjustments<br />
Where are prices headed? The restrictive<br />
lending regulations by banks, combined with<br />
rising SWAP rates in all asset classes, negatively<br />
impact price development, according<br />
to EHL. This is reflected not only in higher<br />
interest rates but also in higher capital requirements<br />
and risk margins. In many cases, this<br />
leads to price adjustments.<br />
According to the experts at CBRE, the fact<br />
that prime yields in Austria were corrected<br />
upward by an average of 70 basis points in<br />
2022 - overall, office and residential buildings<br />
were affected the most with an adjustment of<br />
75 basis points - can even be considered moderate<br />
compared with other Western European<br />
countries. Further corrections are expected for<br />
<strong>2023</strong>, although they should be less drastic. At<br />
any rate, the prime yield in the residential segment<br />
is currently around 3.50 percent, while<br />
it is just under four percent in the office segment.<br />
Significantly more is to be earned with<br />
top logistics real estate, namely 4.5 percent.<br />
This is only topped by shopping centers (5.25<br />
percent) and retail parks with five percent.<br />
Austrians dominate<br />
Last year, Austrians were the most active players<br />
on the investment market, accounting for<br />
almost 70 percent of the transaction volume.<br />
Germans accounted for 26 percent, followed<br />
by international investors with five percent.<br />
Overall, it was primarily special funds, project<br />
42 ImmoFokus
developers and family offices that set the tone.<br />
As Pöltl confirms, institutional capital, which<br />
has been very active in Austria in recent years,<br />
has found its way into other markets and asset<br />
classes on a large scale, such as fixed-interest<br />
securities denominated in U.S. dollars and<br />
government bonds.<br />
In any case, the share of international investors<br />
is expected to increase further. EHL expects to<br />
see a number of joint ventures between local<br />
developers and institutional, well-capitalized<br />
investors, mainly from the UK and the US, in<br />
project development and revitalization of existing<br />
properties in the coming months. These<br />
investors are increasingly looking for suitable<br />
investment opportunities. They will be attracted<br />
not only by the higher yields but the returns<br />
on their investment will also play a role.<br />
The fact that international investors are<br />
partly filling the gap left by institutional<br />
investors can certainly speak slightly positively<br />
for <strong>2023</strong>. „Due to the currently robust<br />
demand on the tenant markets and the<br />
planned easing of real estate financing, we<br />
are cautiously optimistic about <strong>2023</strong>,“ says<br />
Markus Arnold, owner, and CEO of Arnold<br />
Immobilien. He points to the surprisingly<br />
good fourth quarter of 2022 as „possibly a<br />
good indication for <strong>2023</strong>.“ „We will only be<br />
able to make more precise assessments after<br />
<strong>MIPIM</strong> in Cannes,“ Arnold concludes. <br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
43
Investing in Austria<br />
44 ImmoFokus
Selected investment transactions 2022<br />
Property Type of use Size/sqm Seller Buyer<br />
U6 Center Büro 24.800 Westcore Andromeda Exklusiv<br />
Modecenterstraße 12-14 Büro 24.000 KGAL AKRON<br />
Donau Business Center Büro 23.000 CA Immo Investorenkonsortium<br />
Green Worx Büro 17.000 Union Investment ARE Austrian Real Estate<br />
Simmeringer Hauptstraße 47-49 Büro 12.980 HIH Global Invest vivoreal<br />
Lassallestraße 7 Büro 6.000 Zürich Versicherung AG Bank Austria Real Investment<br />
Franzensbrückenstraße 5 Büro 2.140 S-Immo GPH<br />
Seestadt Aspern H1 Wohnen 26.416 Wien 3420 aspern Soulier<br />
Seestadt Aspern H5 Wohnen 24.505 Wien 3420 aspern Arch. Moser / STC<br />
High Five Wohnen 16.860 STC/Roombuus ZBI AG<br />
Lavater 2 Wohnen 15.970 invester United Benefits BA Real Invest<br />
Quadrill Bauteil Memphis & Boston Wohnen 11.800 Bodner Bau BA Real Invest<br />
Rennweg 72-74 Wohnen 9.040 Privatinvestor LNR<br />
Dresdner Straße 90 Gewerbliches Wohnen 21.000 S+B Gruppe Greystar<br />
Novovest Portfolio Logistik/Industrie 167.980 Palmira Soini Asset<br />
SkyLog Logistik/Industrie 24.500 DLH DEKA<br />
e-Log Park Vienna South Logistik/Industrie 19.000 DLH DEKA<br />
Cross Dock Logistik Enns Logistik/Industrie 12.980 Meier Immobilien-Gruppe KanAm Grund Group<br />
Trinity Park Linz Entwicklungsgrundstück 60.000 Privatinvestorenkonsortium Vermehrt Gruppe<br />
Wohnentwicklungsqt. „Alvorada“ Entwicklungsgrundstück 41.000 VD Development BUWOG<br />
Eagle Portfolio Einzelhandel 50.000 Pfeiffer Beteiligungs GmbH Soravia<br />
Haid-Center Linz Einzelhandel 44.240 ECE Real Estate Partners institutioneller Investor<br />
SC17 Einzelhandel 11.820 SERONE INTERNATIONAL FMZ Family Point<br />
TLAPA Gemischt genutzt 11.560 Vermehrt LLB<br />
Rossmarkthöfe Gemischt genutzt 9.000 SIGNA SÜBA<br />
Mechelgasse 1 Gemischt genutzt 6.500 CA Immo Peek & Cloppenburg<br />
Vienna Twenty Two (Bassena Hotel) Hotel 198 SIGNA / ARE Raiffeisen Immobilien KAG<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
45
Investing in Austria<br />
46 ImmoFokus
<strong>MIPIM</strong> | <strong>2023</strong><br />
47
Investing in Austria<br />
Vienna office market<br />
Vienna Research Forum. In the fourth quarter of 2022 take-up on the Vienna office market totaled 29,621 m² –<br />
around 35% less than in the third quarter of 2022 and 48% less than in the fourth quarter of 2021.<br />
T<br />
his is what the results of the Vienna<br />
Research Forum (VRF) show<br />
after evaluating the current key<br />
data of the Vienna office market.<br />
The VRF only takes into account modern office<br />
space built since 1990 or completely renovated<br />
and office space which meets certain quality<br />
criteria such as indoor climate, elevators or IT<br />
standards.<br />
According to the Vienna Research Forum, the<br />
largest take-up was the new lease of 4,035 m²<br />
in the Airportcity Vienna submarket. This corresponds<br />
to approx. 14% of the total take-up on<br />
the Vienna office market in the fourth quarter.<br />
Another large-scale letting was also registered<br />
in Erdberg submarket with 2,200 m².<br />
A total of 65 lettings were recorded in the<br />
fourth quarter – 10 less than in the previous<br />
quarter and 15 more than in Q4 2021.<br />
A closer look at take-up based on type of rental<br />
shows that 100% account for new leases and<br />
0% for pre-lets*.<br />
Vacancy rate is 3.9% in 4th quarter<br />
In the fourth quarter of 2022, the vacancy rate<br />
in the VRF portfolio of modern office buildings<br />
in Vienna stands at 3.9%, which is 0.7 percentage<br />
points less as in the same period of the previous<br />
year (Q4 2021) and 0.2 percentage points<br />
less than in the previous quarter.<br />
The submarket with the lowest vacancy rate<br />
was Central Station with 0.36% and the submarket<br />
with the highest rate was Airportcity<br />
Vienna with 13.32%<br />
For the first time in September 2016, the VRF<br />
collected the total stock of modern office space<br />
for Vienna which it updated at the end of the<br />
fourth quar-ter of 2022: it amounts to 5,946,993<br />
m²**, of which 63% belong to class A and 37%<br />
to class B real estate according to VRF standard.<br />
Analysis Submarkets Vienna Q4/2022<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 2,209,865 1,015,498 1,194,367 3,3% 5.702<br />
Donaucity 537,736 287,634 250,102 2,6% 0<br />
Prater/Lasallestraße 752,993 667,405 85,588 4,4% 7.452<br />
Erdberg - St. Marx (East) 677,152 570,989 106,163 4,1% 4.195<br />
Central Station 519,820 424,754 95,066 1,0% 2.482<br />
Wienerberg (South) 453,971 323,745 130,226 8,9% 437<br />
North 429,392 225,317 204,075 2,6% 315<br />
West 259,117 147,733 111,384 4,9% 4.175<br />
Airport City Vienna 106,947 70,147 36,800 13,3% 4.861<br />
Total 5,946,993 3,733,222 2,213,771 3,9% 29.619<br />
take-up<br />
48 ImmoFokus
Rentals 2022 (selected examples)<br />
Property Size sqm Address<br />
ISS Facility Services GmbH 6.200 m² 2; Quartier Lassalle 1<br />
NexCo Beteiligung GmbH 5.900 m² 23; Liesinger Flur-Gasse 2c<br />
ATOS Österreich 5.200 m² 22; IZD-Tower<br />
Rechtsanwaltskanzlei 4.400 m² 9; Doppio Due<br />
Austria Power Grid 3.300 m² 22; IZD-Tower<br />
DLA Piper Weiss-Tessbach 3.300 m² 1; Haus am Schottentor<br />
IWG Gruppe 3.300 m² 9; Francis<br />
MSC Österreich 2.200 m² 12; Inno Center<br />
Johnson Controls 2.100 m² 23; Brunnerstraße 81a<br />
PSD Psychosozialer Dienst 2.000 m² 21; Grand Central<br />
PSD Psychosozialer Dienst 1.900 m² 2; Lassallestraße 3<br />
Nuance Communications Austria 1.800 m² 12; Euro Plaza<br />
The Vienna Research Forum initiator is the<br />
Association for quality promotion in the<br />
real estate sector (immQu) with the leading<br />
Vienna commercial real estate companies,<br />
CBRE GmbH, Colliers International Immobilienmakler<br />
GmbH, EHL Immobilien GmbH,<br />
ÖRAG Immobilien Vermittlung GmbH, OTTO<br />
Immobilien GmbH and Spiegelfeld International<br />
GmbH. They provide anonymously and<br />
independently of each other key parameters,<br />
such as take-up, vacancy rates, completions, to<br />
the VRF database. The data is then published<br />
quarterly to provide a comparative analysis<br />
which helps investors and companies.<br />
www.viennaresearchforum.at<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 2022<br />
Completions <strong>2023</strong><br />
Quelle: EHL Market Research | Q2 2021<br />
Property Size sqm Address<br />
Quartier Lassalle 2 54.000 m² 2; Lassallestraße 5<br />
Quartier Lassalle 1 24.000 m² 2; Lassallestraße 1<br />
Twenty One/Innovation Hub 14.800 m² 21; Siemensstraße 87-89<br />
Das Lebendige Haus 9.000 m² 1; Postgasse 8-10<br />
Vienna Twenty Two (BT 1) 8.000 m² 22; Dr.-Adolf-Schärf-Platz 1<br />
Doppio Due 6.000 m² 9; Peregringasse 2-4<br />
F80 4.000 m² 15; Felberstraße 80<br />
Lukoil-Headquarter 3.800 m² 4; Schwarzenbergplatz<br />
Schreyvogelgasse 2 2.500 m² 1; Schreyvogelgasse 2<br />
Quelle: EHL Market Research | <strong>2023</strong><br />
Property Size sqm Address<br />
VIO Plaza 22.600 m² 12; Schönbrunner Straße 230<br />
myhive am Wienerberg, Urban Garden 15.000 m² 10; Wienerbergstraße 3-5<br />
Gösser Halle 4.700 m² 10; Laxenburger Straße 2 B<br />
Muthgasse 109A 3.500 m² 19; Muthgasse 109A<br />
Quelle: EHL Market Research | <strong>2023</strong><br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
49
Investing in Austria<br />
Logistics / Industrial<br />
Market in Vienna<br />
I<br />
n the second half of 2022 take-up of<br />
logistics, production and industrial space<br />
in Vienna and the surrounding area<br />
amounted to 76,061 sqm. This is what<br />
the results of the Vienna Research Forum Logistics/Industrial<br />
(VRF-LI) show after evaluating<br />
the current key data. The VRF only considers<br />
logistics premises that meet certain quality<br />
criteria such as hall height, shunting area and<br />
distance from the motorway.<br />
the logistics and industrial market in the<br />
second half of 2022. Another major take-up<br />
was registered in the submarket Vienna<br />
South with 13,877 sqm.<br />
Looking at the take-up of space by type of use,<br />
98 percent of the space is accounted for by logistics<br />
space and 2 percent by production space.<br />
For the first time in November 2019, the VRF<br />
Logistics/Industrial collected the total stock<br />
of logistics, production and industrial space in<br />
Vienna and the sur¬rounding area. It has been<br />
updated at the end of the second half 2022 and<br />
amounts to 5,820,053 sqm, of which 51 percent<br />
belong to production and industrial space and<br />
49 percent to logistics space.<br />
The total logistics take-up incl. areas that<br />
are not considered by the VRF amounted to<br />
87,286 sqm.<br />
The highest quality standards are met by 52<br />
percent of the classified buildings, so-called<br />
logistics class A objects, while 32 percent are<br />
qualified as class B and 16 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.<br />
Vienna Surr. North<br />
Vienna North<br />
Vienna West<br />
Vienna East<br />
Vienna South<br />
According to the Vienna Research Forum<br />
Logistics/Industrial, the largest take-up<br />
comprised 25.200 sqm in the submarket<br />
Vienna Surrounding East. It corresponds to<br />
around 33 percent of the space take-up on<br />
Vienna Surr. South<br />
Vienna Surr. East<br />
About the Vienna Research Forum<br />
The Vienna Research Forum initiator is the Association for quality promotion in the real estate sector (ImmQu) with the leading Vienna commercial real<br />
estate companies, CBRE, Colliers International, Immobilienmakler GmbH, EHL Immobilien, ORAG Immobilien Vermittlung, Otto Immobilien and Spiegelfeld<br />
International. They provide anonymously and independently of each other key parameters, such as take-up, vacancy rates, completions, to the VRF<br />
database. The data is then published quarterly to provide a comparative analysis which helps investors and companies.<br />
50 ImmoFokus
Logistics Industrial Market Vienna: Submarkt second half of 2022<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 2022<br />
Vienna North 740,184 259,021 50,000 123,139 85,882 481,163 0<br />
Vienna East 704,512 279,882 39,770 228,622 11,490 424,630 0<br />
Vienna South 1,050,127 483,186 163,605 137,600 181,981 566,941 13,877<br />
Vienna West 44,823 21,823 0 7,500 14,323 23,000 5,552<br />
Vienna Surr. North 1,243,683 441,060 322,060 70,100 48,900 802,623 1,197<br />
Vienna Surr. East 895,637 705,637 560,837 70,800 74,000 190,000 35,188<br />
Vienna Surr. South 1,141,087 690,880 371,601 279,807 39,472 450,207 20,247<br />
Total 5,820,053 2,881,489 1,507,873 917,568 456,048 2,938,564 76,061<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
51
Investing in Austria<br />
VIENNA<br />
1–2 Romm apts: 59 %<br />
3 Romm apts: 30 %<br />
4+ Romm apts: 141 %<br />
All apartments on offer (n = 28.501)<br />
With loggia: 27 %<br />
With balcony: 57 %<br />
With terrace: 26 %<br />
With garden: 10 %<br />
With open space: 92 %<br />
(loggia/balcony/terrace/garden)<br />
All apartments on offer (n = 28.796)<br />
Apartments: 99 %<br />
Terrace house/Duplex: 1 %<br />
Detached house: 0 %<br />
All residential units in EXPLOREAL (n = 50.142)<br />
ø 50 Apartments / Project<br />
Arithmetic average of suitable<br />
projects (n = 993)<br />
ø 64,2 sqm Wohnnutzfläche<br />
Median of all residential units on<br />
offer (n = 8.154)<br />
ø 8,9 sqm Freiflächen<br />
(Loggia/Balkon/Terrasse)<br />
Median of all residential units<br />
on offer (n = 8.154)<br />
ø 0,77 PKW-Stellplätze / Wohnung<br />
Arithmetic average of suitable projects<br />
(n = 1.003)<br />
ø Land cost share: 1.046 €/sqm<br />
Arithmetic average of suitable<br />
projects (n = 543)<br />
Source: EXPLOREAL/Stand: 18.08.2022<br />
Projects in marketing (Marketing Start 2021)<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Projekte<br />
Projekte<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Wien 256 13.281 2,29 103,7<br />
Wien 256 13.281 2,29 110,5<br />
Wien 1., Innere Stadt 4 29 1,8 94,4<br />
Wien 2., Leopoldstadt 7 1286 12,3 112,1<br />
Wien 3., Landstraße 12 1235 13,2 108,3<br />
Wien 4., Wieden 3 111 3,4 107,4<br />
Wien 5., Margareten 3 38 0,7 109,8<br />
Wien 6., Mariahilf 5 98 3,2 111,3<br />
Wien 7., Neubau 6 150 4,8 109<br />
Wien 8., Josefstadt 3 37 1,5 109,1<br />
Wien 9., Alsergrund 3 45 1,1 111,2<br />
Wien 10., Favoriten 24 1151 5,4 113,3<br />
Wien 11., Simmering 6 542 5,1 110,4<br />
Wien 12., Meidling 11 608 6,2 108,1<br />
Wien 13., Hietzing 9 354 6,6 99,3<br />
Wien 14., Penzing 17 766 8,2 107,4<br />
Wien 15., Rudolfsheim-<br />
Fünfhaus<br />
7 132 1,7 111,8<br />
Wien 16., Ottakring 10 287 2,8 110,3<br />
Wien 17., Hernals 10 191 3,4 108,3<br />
Wien 18., Währing 8 232 4,6 104,2<br />
Wien 19., Döbling 13 153 2,1 103,3<br />
Wien 20., Brigittenau 4 568 6,7 113,5<br />
Wien 21., Floridsdorf 22 840 4,7 114,3<br />
Wien 22., Donaustadt 54 3.792 18,6 117,2<br />
Wien 23., Liesing 15 636 5,5 108,5<br />
Fotos: pixLab, StudioVlayStreeruwitz, Squarebytes, Labvert, Dietrich Untertrifaller<br />
52 ImmoFokus
Completions &<br />
Pipeline<br />
Owned property Private financed rental Subsidized rental Other Other<br />
Top-3-Projects in Completion <strong>2023</strong> ff.<br />
KUKU<br />
Completion Q4 2024<br />
1230 Wien, Gastgebgasse Bauplatz 3<br />
Danube Flats<br />
Completion Q4 2024<br />
1020 Wien, Wagramer Straße 2<br />
The One<br />
Completion Q1 <strong>2023</strong><br />
1030 Wien, Modecenterstrasse 20<br />
Developer<br />
Heimbau, Gemeinnützige Bau-, Wohnungs- und<br />
Siedlungsgenossenschaft<br />
Gemeinnützige Siedlungs-Genossenschaft<br />
Altmannsdorf und Hetzendorf<br />
Apartments subsidized rent 98 bzw. 110<br />
Apartements for rent<br />
Superförderung<br />
99 bzw. 122<br />
Net rent €/sqm 5,63<br />
Developer<br />
S+B Gruppe - Soravia<br />
Apartments privately<br />
financed<br />
550<br />
Apartments subsidized rent 40<br />
Base Costs €/sqm 250<br />
Asking price €/sqm 10.959<br />
Selling pricepreis €/sqm 9.659<br />
Developer<br />
Wohnbauvereinigung für Privatangestellte<br />
Gemeinnützige GmbH.<br />
Gemeinnützige Bau-, Wohn- und<br />
Siedlungsgenossenschaft „Neues Leben“<br />
registrierte Genossenschaft mbH<br />
Apartments privately<br />
financed<br />
Apartements for rent<br />
freifinanziert<br />
224<br />
170<br />
Base Costs €/sqm 556<br />
Net rent €/sqm 11,64<br />
Asking price €/sqm 6.097<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
53
Investing in Austria<br />
LOWER AUSTRIA<br />
1–2 Romm apts: 35 %<br />
3 Romm apts: 36 %<br />
4+ Romm apts: 29 %<br />
Apartments: 80 %<br />
Terrace house/Duplex: 18 %<br />
Detached house: 2 %<br />
All residential units in EXPLOREAL (n = 21.009<br />
ø 21 Apartments / Project<br />
All apartments on offer (n = 14.696)<br />
With loggia: 19 %<br />
With balcony: 43 %<br />
With terrace: 50 %<br />
With garden: 37 %<br />
With open space: 97 %<br />
(loggia/balcony/terrace/garden)<br />
All apartments on offer (n = 14.961)<br />
ø 1,68 PKW-Stellplätze / Wohnung<br />
Arithmetic average of suitable projects<br />
(n = 1.013)<br />
Arithmetic average of suitable<br />
projects (n = 988)<br />
ø Land cost share: 474 €/sqm<br />
Arithmetic average of suitable<br />
projects (n = 233)<br />
ø 75,2 sqm Wohnnutzfläche<br />
Median of all residential units on<br />
offer (n = 14.958)<br />
ø 11,8 sqm Freiflächen<br />
(Loggia/Balkon/Terrasse)<br />
Median of all residential units<br />
on offer (n = 14.961)<br />
Source: EXPLOREAL/Stand: 18.08.2022<br />
Projects in marketing (Marketing Start August 2021)<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Projekte<br />
Projekte<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Niederösterreich 232 5.299 1,04 105<br />
Niederösterreich 232 5.299 1,04 105<br />
Amstetten 12 240 2,1 102,6<br />
Baden 24 469 3,2 107,7<br />
Bruck an der Leitha 13 358 3,4 110,6<br />
Gänserndorf 12 262 2,5 109,6<br />
Gmünd 96,1<br />
Hollabrunn 8 183 3,5 101,4<br />
Horn 4 34 1,1 100,4<br />
Korneuburg 12 369 4 109,9<br />
Krems an der Donau<br />
(Stadt)<br />
4 88 3,5 104,9<br />
Krems (Land) 7 125 2,2 102,7<br />
Lilienfeld 98,8<br />
Melk 14 211 2,7 101,3<br />
Mistelbach 11 118 1,6 103,7<br />
Mödling 16 401 3,4 108,5<br />
Neunkirchen 10 137 1,6 102,2<br />
Sankt Pölten (Land) 20 526 4 103,9<br />
Sankt Pölten (Stadt) 10 635 11,3 103,7<br />
Scheibbs 4 62 1,5 99,9<br />
Tulln 20 382 3,6 110,3<br />
Waidhofen an der Thaya 1 12 0,5 96,2<br />
Waidhofen an der Ybbs<br />
(Stadt)<br />
1 17 1,5 99,2<br />
Wiener Neustadt (Land) 14 246 3,1 103,7<br />
Wiener Neustadt (Stadt) 12 402 8,5 111,1<br />
Zwettl 3 22 0,5 95,6<br />
Fotos: Tobias Singer, ZOOM VP<br />
54 ImmoFokus
Completions &<br />
Pipeline<br />
Owned property Private financed rental Subsidized rental Other Other<br />
Top-3-Projects in Completion <strong>2023</strong> ff.<br />
St. Pölten XIX/1+2+3<br />
Completion März <strong>2023</strong><br />
3100 St. Pölten, Niederösterreichring 5<br />
Steingötterhof<br />
Completion Q3 2024<br />
3100 St. Pölten, Dr. Wilhelm-Steingötter-Str. 25<br />
Fliegergasse 15-35<br />
Completion Q1 2024<br />
2700 Wr. Neustadt, Fliegergasse 15-35<br />
Developer<br />
Gemeinnützige Bau-, Wohn- und<br />
Siedlungsgenossenschaft „Alpenland“<br />
Apartments privately<br />
financed<br />
Apartments subsidized 46<br />
Apartments subsidized rent 148<br />
Base Costs €/sqm 235<br />
68<br />
Developer<br />
6B47 Real Estate Investors<br />
Owner-occupied apartment 191<br />
Asking price €/sqm 3.948<br />
Base Costs €/sqm 346<br />
Selling price €/sqm 4.125<br />
Developer<br />
MITRAS Holding und ELK BAU<br />
Apartments privately<br />
financed<br />
126<br />
Asking price 3.707<br />
Net rent €/sqm 6,99<br />
Asking price €/sqm 3.614<br />
Selling price €/sqm 3.557<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
55
Investing in Austria<br />
BURGENLAND<br />
1–2 Romm apts: 43 %<br />
3 Romm apts: 30 %<br />
4+ Romm apts: 27 %<br />
All apartments on offer (n = 2.708)<br />
With loggia: 51 %<br />
With balcony: 35 %<br />
With terrace: 49 %<br />
With garden: 40 %<br />
With open space: 97 %<br />
(loggia/balcony/terrace/garden)<br />
All apartments on offer (n = 2.819)<br />
Apartments: 74 %<br />
Terrace house/Duplex: 24 %<br />
Detached house: 2 %<br />
All residential units in EXPLOREAL (n = 3.485)<br />
ø 13 Apartments / Project<br />
Arithmetic average of suitable<br />
projects (n = 278)<br />
ø 74,2 sqm Wohnnutzfläche<br />
Median of all residential units on<br />
offer (n = 2.819)<br />
ø 11,0 sqm Freiflächen<br />
(Loggia/Balkon/Terrasse)<br />
Median of all residential units<br />
on offer (n = 2.819)<br />
ø 1,73 PKW-Stellplätze / Wohnung<br />
Arithmetic average of suitable projects<br />
(n = 289)<br />
ø Land cost share: 431 €/sqm<br />
Arithmetic average of suitable<br />
projects (n = 56)<br />
Source: EXPLOREAL/Stand: 28.10.2022<br />
Projects in marketing (Marketing Start Oktober 2021)<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Burgenland 103 904 1,01 103,7<br />
Eisenstadt (Stadt) 6 88 5,8 109.3<br />
Eisenstadt-Umgebung 12 161 3,6 108.0<br />
Güssing 12 68 2,6 98.7<br />
Jennersdorf 3 26 1,5 99.5<br />
Mattersburg 13 132 3,3 101.9<br />
Projekte<br />
Projekte<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Burgenland 103 904 1,01 103,7<br />
Neusiedl am See 18 156 2,6 108.2<br />
Oberpullendorf 16 81 2,2 102.4<br />
Oberwart 23 192 3,5 99.8<br />
Rust (Stadt) 108.0<br />
Fotos: K3 Immobilien, Michael Pinzolits Fotografie, TheHeyon<br />
56 ImmoFokus
Completions &<br />
Pipeline<br />
Owned property Private financed rental Subsidized rental Other Other<br />
Top-3-Projects in Completion <strong>2023</strong> ff.<br />
Bischof Stefan Laszlo-Straße<br />
Completion Q3 2025<br />
7000 Eisenstadt, Bischof Stefan Laszlo-Straße<br />
Developer<br />
Neue Eisenstädter Gemeinnützige Bau-, Wohnund<br />
Siedlungsgesellschaft m.b.H.<br />
Dorfsiedlung Markt Allhau<br />
Completion Q2 2024<br />
7411 Markt Allhau, Hochstrasse 47<br />
Developer<br />
Plus-Immobilien GmbH<br />
Bahnhofsplatz 5<br />
Completion Q3 2024<br />
7000 Eisenstadt, Bahnhofsplatz 5<br />
Developer<br />
K3 Immobilienentwicklungs GmbH<br />
EISK3 Projektentwicklung GmbH<br />
Apartements for rent 69<br />
Net rent €/sqm 9,56<br />
Owner-occupied apartment 45<br />
Asking price €/sqm 4.192<br />
Apartments privately<br />
financed<br />
45<br />
Base Costs €/sqm 864<br />
Asking price €/sqm 4.413<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
57
Investing in Austria<br />
STYRIA<br />
1–2 romm apts: 45 %<br />
3 romm apts: 39 %<br />
4+ romm apts: 16 %<br />
All apartments on offer (n = 9.861)<br />
With loggia: 6 %<br />
With balcony: 58 %<br />
With terrace: 37 %<br />
With garden: 22 %<br />
With open space: 96 %<br />
(loggia/balcony/terrace/garden)<br />
All apartments on offer (n = 10.097)<br />
Apartments: 96 %<br />
Terrace house/Duplex: 3 %<br />
Detached house: 1 %<br />
All residential units in EXPLOREAL (n = 17.040)<br />
ø 26 Apartments / Project<br />
Arithmetic average of suitable<br />
projects (n = 649)<br />
ø 62 sqm Wohnnutzfläche<br />
Median of all residential units on<br />
offer (n = 10.091)<br />
ø 13,8 sqm Freiflächen<br />
(Loggia/Balkon/Terrasse)<br />
Median of all residential units<br />
on offer (n = 10.097)<br />
ø 1,37 PKW-Stellplätze / Wohnung<br />
Arithmetic average of suitable projects<br />
(n = 661)<br />
ø Land cost share: 641 €/sqm<br />
Arithmetic average of suitable<br />
projects (n = 285)<br />
Source: EXPLOREAL/Stand: 28.10.2022<br />
Projects in marketing (Marketing Start Oktober 2021)<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Projekte<br />
Projekte<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Steiermark 169 4.707 1,25 103,7<br />
Steiermark 169 4.707 1,25 103,7<br />
Bruck-Mürzzuschlag 13 227 2,3 95,2<br />
Deutschlandsberg 4 74 1,2 98,8<br />
Graz (Stadt) 62 2636 9 113<br />
Graz-Umgebung 30 712 4,4 106,2<br />
Hartberg-Fürstenfeld 8 103 1,1 98,4<br />
Leibnitz 11 313 3,6 101,6<br />
Leoben 7 98 1,7 94,5<br />
Liezen 6 76 1 95,8<br />
Murau 91,7<br />
Murtal 3 58 0,8 94,9<br />
Südoststeiermark 9 125 1,5 97,7<br />
Voitsberg 6 107 2,1 97,7<br />
Weiz 10 178 1,9 102,5<br />
Fotos: C & P Immobilien, Telegram 71, trivalue<br />
58 ImmoFokus
Completions &<br />
Pipeline<br />
Owned property Private financed rental Subsidized rental Other Other<br />
Top-3-Projects in Completion <strong>2023</strong> ff.<br />
Gate 17<br />
Smart Quadrat<br />
Jakomini Verde<br />
Completion November <strong>2023</strong><br />
8055 Graz, Triester Straße 432<br />
Developer<br />
C&P Bauträger GmbH<br />
Apartments subsidized 510<br />
Base Costs €/sqm 345<br />
Asking price €/sqm 3.872<br />
Selling price €/sqm 4.434<br />
Completion Q3 <strong>2023</strong><br />
8020 Graz, Waagner-Biro-Straße 126-134<br />
Developer<br />
Smart City Graz Wohnbau GmbH, TRIVALUE<br />
Manamagment GmbH<br />
Apartements for rent 291<br />
Owner-occupied apartment 69<br />
Base Costs €/sqm 838<br />
Asking price €/sqm 4.954<br />
Completion Q4 2024<br />
8010 Graz, Kasernstraße 24<br />
Developer<br />
Periscon GmbH, ARE Austrian Real Estate GmbH<br />
Apartments subsidized<br />
Bauherrenmodell<br />
570<br />
Base Costs €/sqm 321<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
59
Investing in Austria<br />
CARINTHIA<br />
1–2 Romm apts: 33 %<br />
3 Romm apts: 44 %<br />
4+ Romm apts: 23 %<br />
All apartments on offer (n = 1.606)<br />
With loggia: 10 %<br />
With balcony: 41 %<br />
With terrace: 53 %<br />
With garden: 33 %<br />
With open space: 96 %<br />
(loggia/balcony/terrace/garden)<br />
All apartments on offer (n = 1.729)<br />
Apartments: 93 %<br />
Terrace house/Duplex: 5 %<br />
Detached house: 2 %<br />
All residential units in EXPLOREAL (n = 7.858)<br />
Vergleich Ferienwohnungen (n = 131)<br />
ø 21 Apartments / Project<br />
Arithmetic average of suitable<br />
projects (n = 218)<br />
ø 76,4 sqm Wohnnutzfläche<br />
Median of all residential units on<br />
offer (n = 1.724)<br />
ø 19,3 sqm Freiflächen<br />
(Loggia/Balkon/Terrasse)<br />
Median of all residential units<br />
on offer (n = 1729)<br />
ø 1,76 PKW-Stellplätze / Wohnung<br />
Arithmetic average of suitable projects<br />
(n = 226)<br />
ø Land cost share: 548 €/sqm<br />
Arithmetic average of suitable<br />
projects (n = 62)<br />
Source: EXPLOREAL/Stand: 30.05.2022<br />
Projects in marketing (Marketing Start Mai 2021)<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Projekte<br />
Projekte<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Känten 91 1.765 1,04 105<br />
Känten 91 1.765 1,04 105<br />
Feldkirchen 3 18 0,6 99<br />
Hermagor 1 92,5<br />
Klagenfurt Land 18 248 4,1 100,4<br />
Klagenfurt (Stadt) 18 827 8,1 107,6<br />
Sankt Veit an der Glan 7 66 1,2 94,4<br />
Spittal an der Drau 14 162 2,1 94,3<br />
Villach Land 6 51 0,8 98,8<br />
Villach (Stadt) 15 320 5 104,1<br />
Völkermarkt 6 42 1 97,2<br />
Wolfsberg 3 31 0,6 94,4<br />
Fotos: Kollitsch Gruppe GS Visuals<br />
60 ImmoFokus
Completions &<br />
Pipeline<br />
Owned property Private financed rental Subsidized rental Other Other<br />
Top-3-Projects in Completion <strong>2023</strong> ff.<br />
Das Maxpalais<br />
Completion Februar 2024<br />
9020 Klagenfurt, Friedensgasse 20-24<br />
Developer<br />
Antares Bauträger und Beteiligungs GmbH<br />
GM Generationenpark GmbH<br />
Adris Immobilien<br />
Matrix Immobilien und Bauträger GmbH<br />
Owner-occupied apartment 105<br />
Asking price 8.211<br />
Verkauspreis 5.214<br />
Base Costs €/sqm 392<br />
Net rent 15,64<br />
Origen - Wohnen im<br />
Welzenegg<br />
Completion März <strong>2023</strong><br />
9020 Klagenfurt, Schachterlweg<br />
Developer<br />
Innovation Wohnen Nageler GmbH<br />
Apartements for rent 112<br />
Base Costs €/sqm 236<br />
Net rent €/sqm 9,46<br />
Unsereins 1<br />
Completion Q4 2024<br />
9020 Klagenfurt, Feschnigstrasse 151-181<br />
Developer<br />
KEF Bauträger<br />
Owner-occupied apartment 99<br />
Asking price €/sqm 4.640<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
61
Investing in Austria<br />
UPPER AUSTRIA<br />
1–2 Romm apts: 36 %<br />
3 Romm apts: 43 %<br />
4+ Romm apts: 21 %<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: 98 %<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 Wohnnutzfläche<br />
Median of all residential units on<br />
offer (n = 3.781)<br />
ø 8 sqm Freiflächen<br />
(Loggia/Balkon/Terrasse)<br />
Median of all residential units<br />
on offer (n = 3.383)<br />
ø 1,71 PKW-Stellplätze / Wohnung<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: 18.01.2022<br />
Completions 2020-2022 (Erster österreichischer Neubaubericht 2022)<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Projekte<br />
Projekte<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Oberösterreich 701 15.280 3,38 104<br />
Oberösterreich 701 15.280 3,38 104<br />
Braunau am Inn 61 1.043 3,27 104,7<br />
Eferding 11 151 1,51 102,8<br />
Freistadt 20 309 1,54 101,3<br />
Gmunden 57 1.273 4,15 101,8<br />
Grieskirchen 33 539 2,75 102,4<br />
Kirchdorf an der Krems 15 328 1,91 99,8<br />
Linz (Stadt) 93 3.355 5,41 109,4<br />
Linz-Land 90 1.981 4,33 108,2<br />
Perg 29 531 2,55 103,6<br />
Ried im Innkreis 26 471 2,53 100,2<br />
Rohrbach 12 178 1,05 98,4<br />
Schärding 16 272 1,58 101,2<br />
Steyr (Stadt) 11 252 2,21 101,2<br />
Steyr-Land 35 584 3,19 100,3<br />
Urfahr-Umgebung 41 644 2,49 103,8<br />
Vöcklabruck 78 1.515 3,65 103,2<br />
Wels (Stadt) 26 844 4,47 107<br />
Wels-Land 47 1.010 4,51 104,3<br />
Fotos: EbsterLiving, WIMBERGER<br />
62 ImmoFokus
Completions &<br />
Pipeline<br />
Owned property Private financed rental Subsidized rental Other Other<br />
Top-3-Projects in Completion <strong>2023</strong> ff.<br />
Wohnen im Stadtzentrum<br />
Completion Juli 2024<br />
4840 Linz, Vöcklabruck<br />
Developer<br />
„Gemeinnützige Siedlungsgesellschaft für den<br />
Bezirk Vöcklabruck<br />
Apartments subsidized rent 82<br />
Gartenstrasse<br />
Completion Q2 <strong>2023</strong><br />
4810 Ried im Innkreis, Gartenstrasse 36-38<br />
Developer<br />
Ebster Living Bauträger<br />
Gorilla Immobilien<br />
Apartements for rent 73<br />
Veichter/Hagenberg<br />
Completion <strong>2023</strong><br />
4020 Hagenberg im Mühlkreis,<br />
Schmidbauernweg<br />
Developer<br />
Wimberger Immobilien<br />
Owner-occupied apartment 25<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
63
Investing in Austria<br />
SALZBURG<br />
1–2 Romm apts: 40 %<br />
3 Romm apts: 34 %<br />
4+ Romm apts: 26 %<br />
All apartments on offer (n = 532)<br />
With loggia: 19 %<br />
With balcony: 47 %<br />
With terrace: 46 %<br />
With garden: 20 %<br />
With open space: 98 %<br />
(loggia/balcony/terrace/garden)<br />
All apartments on offer (n = 482)<br />
Apartments: 98 %<br />
Terrace house/Duplex: 2 %<br />
Detached house: 0 %<br />
All residential units in EXPLOREAL (n = 9.235)<br />
ø 21 Apartments / Project<br />
Arithmetic average of suitable<br />
projects (n = 475)<br />
ø 70,6 sqm Wohnnutzfläche<br />
Median of all residential units on<br />
offer (n = 532)<br />
ø 13,4 sqm Freiflächen<br />
(Loggia/Balkon/Terrasse)<br />
Median of all residential units<br />
on offer (n = 482)<br />
ø 1,77 PKW-Stellplätze / Wohnung<br />
Arithmetic average of suitable projects<br />
(n = 435)<br />
ø Land cost share: 989 €/sqm<br />
Arithmetic average of suitable<br />
projects (n = 114)<br />
Source: EXPLOREAL/Stand: 10.05.2022<br />
Completions 2020-2022 (Erster österreichischer Neubaubericht 2022)<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Salzburg 271 4.912 2,91 104,0<br />
Hallein 24 440 2,41 107,1<br />
Salzburg (Stadt) 57 1.290 2,77 103,2<br />
Salzburg-Umgebung 87 1.437 3,10 106,8<br />
Projekte<br />
Projekte<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Salzburg 271 4.912 2,91 104,0<br />
Sankt Johann im Pongau 44 836 3,42 102,2<br />
Tamsweg 7 91 1,50 94,8<br />
Zell am See 52 818 3,10 102,0<br />
Fotos: SIGES Salzburger Immobilien GesmbH, Myslik<br />
64 ImmoFokus
Completions &<br />
Pipeline<br />
Owned property Private financed rental Subsidized rental Other Other<br />
Top-3-Projects in Completion <strong>2023</strong> ff.<br />
Paracelsus Garten<br />
Wohnpark Thalgau<br />
Duett Moarhaus<br />
Completion Juni <strong>2023</strong><br />
5500 Bischofshofen, Josef-Leitgeb-Strasse<br />
Developer<br />
Hans Myslik Betriebs GmbH<br />
Gemeinnützige Wohn- und<br />
Siedlungsgenossenschaft „Salzburg“<br />
Apartments subsidized rent 14<br />
Apartments privately<br />
financed<br />
44<br />
Base Costs €/sqm 632<br />
Asking price €/sqm 7.578<br />
Selling price €/sqm 7.474<br />
Completion Q2 2024<br />
5304 Thalgau am Fuschlsee<br />
Developer<br />
SIGES Salzburger Immobilien GesmbH<br />
Apartements for rent 10<br />
Apartments privately<br />
financed<br />
70<br />
Base Costs €/sqm 614<br />
Asking price €/sqm 5.682<br />
Selling price €/sqm 5.379<br />
Completion Q3 2024<br />
5111 Bürmoos, Moarhaugasse<br />
Developer<br />
gswb - Gemeinnützige Salzburger<br />
Wohnbaugesellschaft mbH<br />
Owner-occupied apartment 41<br />
Base Costs €/sqm 245<br />
Asking price €/sqm 5.297<br />
Selling price €/sqm 4.973<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
65
Investing in Austria<br />
TYROL<br />
1–2 Romm apts: 35 %<br />
3 Romm apts: 43 %<br />
4+ Romm apts: 22 %<br />
All apartments on offer (n = 1.193)<br />
With loggia: 6 %<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 21 Apartments / Project<br />
Arithmetic average of suitable<br />
projects (n = 600)<br />
ø 75 sqm Wohnnutzfläche<br />
Median of all residential units on<br />
offer (n = 1.240)<br />
ø 13,3 sqm Freiflächen<br />
(Loggia/Balkon/Terrasse)<br />
Median of all residential units<br />
on offer (n = 1.239)<br />
ø 1,67 PKW-Stellplätze / Wohnung<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: 17.09.2021<br />
Completions 2020-2022 (Erster österreichischer Neubaubericht 2022)<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Tirol 424 7828 3,41 106,5<br />
Imst 38 506 2,77 103,7<br />
Innsbruck-Land 103 1.872 3,43 108,1<br />
Innsbruck-Sadt 52 1.418 3,6 113,3<br />
Kitzbühel 38 484 2,49 101,1<br />
Kufstein 63 1383 4,15 109,1<br />
Projekte<br />
Projekte<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Tirol 424 7828 3,41 106,5<br />
Landeck 27 492 3,69 100,4<br />
Lienz 22 317 2,17 96,3<br />
Reutte 16 315 3,17 101,5<br />
Schwaz 65 1.041 4,1 105,8<br />
Fotos: Pendlarchitects, beaufort Architekten ZT,<br />
66 ImmoFokus
Completions &<br />
Pipeline<br />
Owned property Private financed rental Subsidized rental Other Other<br />
Top-3-Projects in Completion <strong>2023</strong> ff.<br />
Bichlinger Strasse 89<br />
Innsbruck Pradler Saggen<br />
T 459 Integrationshaus<br />
Completion März 2024<br />
6363 Westendorf, Bichlinger Strasse 89<br />
Developer<br />
Neue Heimat Tirol - Gemeinnützige<br />
WohnungsGmbH<br />
Owner-occupied apartment 33<br />
Apartments subsidized rent 17<br />
Base Costs €/sqm 419<br />
Net rent €/sqm 6,81<br />
Asking price €/sqm 4.262<br />
Completion Q1 2024<br />
6063 Rum, Steinbockallee<br />
Developer<br />
Neue Heimat Tirol - Gemeinnützige<br />
WohnungsGmbH<br />
Apartements for rent 151<br />
Completion Q3 <strong>2023</strong><br />
6020 Innsbruck, Gumppstrasse 71<br />
Developer<br />
Aplenländische Gemeinnützige WohnbauGmbH<br />
Apartments subsidized rent 73<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
67
Investing in Austria<br />
VORARLBERG<br />
Completions 2020-2022 (Erster österreichischer Neubaubericht 2022)<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Vorarlberg 281 4868 4,04 106,1<br />
Bludenz 28 415 2,15 101,2<br />
Bregenz 80 1.374 3,38 106,4<br />
Projekte<br />
Projekte<br />
WE<br />
WE/<br />
1.000<br />
EW*<br />
Bev´.<br />
Prog.<br />
2030**<br />
Vorarlberg 281 4868 4,04 106,1<br />
Dornbirn 64 1.295 4,77 109,2<br />
Feldkirch 109 1784 5,45 105,9<br />
Fotos: Haberl Baugesellschaft, Wohnbauselbsthilfe Vorarlberger gem. reg. Gen.m.b.H., Rhomberg<br />
68 ImmoFokus
Completions &<br />
Pipeline<br />
Owned property Private financed rental Subsidized rental Other Other<br />
Top-3-Projects in Completion <strong>2023</strong> ff.<br />
Drei Häuser in Vorach<br />
Completion September <strong>2023</strong><br />
6890 Lustenau, Vorachstrasse 62+62a-b<br />
Developer<br />
Wohnbauselbsthilfe Vorarlberger gemeinnützige<br />
Gen.m.b.H.<br />
Bludenz Quartier Brunnenbach<br />
Completion Q4 2022<br />
6700 Bludenz, Wichnerstrasse<br />
Developer<br />
Haberl Baugesellschaft<br />
Wohnen an der Furt<br />
Completion Q2 2025<br />
6850 Dornbirn, Rohrbach<br />
Developer<br />
Rhombergbau Bau GmbH<br />
Owner-occupied apartment<br />
gefördert<br />
55<br />
Owner-occupied apartment<br />
frefinanziert<br />
42<br />
Apartments privately<br />
financed<br />
42<br />
Asking price €/sqm 5.359<br />
Selling price €/sqm 4.808<br />
Base Costs €/sqm 1.452<br />
Asking price €/sqm 6.289<br />
Base Costs €/sqm 1.777<br />
Asking price €/sqm 7.305<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
69
Investing in Austria<br />
ImmoFokus asks …<br />
... … and real estate experts answered. The real estate market is in upheaval. Rising interest rates, high<br />
construction costs and almost exploding energy costs, accompanied by tighter lending policies, have the real<br />
estate industry firmly in their grip. But what do the real estate professionals think? We asked the local experts.<br />
Questions:<br />
1<br />
How optimistic or pessimistic are you going into the new year?<br />
Which asset class will be the favorite for investors in <strong>2023</strong>?<br />
2<br />
What do you see as the<br />
biggest challenges this year?<br />
3<br />
Rising interest rates and construction<br />
costs and almost exploding energy<br />
costs, accompanied by tighter lending<br />
regulations – the real estate market party<br />
is over for the time being. How would<br />
the parameters have to change to get<br />
the party going again?<br />
4<br />
What three issues will have the most significant impact<br />
on the real estate industry in <strong>2023</strong>?<br />
5<br />
What are the plans and goals for your company in <strong>2023</strong>?<br />
70 ImmoFokus
1<br />
At present we are optimistic about the new year in all situations and market<br />
phases. Even if the outlook is perhaps somewhat gloomier as a result of<br />
macroeconomic developments, pessimism would be exaggerated and also<br />
inhibiting. Regarding asset classes, logistics real estate, among others, was<br />
again very much in demand last year. We expect this trend to continue.<br />
But also the asset class “residential” is a classic investor favorite due to the<br />
stability of the Austrian market and the segment. The main reason for the<br />
partially collapsed transaction density in the large-volume area was the<br />
fact that the price expectations between buyers and sellers (still) differ<br />
significantly in some cases. Some consolidation is expected here in <strong>2023</strong>.<br />
2<br />
Helmut Beer,<br />
TPA<br />
From a consultant’s perspective, we are currently experiencing a certain<br />
tension between financing costs on the one hand and expected sales<br />
returns on the other. These diverging expectations will probably continue<br />
to be a significant challenge. On the seller side, expiring financing could<br />
be a task to be solved. Also, capacity limitations and cost increases -<br />
e.g., in material (supply chains), personnel or energy costs - will play a<br />
decisive role. Last but not least, other forms of investment have become<br />
more attractive in the meantime, which will also have interesting effects.<br />
3<br />
A party is actually only ever over when all the guests have left.<br />
However, this does not seem to be the case in the real estate<br />
market at the moment, so we assume that the party on the<br />
real estate market is not over but that it will perhaps continue<br />
somewhat subdued at the moment. As far as the parameters<br />
are concerned, I think it will be the interplay of all the factors<br />
that will settle down in the short to medium term.<br />
4<br />
In view of the current situation, it is<br />
often apparent that above all<br />
- ESG criteria and environmental aspects,<br />
- efficiency (e.g., energy) and<br />
- interest rate development<br />
will play a decisive role.<br />
5<br />
As in previous years, in <strong>2023</strong> we will continue to<br />
provide all of our clients with the best possible<br />
personal support on all issues relating to taxes and<br />
financing in the real estate sector, from transaction to<br />
ongoing support. We also will continue reporting on<br />
all news and changes with our tax services (newsletters,<br />
webcasts, etc.). Finally, we will increasingly advise<br />
clients in the context of the digital transformation and<br />
all activities related to ESG. There will be an enormous<br />
demand for this service in the coming periods and<br />
clients are already increasingly asking for it.<br />
Within the TPA Group, we will continue to pursue<br />
the goal of consistently implementing ESG and EU<br />
taxonomy topics within the company and offer our<br />
employees secure, varied and promising job prospects.<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
71
Investing in Austria<br />
1<br />
<strong>2023</strong> will definitely be a challenging year for the real estate industry; personally, I am<br />
optimistic! Interest rate developments and inflationary events have put the brakes<br />
on market activity - and further interest rate steps are expected. Adjustments to this<br />
situation will still take some time and therefore the question of favorite asset classes<br />
cannot be answered with any certainty at the moment.<br />
Astrid Grantner-Fuchs,<br />
EHL Immobilien Bewertung<br />
4<br />
2<br />
The changed interest rate environment<br />
with all the associated developments<br />
is undoubtedly the key challenge - in<br />
addition to real estate investments, other<br />
investments have also become more<br />
attractive again, and the capital market is<br />
reorienting itself accordingly.<br />
Rising interest rates, the development of inflation<br />
with increasing prices in all possible areas of life<br />
and a continuing tense geopolitical situation will<br />
continue to occupy us and harbor imponderables<br />
and uncertainty - and this affects those actively<br />
involved in the industry as well as the consumers<br />
or final users.<br />
3<br />
A mindset that is forward-oriented and<br />
less nostalgic about the past - hoping that<br />
“things will go back to the way they were” is<br />
definitely too simplistic.<br />
5<br />
As the Austrian market leader in real<br />
estate valuation, we want to continue to<br />
be a reliable partner for our customers,<br />
especially in such challenging times.<br />
We will maintain our solid growth<br />
course of the past years and see<br />
ongoing training and qualification of<br />
our team as an essential requirement.<br />
In addition, our proximity to the<br />
market helps us even more now to<br />
provide well-founded valuations.<br />
72 ImmoFokus
1<br />
According to some predictions, <strong>2023</strong> is going to be a challenging year. Even without gazing into the magic<br />
crystal ball, I think we can all agree that the current circumstances will continue to affect all our (working)<br />
lives. Nevertheless, I am optimistic about the year <strong>2023</strong> - on the one hand, because we are well positioned as<br />
BUWOG, and on the other hand, because the year offers us the opportunity to scrutinize and, if necessary,<br />
optimize processes and strategies. We will also use the time to bring some projects in our development<br />
pipeline to construction readiness so that we can continue building directly as soon as the situation has<br />
somewhat eased.<br />
Although investors are currently somewhat more reluctant to buy residential real estate, I am confident that<br />
this situation will soon change again, partly due to a forthcoming easing of financing conditions - residential<br />
real estate therefore continues to be a good and secure form of investment in my view.<br />
Andreas Holler,<br />
Buwog Group<br />
2<br />
One factor of uncertainty that will accompany<br />
us in <strong>2023</strong> is the question of how the<br />
market will develop in terms of recovery.<br />
The current situation is that institutional<br />
investors have become temporarily more<br />
cautious. At the same time, owner-occupiers<br />
with the necessary financial resources continue<br />
to show a high level of interest in new<br />
apartments. The current strictly regulated<br />
financing conditions and the smoldering<br />
interest rate uncertainty are causing the<br />
financing process to drag on - but more light<br />
should be shed on this soon and more accessible<br />
lending to get the market moving again.<br />
3<br />
I see a lot of potential to revive the current somewhat tense market<br />
situation - as developers, however, we will soon reach our limits, even<br />
if we can achieve cost optimization in new construction; for example,<br />
through modular construction, the use of resource-saving materials, and<br />
a focus on digitization throughout the value chain and in the interests<br />
of our customers. However, Housing <strong>2023</strong> is likely to be much more of<br />
a challenge for policymakers. In my opinion, they could intervene at<br />
the right moment to promote the development of new housing and at<br />
the same time contribute to easing the price situation. This includes<br />
accelerating the issuing of permits and the completion of classification<br />
procedures but also funding programs for decarbonization and<br />
climate protection measures. Sustainability has become a key issue in<br />
residential construction, and it must be ensured that new, sustainable<br />
housing is affordable for most of the society in the future.<br />
4<br />
In a nutshell: sustainability, digitization, and in connection with this: cost optimization.<br />
5<br />
We want to continue our growth course of recent years. To achieve this, we are relying on new ways of thinking and finding solutions and are<br />
using the time to think outside the box. Although BUWOG is broadly and securely positioned as a full-service provider in Austria, we intend<br />
to respond to the changing market conditions and adjust our business model in order to expand our competitive advantages further. We will<br />
address the issue of sustainability in the portfolio with a renovation offensive: thermal renovations and the conversion to modern heating<br />
systems in several hundred apartments are planned here. In addition, despite the current circumstances, we are pleased to be able to bring<br />
more than 650 new apartments onto the market this year, thus ensuring a quality offering for apartment seekers in Vienna. Although there<br />
will be no new construction starting in <strong>2023</strong>, we will not be sitting still: Our goal is therefore to do everything necessary to be able to resume<br />
our development activities as quickly as possible seamlessly. Here we can access an extensive portfolio of properties that we can continue<br />
planning and bring into development by then. Overall, BUWOG will push the further general development of the organization - we want to<br />
become more digital and efficient and thus create an improved customer experience and increase the satisfaction of our employees even more.<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
73
Investing in Austria<br />
1<br />
We are a thoroughly optimistic company - crises create new challenges, which bring new<br />
ideas, new approaches, and new solutions. Vienna had an increase in the population of over<br />
50,000 people last year, and due to high construction costs and subsidized housing rates,<br />
much less is being built than is necessary. For investors, therefore, the residential asset class<br />
is still very interesting - especially if the challenges of home offices were taken into account<br />
when planning the apartments<br />
2<br />
Innovation, creativity and of course, ESG - implementing<br />
routines to translate our data into numbers is our focus. Of<br />
course, this is only alongside our desire to develop the best<br />
buildings for specific properties.<br />
4<br />
Wolfdieter Jarisch,<br />
S+B Gruppe<br />
Even more so than in recent years: Quality,<br />
exclusivity, innovation, environmental protection.<br />
3<br />
We leave the partying to others; we see opportunities in challenging<br />
times to develop new concepts and realize new innovative ideas.<br />
We celebrate first and foremost with our employees to thank them<br />
for their immeasurable commitment - this is an essential part of<br />
our corporate philosophy, which is also why many of them have<br />
been working for us for over 16 years on average.<br />
5<br />
To bind our employees further and even closer together into<br />
an S+B family because together we are (almost) unbeatable!<br />
And, of course, the topic of children’s rights - now legally<br />
required by ESG - will demand a lot from us.<br />
74 ImmoFokus
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<strong>MIPIM</strong> | <strong>2023</strong><br />
75
Investing in Austria<br />
1<br />
I am both optimistic and pessimistic.<br />
Pessimistic because I believe that the interest rate rally is not yet over and that<br />
interest rates will continue to rise. Inflation will be with us for longer than most<br />
think, and energy costs in particular will remain at a high level after a brief period<br />
of relief. At the same time, I am also optimistic because I believe that many who<br />
bought their properties with borrowed capital will run into budgetary difficulties.<br />
This creates opportunities for our involvement in the market and good purchases.<br />
However, these purchases require the right timing, and you also need the necessary<br />
equity. We have that, and that’s why I’m optimistic that we’ll be able to find and take<br />
advantage of good opportunities next year, especially in the second half of the year.<br />
3<br />
Daniel Jelitzka,<br />
JP Immobilien<br />
2<br />
We will continue to implement the ESG and make sure that all existing and new<br />
projects comply with ESG requirements and EU taxonomy in order to make our<br />
contribution to the necessary environmental goals.<br />
We are operating in a challenging capital market, which means the value of capital is<br />
high. Therefore, one must have the necessary capital need when opportunities arise.<br />
4<br />
Those would be interest rates, then<br />
inflation and energy prices, and finally<br />
the available liquidity of buyers. 5<br />
The party won’t be back anytime soon. But<br />
the market will become more dynamic if<br />
some parameters develop positively. For<br />
this to happen, the Euribor should settle at<br />
a tolerable level, let’s say at 200 basis points.<br />
Inflation would have to fall to the EU target<br />
of 250 basis points, and energy costs should<br />
not be higher than twice the pre-crisis level.<br />
Then there will be a positive mood on the<br />
market again, and that is ultimately a very<br />
important parameter for good economic<br />
development.<br />
We will continue to follow our path consistently.<br />
That means reacting flexibly to the market and<br />
ensuring that we have enough equity “in our petty<br />
cash” to take advantage of opportunities that come<br />
our way at the right time.<br />
76 ImmoFokus
1<br />
The first half of the year will undoubtedly be characterized by a wait-and-see attitude. The<br />
big question is whether the markets can adjust to the multiple crises, which I assume they<br />
will. We are already hearing cautiously positive signals from Germany. It cannot be ruled<br />
out that the situation will improve considerably as early as the second quarter. I think <strong>2023</strong><br />
will be the year of opportunities across all asset classes. The downward trend at Zoom, the<br />
video conferencing provider, suggests that office real estate might positively surprise us.<br />
2<br />
A significant issue will be rapidly rising rents due to inflation,<br />
both residential and commercial, as well as rising operating<br />
costs. Priority goals must therefore be to curb inflation and<br />
stabilize energy prices. The dependence on Russian gas in<br />
Austria and Germany must be reduced rapidly. However,<br />
the challenges posed by the incipient retirement wave of<br />
the baby boomer generation must also not be overlooked.<br />
4<br />
1. the interest rate level<br />
2. requirements for private loans<br />
3<br />
Developments pertaining to interest<br />
rate levels and inflation need to become<br />
reasonably predictable again. The<br />
opinions of experts, some of which diverge<br />
considerably, point to uncertainty that<br />
is making investors cautious. Ultimately,<br />
however, investment pressure remains<br />
high and real estate is still a safe investment,<br />
this will not change. There may be a slight<br />
consolidation in the coming months, but<br />
I do not expect a collapse. We don’t have<br />
a real estate crisis but multiple external<br />
crises that have shaken the overall<br />
structure<br />
3. inflation and construction costs<br />
5<br />
Mark Krenn,<br />
Cerha Hempel<br />
True to our guiding principle, ‘Quality matters!’ we want to continue on our<br />
growth path with the highest quality standards and customer satisfaction.<br />
This year, we are also devoting more attention to sustainability in all<br />
areas. We are also continuously evaluating and implementing legal tech<br />
tools to increase our efficiency in providing legal advice.<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
77
Investing in Austria<br />
1<br />
The year <strong>2023</strong> will certainly be a very exciting year for the investment market due to<br />
the many challenges. Nevertheless, we are optimistic about the year, as challenging<br />
times always offer opportunities that need to be identified and exploited. With regard<br />
to the question of the most popular asset class in <strong>2023</strong>, it is still too early to venture a<br />
forecast here. At the moment, many investors are focusing on asset classes that have<br />
fundamentally strong demand from occupiers, such as residential, logistics and prime<br />
offices.<br />
2<br />
3<br />
Markus Mendel,<br />
EHL Investment Consulting<br />
The end of the ECB’s zero interest rate policy, which<br />
was initiated in the middle of last year due to the sharp<br />
rise in inflation, and the gradual interest rate increases<br />
that have continued to this day are certainly the biggest<br />
challenges that will demand quite a bit from market<br />
participants. In addition, high construction costs, supply<br />
bottlenecks, high energy prices and a very cautious<br />
financing environment on the part of banks continue to<br />
exacerbate the situation.<br />
One thing is clear in any case, simply turning back the wheel is not possible!<br />
It is necessary to find new ways to cope with the current situation and still be<br />
successful on the market. This will certainly pose a great challenge to one or<br />
the other market participant, but those who are financially sound and use the<br />
available potential will be able to dive through the existing trough. When there<br />
is clarity again regarding the interest rate situation on the capital markets, the<br />
currently prevailing restraint of investors will ease, and the market will settle at<br />
a new level.<br />
4<br />
The further development of the interest rate<br />
landscape, all topics around ESG and EU taxonomy<br />
as well as the general inflation, especially in the area<br />
of energy and construction costs are the topics that<br />
have a huge impact on the real estate industry and<br />
will have a positive or negative effect on market<br />
events depending on the development.<br />
5<br />
In such a volatile market phase, it is important to be very close to what is<br />
happening in the market, to identify potential opportunities at an early<br />
stage and to manage risks. It is our goal to continue to expand EHL’s market<br />
leadership in <strong>2023</strong> and to initiate the best possible transactions for our clients.<br />
With our long-standing team of dedicated and well-connected investment<br />
experts, we will certainly succeed in doing so. Therefore, we have already<br />
started the new year with full commitment and a good pinch of optimism.<br />
78 ImmoFokus
1<br />
We have all become more cautious about forecasts due to the events of the last<br />
few years. But we are optimistic - partly because 2022 was a very successful<br />
year for us. After all, we showed an 18% increase in sales. This assures us that<br />
there is an increasing need for current and valid data, especially in volatile<br />
times. In <strong>2023</strong>, we will therefore continue to invest in the area that ensures<br />
transparency and stability in the market: real estate data.<br />
2<br />
Our data shows: in 2022, the number of registered properties decreased by about 11%.<br />
Of course, if fewer are being bought or sold, property prices may fall as well in some<br />
places. However, this is not yet reflected in the transaction data currently available.<br />
How the development will continue depends on several economic (energy), political<br />
and ecological factors. I think that this year, in addition to general market factors, we<br />
will also have to deal with new regulations within the industry, such as the proposed<br />
change in who covers the broker costs in a property transaction (das Bestellerprinzip).<br />
Roland Schmid,<br />
IMMOunited<br />
3<br />
I wouldn’t say the party is over,<br />
but a wait-and-see attitude and<br />
uncertainty are already apparent.<br />
This is why it is so essential that<br />
relevant market information<br />
continues to be available. Because<br />
only then can well-founded<br />
business decisions be made. This<br />
in turn creates security - even in<br />
challenging times. If the economic<br />
situation also stabilizes to some<br />
extent again, nothing will stand in<br />
the way of a pleasant and secure<br />
mood, despite possible changes in<br />
the general conditions.<br />
4<br />
I think that long-term developments<br />
in particular, such as technological<br />
progress, social trends and climate<br />
change will have a strong impact on<br />
the market. These are definitely not<br />
new topics, but they are precisely<br />
those that bring with them the<br />
greatest potential for change.<br />
5<br />
We have now been on the market for more<br />
than 15 years, have established IMMOunited<br />
and have made a name for ourselves. That’s<br />
a good starting point, of course. But we also<br />
need to consolidate our market-leading<br />
position consistently. That’s why we are<br />
focusing more on research and innovation<br />
this year and investing a substantial amount<br />
in product development - both internally<br />
and externally. In addition to extensive<br />
innovations in our existing services, there<br />
are also numerous other ideas, some of<br />
which we are pursuing together with<br />
universities. This is particularly important<br />
to us because innovation secures the future.<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
79
Investing in Austria<br />
1<br />
Given the prevailing conditions, it is difficult to say whether optimism or pessimism is<br />
appropriate. Since I am personally always optimistic, I will approach <strong>2023</strong> with optimism as<br />
well. In any case, <strong>2023</strong> will be exciting, especially as it is still difficult to predict how the interest<br />
rate situation and inflation will develop. However, I am convinced that the real estate industry<br />
will show the creativity necessary for successful projects, especially in difficult times. In my<br />
opinion, predicting which asset classes will come up as winners is difficult. Only logistics will<br />
remain highly in demand, in my view.<br />
2<br />
The biggest challenge I see is the confluence<br />
of several unfavorable circumstances,<br />
such as rising interest rates,<br />
high inflation, increased energy prices,<br />
more restrictive lending (KIM-VO) and<br />
high construction prices. As a result, a<br />
corresponding level of uncertainty and<br />
restraint can be perceived in the market.<br />
Another major challenge will be the<br />
higher equity requirement for project<br />
financing.<br />
3<br />
Peter Fassl,<br />
HSP<br />
It is important that the parameters that are currently difficult to predict (interest<br />
rates, inflation) become predictable and assessable again for market participants.<br />
Only then will it be possible to calculate projects reliably again, which will<br />
ultimately lead to investors becoming more active as well.<br />
4<br />
Interest rates, inflation and<br />
sustainability (taxonomy, ESG).<br />
5<br />
We attach great importance to high-quality<br />
and personal advice for our clients. We have<br />
always strived to improve this in the past.<br />
This will not change in <strong>2023</strong>.<br />
80 ImmoFokus
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IST COOLER.“<br />
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<strong>MIPIM</strong> | <strong>2023</strong><br />
81
Investing in Austria<br />
1<br />
This year has already started very positively for us, as the demand for<br />
office and logistics space in Vienna AirportCity continues to be strong,<br />
and we have already been able to attract several new international<br />
companies to our location. In particular, the demand for modern<br />
logistics space and land very often exceeds the available supply.<br />
2<br />
The rising interest rates and construction costs are one concern. Due to the war<br />
events in Ukraine, the continuing international tensions have also led to changes<br />
and uncertainties on the real estate market. The players in the real estate sector<br />
will have to react to those two factors.<br />
3<br />
I am convinced that all of the above factors need<br />
to calm down, as they are having a negative<br />
impact not only on the real estate sector, but on<br />
our entire society. Therefore, countermeasures<br />
by all key stakeholders are urgently needed to<br />
ensure sufficient construction activity and, thus,<br />
a secure supply of living and working space.<br />
5<br />
4<br />
Wolfgang Scheibenpflug,<br />
Flughafen Wien<br />
Inflation trends, ESG and construction cost increases can be considered as<br />
the three most important issues. These three factors in particular will lead<br />
to rapid and necessary changes within the industry.<br />
This year, we will continue to push the<br />
expansion of Vienna AirportCity with great<br />
commitment. For example, we are looking<br />
forward to the groundbreaking ceremony for<br />
the new “Vienna House Easy” hotel in the fall.<br />
This will provide our customers with over 1,400<br />
hotel rooms, directly at the location in three<br />
hotels, from spring 2025. However, we also<br />
want to further expand our range of modern<br />
office space to meet the high demand in the<br />
future. Concrete plans for an “Office Park 5” are<br />
already well advanced.<br />
82 ImmoFokus
1<br />
Only optimists succeed. As a real estate consultancy that does<br />
not specialize in just one area, such as transaction business, for<br />
instance, we do not see a slump in demand for our services but<br />
rather a shift within our service portfolio. The favorites of investors<br />
in all asset classes will be sustainable properties in particular, but<br />
also those that can be developed there with realistic outlay.<br />
2<br />
Considering that the prime rate is currently at 3%, some business models or real<br />
estate investments simply no longer pay off from an investor’s point of view, and<br />
company values are also falling. Refinancing costs for bonds are also only possible<br />
at significantly higher coupon rate than a year ago, making capital market<br />
financing more complex and more expensive. In any case, the biggest challenge in<br />
<strong>2023</strong> will be to ensure the robustness of the respective business models.<br />
4<br />
3<br />
The wild party is over, but the music is still playing. The current<br />
financing situation is nothing new; rather, we are back to the<br />
regular interest rate situation we were used to for decades. We<br />
were simply too spoiled in recent years and now have to plan more<br />
efficiently again and make well-considered purchases.<br />
Due to the current situation on the transaction market and the capital market,<br />
companies will have to focus much more on the real estate itself again and work<br />
on the properties to make them climate-ready as well as transaction-ready. The<br />
due diligence phases are becoming longer again, and more minor issues that<br />
were considered insignificant in recent years are once again being negotiated<br />
more intensively in transactions. Additionally, the key topics for <strong>2023</strong> are the<br />
ESG, digitization of asset management and portfolio management data, and<br />
more substantial stakeholder dialogue.<br />
5<br />
Marius Richter,<br />
PwC<br />
In <strong>2023</strong>, we want to further expand our<br />
PwC Real Estate platform to broaden<br />
our full-service offering. The platform<br />
comprises real estate lawyers, tax advisors,<br />
auditors and business consultants<br />
specializing in the sector. We want to work<br />
together with the industry on intelligent<br />
and smart ESG solutions and jointly<br />
promote standardization in this area.<br />
In my opinion, there are still too many<br />
and too few coordinated solutions and<br />
measurement criteria within the industry.<br />
We want to work on more transparent<br />
and uniform guidelines, especially with<br />
the interest groups of the real estate<br />
industry and contribute our ESG knowhow.<br />
Working together is the only way to<br />
manage the energy transition in the real<br />
estate industry.<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
83
Investing in Austria<br />
1<br />
From an investor’s point of view, residential real estate will continue to be the focus as an asset<br />
class in <strong>2023</strong>, with a strong emphasis on location and sustainability. Demand has decreased<br />
significantly, but at the same time, due to high construction costs, supply is also reducing, and<br />
fewer construction projects are being realized. Some planned new construction projects are being<br />
postponed while expanding and refurbishing existing properties is gaining importance. In the<br />
case of office properties, it is clear that despite changes in working environments and adapted<br />
office concepts, the office remains central to the exchange of ideas and good cooperation between<br />
employees. Therefore, the following applies more than ever for both asset classes: an attractive<br />
and central location and convenient accessibility will prevail on the market.<br />
Günther Sturm,<br />
AKS<br />
2<br />
The real estate sector is currently facing several of challenges: high<br />
construction and energy costs, the interest rate situation, and stricter<br />
lending guidelines are significant obstacles on the domestic real estate<br />
market - those factors that will create a noticeable impact in <strong>2023</strong> that<br />
only increasingly stabilize in the second half of the year. Nevertheless,<br />
it is still true that real estate remains an attractive asset class, especially<br />
given of the sharp increase in rent due to inflation. ESG factors and the<br />
Taxonomy Regulation also continue to gain relevance for the real estate<br />
sector. Energy-efficient building designs that integrate geothermal solutions,<br />
PV systems, and sustainable materials such as aluminum and steel<br />
are standard, with no way around it for the entire construction industry.<br />
4<br />
The entire construction industry faces the task of<br />
significantly reducing the carbon footprint of new<br />
constructions and existing buildings. Energy-optimized<br />
concepts, as well as the use of more renewable energies<br />
and sustainable materials such as aluminum and<br />
steel have priority and will continue to shape the real<br />
estate industry this year. Alukönigstahl has already<br />
been focused for a while on future-oriented products<br />
and services that actively promote climate-friendly<br />
construction. Above all, implementing processes towards<br />
circular construction - for example, with the cradle-tocradle<br />
approach in our Schüco aluminium systems is a<br />
trend-setting sign against a resource-intensive linear<br />
economy. In addition, aluminum and steel have a long<br />
service life and an exceptionally high recycling potential<br />
- in some cases, up to 100 percent.<br />
5<br />
3<br />
The current economic mood in Austria will only<br />
brighten up slowly in <strong>2023</strong> and will also be transferred<br />
to the construction and real estate industry with<br />
some delay. The sharp rise in financing costs and<br />
construction prices combined with high inflation<br />
will require further measures - such as increased<br />
subsidies or relief through adjusted specifications.<br />
This is offset by the explicit goal of constructing<br />
smart and climate-friendly buildings with high<br />
functionality and open spaces that also ensure costefficient<br />
operation. <strong>2023</strong> will therefore lead to a<br />
balance, and the market will adapt and consolidate.<br />
One of our highlights is BAU <strong>2023</strong>, which is taking place<br />
again this year after a four-year break. We are taking the<br />
opportunity to meet face-to-face with customers and<br />
partners from all our markets and are looking forward to<br />
presenting Schüco’s and Jansen’s product innovations in<br />
Munich. In addition, we will focus on sustainability, and<br />
we devote more attention to digitalization. As a team with<br />
the necessary expertise, we will continue to forge ahead<br />
with sustainable innovation and technologies in the areas<br />
of design, health, safety and energy efficiency - from smart<br />
planning, construction and operation to highly functional<br />
façades and window solutions with integrated ventilation<br />
systems or accessibility in windows, doors and sliding doors.<br />
84 ImmoFokus
1<br />
As I am a fundamentally optimistic person, I am pretty positive about this year. In challenging<br />
times, it’s essential to think in a more complex manner and in new directions to take advantage<br />
of the opportunities these times can bring. Identifying the investor’s favorite for this year is still<br />
difficult for me from the current perspective, as the interest rate situation and inflationary events<br />
will still have a lasting impact on this topic.<br />
2<br />
In addition to identifying the opportunities<br />
to emerge from the crisis stronger,<br />
ESG in real estate is undoubtedly one of<br />
the main topics in <strong>2023</strong>. Of course, this is<br />
in addition to our main goal of providing<br />
the best possible support to our customers<br />
in their search for the perfect office<br />
and retail space. This is the most essential<br />
task for this year in the current market<br />
environment, where we are faced<br />
with very low production of new space.<br />
Stefan Wernhart,<br />
EHL Gewerbeimmobilien<br />
3<br />
In commercial leasing, times have<br />
been turbulent for a bit longer since the<br />
COVID-19 pandemic. We have used the time<br />
intensively to position ourselves in the best<br />
possible way in all areas. In the challenging<br />
economic environment, we are even closer<br />
to our customers in order to accompany<br />
them in all matters and to jointly develop<br />
innovative and target-oriented solutions.<br />
4<br />
For me, the topics of<br />
sustainability, the further<br />
development of inflation,<br />
especially concerning energy<br />
and construction costs, and<br />
quality - whether in services<br />
or the development of real<br />
estate - are the cornerstones<br />
that will accompany us very<br />
intensively this year.<br />
5<br />
In difficult times, it is all the more important to thank our<br />
employees for their tireless efforts to date and to bind<br />
them even more strongly to the company so that together<br />
we can emerge from this challenging, temporary phase<br />
motivated and strengthened. In addition, it is of course<br />
our essential ambition to maintain our outstanding<br />
performance in the area of commercial leasing, which<br />
we have been able to achieve thanks to our long-standing<br />
and loyal customers and to expand this even further by<br />
going the extra mile with our employees.<br />
<strong>MIPIM</strong> | <strong>2023</strong><br />
85
IMPRESSUM<br />
Vorschau<br />
Lesen Sie im ImmoFokus<br />
Ausgabe 02/<strong>2023</strong><br />
Finanzierung. Das große Interview mit ... Zu Tisch mit<br />
... Einfluss von ESG und EU-Taxonomie; Strukturierte<br />
Finanzierungen; Restrukturierungen; Non-Performing Loans;<br />
Vorteile von Mezzanine-Finanzierungen; Finanzieren über<br />
die Crowd; Blockchain in der Immobilienwirtschaft; Software<br />
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Gerätemanagement; Baustellenlogistik, die große<br />
ImmoFokus Umfrage ...<br />
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Rollett sowie die Kommentatoren<br />
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ERSCHEINUNGSTERMIN: April <strong>2023</strong><br />
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Der IMMOFOKUS wendet sich im Sinne der<br />
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ImmoFokus ist Mitglied bei:<br />
86 ImmoFokus
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New at <strong>MIPIM</strong> <strong>2023</strong>! The Road to Zero area<br />
<strong>MIPIM</strong> <strong>2023</strong><br />
14-17 MARCH <strong>2023</strong><br />
CANNES, FRANCE<br />
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Greater Impact.<br />
Stronger Business.<br />
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A new dedicated 400 sqm zone to help<br />
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towards a more sustainable model.<br />
Exhibition<br />
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Conferences on the new «Road to Zero<br />
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Ausgabe 01|<strong>2023</strong><br />
88
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Ausgabe 01|<strong>2023</strong><br />
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