Commercial Real Estate - Austria | Statista Market Forecast

The Commercial Real Estate market market in Austria is projected to reach US$560.80bn by 2024.
This market is expected to show an annual growth rate (CAGR 2024-2029) of 1.24%, resulting in a market volume of US$596.40bn by 2029.
When compared globally, the United States is anticipated to generate the highest value in the Real Estate sector, with US$25.3tn in 2024.
Austria's commercial real estate market is experiencing a surge in demand for office spaces in Vienna's city center.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Austria is experiencing steady growth and development in recent years. Customer preferences have shifted towards modern and sustainable office spaces, while the market is also influenced by local special circumstances and underlying macroeconomic factors. Customer preferences in the Austrian Commercial Real Estate market have evolved to prioritize modern and sustainable office spaces. Companies are increasingly seeking office spaces that are equipped with the latest technology, energy-efficient features, and flexible layouts to accommodate changing work styles. This shift in preferences is driven by the need to attract and retain top talent, as well as the growing awareness of the environmental impact of buildings. As a result, developers and investors are focusing on constructing and renovating office buildings that meet these requirements. Trends in the Austrian Commercial Real Estate market reflect the global shift towards flexible working arrangements. The rise of remote work and the increasing adoption of flexible office spaces have led to a growing demand for coworking spaces and serviced offices. This trend is particularly prominent in major cities like Vienna, where startups and freelancers are driving the demand for flexible workspaces. Additionally, the market is witnessing a surge in demand for mixed-use developments that combine office spaces with retail, residential, and recreational facilities. These developments cater to the desire for convenience and work-life integration among employees. Local special circumstances also play a role in shaping the Commercial Real Estate market in Austria. The limited availability of land in major cities, such as Vienna, has led to a focus on urban infill projects and the redevelopment of existing properties. This has resulted in the transformation of former industrial sites and historical buildings into modern office spaces. Furthermore, strict regulations and building codes in Austria ensure high-quality construction and sustainable practices, which further contribute to the market's development. Underlying macroeconomic factors have also influenced the growth of the Commercial Real Estate market in Austria. The country's stable economy, low interest rates, and favorable investment climate have attracted both domestic and international investors. The strong presence of multinational corporations and the country's central location within Europe have further contributed to the demand for office spaces. Additionally, Austria's commitment to renewable energy and sustainable development has created opportunities for green building projects, which align with the preferences of both investors and tenants. In conclusion, the Commercial Real Estate market in Austria is experiencing growth and development driven by customer preferences for modern and sustainable office spaces, global trends in flexible working arrangements, local special circumstances such as limited land availability, and underlying macroeconomic factors including a stable economy and favorable investment climate.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.