VIENNA/ BRATISLAVA: PROMISING PROSPECTS IN THE COMMERCIAL REAL ESTATE MARKET
Spring 2019 – Gerald Eve, a leading, international real estate consulting firm, based in the United Kingdom, has published the spring edition of the Gerald Eve’s Euro Cities Report. The annual report of the international alliance partner of Modesta Real Estate in Austria and Slovakia gives a résumé of the current developments in the commercial real estate market of 30 European cities in 17 European countries and in addition provides prospects for the future. For Europe, a positive outlook for the occupancy of office spaces is predicted, accompanied by an increasing focus on the use of coworking spaces and flexible work areas. At the same time, the demand for logistics and industrial real estate is rising. Among other things, this development relates to the soaring increase of the online shopping market across Europe.
Due to favourable labour market conditions and generally positive economic prospects, a stable demand in the commercial real estate market in Austria is anticipated. In 2018, the office market in Vienna was expanded by about 230,000 m². “For 2019, consistently positive forecasts promote confidence. Especially international investors from the United Kingdom, the USA and the Asian region are showing interest in the Austrian commercial real estate market,” says Andreas Polak-Evans, SIOR and managing partner at Modesta Real Estate. In 2019, the growth of the Austrian industrial and logistic market remains strong. “Especially in the greater Vienna region, as well as in Graz and Linz, the demand from both investors and users remains high, which is an indication of Austria’s increasing appeal as a logistics location,” says Sebastian Scheufele, SIOR and managing partner at Modesta Real Estate.
Because of the fast-growing national economy and the positive labour market in Slovakia, sustained demand for commercial space is forecast. The industrial and logistics market across Slovakia continues to record high growth. Currently more than 200,000 m² of industrial and logistics space is about to be completed. In response to the increasing demand in Bratislava, about 237,000 m² of office spaces are under construction, which will be brought onto the market in 2020. The considerable number of office spaces planned in Bratislava, emphasizes the continuing positive developments on the Slovakian commercial real estate market.
Find the complete Euro Cities Report 2019 HERE.