Stability in Viennese retail: Top layers defy loss of purchasing power

Stability in Viennese retail: Top layers defy loss of purchasing power

Retail in Austria is increasingly evident despite a challenging economic environment in 2024. The rental situation remains dynamic, especially in the best locations in Vienna, while structural changes in the market are noticeable. The demand for smaller sales areas, which are up to 300 square meters in size, is growing strongly. In contrast, larger areas that contain the upper floors or basement, which are used, have difficulties to be rented out. "The demand for smaller to medium -sized objects is still high," explains Anja Mutschler from Otto Immobilien.

Although the purchasing power decreases, the price level in the city's A areas remains high. Insiders report that in the high -frequency layers such as the ditch, rental prices are up to 600 euros per square meter. Recent rental concepts and creative approaches help to increase the attractiveness and sustainability of these retail locations. "We continue to see remarkable stability in the best locations in Vienna," confirms Martin Denner, Research Manager at Otto Immobilien.

stable rental prices despite falling demand

In the heart of the Viennese shopping streets, rental prices for small and medium -sized areas have remained stable over the past few years. This is contrasting to the larger areas, in which up to 5 % declines in B and C layers are recorded in the rental prices. This could be an important development with regard to the long -term stability of the market. The statement that vacancies in A-Platzen rose from 0.9 % to 2.6 % in 2023 raises questions about future market development.

Another trend shows that the market forecasts for 2025 could develop positively. Retailers are increasingly looking for locations with a high customer frequency and quality. "Old paths do not open new doors," says Mutschler, and refers to the growing importance of new concepts in order to compensate for the vacancies created by the withdrawal of traditional retailers. In this context, health providers, gastronomy and entertainment offers are becoming increasingly important, while classic clothing transactions tend to stagnate.

The luxury brands that play an increasingly important role in retail take the opportunity to expand. In Vienna, where the most in demand, as the golden quarters, are increasingly gaining attractiveness, luxury brands like Saint Laurent secure new flagship stores. "We observe a stabilization in the strongly frequented inner city locations, which have recovered well from pandeme -related setbacks," says the managing director of Otto Immobilien, Eugen Otto.

In order to increase the attractiveness of locations, the community of owners is asking itself to compromise on the rental conditions. This strategy is crucial in order to not only master the fragility of station trade, but also to overcome. "We are convinced that stationary trade in these layers not only remains stable, but can also set new impulses," continues Otto.

For further information on the current market development in retail as well as the analysis of the most important locations in Vienna and the federal states, the complete market report from Otto Immobilien refers to here .