Commercial property

Investment in commercial real estates in Austria

In the last years, record levels of investments in commercial real estates in Austria have been recorded. 50% of it were undertaken by foreign investors: 30% of the total investments were undertaken by investors from Germany and less than 10% by those from other countries. These numbers clearly show an attractiveness of the Austrian market for commercial real estates for foreign investors.

In general, there is a high demand on the part of private and institutional investors for investment projects with the aim of preserving and extending their own funds. Due to a high demand for reliable investment projects, commercial real estates show an appreciation, which is always above the inflation rate (constant rate of 1-2% inflation in the last years).

The highly active demand for commercial real estates on the part of investors can also be traced back to low interest rates in the case of bank financing, a low rate of the EURIBOR and practically zero interest rates for bank deposits.

In general, the main investors in commercial real estates are institutional investors: real estate fund, insurance companies, trusts, etc. Private investors are rather risk averse and thus, prefer investing in less risky financial instruments.

A crucial factor for the increase in the demand for commercial real estates is as well the use of new models for co-investing in big investment projects for structured groups of small and medium-sized private investors as well as legal entities. This financing model requires long-term investments and is characterized by special methods for tax optimisation for investors.

According to statistics, the percentage of contract conclusions in the Austrian segments of commercial real estates in 2025 are divided as follows: the largest shares were accounted for by residential and office properties.

29% — Residential real estate;

25% — Office real estate;

15% — Hotels/Hospitality;

12% — Retail space;

9% — Logistics.

Factors which influence the attractiveness of investments in commercial properties:

The following factors which influence the liquidity effect, the stability and the prospect of an increase in yield should an investor take notice to when selecting a commercial property:

• The type of commercial property
• The location of the real estate
• The potential development of the location and region regarding the demand from tenants
• Proportion of vacant premises
• Duration and type of the rental agreement
• Indicators for the financial stability of the tenant
• Technical state of the real estate
• Perspective of the construction project or the expansion of the usable area of the real estate regarding the potential rent or purchase

Segments of the commercial real estates in Austria and their potential yields:

We are able to offer our clients and partners investment projects of all possible commercial properties` segments in Austria any time:

• Residential Yield Properties: These represent one of the most conservative investment segments for investors. Annual yields for income-generating residential buildings range from approximately 2.25% in Vienna’s historic center to 5% on the outskirts or in provincial towns and municipalities.
• Shopping centres, supermarket chains and retail stores: These show yields of approximately 4.7–6%, depending on the type of retail premises, location, the financial stability (creditworthiness) of the tenant, and the duration of the lease agreement.
• Hotels: Yields are around 5–6% per year. Hotel profitability depends on the location and the type of agreement with the operator: a lease agreement or a management contract. Lease agreements with international hotel operators are considered the most reliable for investors. Hotel yields in large city centers reach approximately 5.4–6% per year.
• Office Centers: Approximately 4.75–6% per year. Office spaces in city centers show relatively low yields. The lowest-risk options are office centers with one or two large anchor tenants on long-term, irrevocable leases. Office centers with a high number of small and medium-sized tenants are considered higher risk but generally offer higher returns.
• Logistics Centers and Business Parks: Around 5–6%. In most cases, logistics centers are located around large population centers or at the intersections of major transport routes. From an acquisition standpoint, logistics centers near major cities are considered the least risky.
• Forestry and Hunting Estates: These are a very conservative type of investment, primarily acquired by wealthy Austrian families or trusts. The purchase of forest and hunting lands is usually driven by the investor’s personal interest in hunting. Profitability is determined by current timber prices.
• Land Plots and Development Projects: Potential returns of up to 15–20% per year. Such projects involve land development, construction, asset management, and subsequent resale.