Saturday, 15 March 2025
In 2025, Vienna’s office market is poised for steady growth, reflecting broader trends in Austria’s commercial real estate sector.
Austria’s economy is projected to return to a growth trajectory in 2025, with a slight positive GDP increase and inflation approaching the 2% stability target. This economic stability is expected to bolster the commercial real estate market, particularly in Vienna.
Across Europe, prime office rents are anticipated to rise more slowly, with nominal growth of 2.5–3% in 2025. Vienna is expected to align with this trend, experiencing moderate rental growth. The city’s office market is well-positioned, with rising take-up reflecting growing occupier confidence.
Vacancy Rate
• In the fourth quarter of 2024, the vacancy rate for modern office buildings in Vienna was 3.56%, indicating a stable demand for office spaces.
Rental Rates
• Prime office rents in Vienna have stabilized at approximately €28.00 per square meter per month.
New Office Space Development
• In 2024, around 90,700 square meters of new office space were completed. Projections for 2025 anticipate an increase in completions to approximately 121,000 square meters, which may help alleviate current supply constraints.
Investment Yields
• Prime yields for office properties in Vienna have adjusted to around 5.0%, reflecting the city’s stable investment environment.
Investor interest in Vienna’s office market remains robust. The limited supply of ESG-compliant prime assets continues to attract domestic investors, maintaining a focus on high-quality office spaces. This trend underscores the city’s appeal as a stable and attractive investment destination.
Looking ahead, Vienna’s office market is expected to benefit from the city’s strategic initiatives to enhance infrastructure and promote sustainable development. These efforts are likely to attract more businesses seeking modern and efficient office environments, further strengthening the market.
In conclusion, Vienna’s office market in 2025 reflects a stable and evolving sector, supported by economic resilience and sustained investor interest. As the city continues to develop, it offers promising opportunities for investors and businesses alike, contributing positively to Austria’s overall economic growth.
Source: comp.
