Office Market Report 2024

In 2024, the Austrian office market will be shaped by the economically challenging situation, by companies aiming to increase attendance rates and optimize their office portfolios as well as by the demand for sustainable spaces.

Vienna is proving to be a resilient office market with a low vacancy rate and a high pre-letting rate. At the same time, however, there is an undersupply. With the pipeline for 2025 and 2026 there will be a slight relief regarding the supply of modern and easily accessible office space.

In Linz the supply is steadily increasing. Here, the city structure and administration enable a significant growth of modern office space close to the city center, which will further increase the significance of Austria's second most important office market. The office markets in Graz and Salzburg are also further developing. With new projects, which are mainly built in peripheral locations but are well connected to the higher transportation network, the supply of modern office spaces is growing.

Office as an asset class is back at the top of the Austrian investment market again, partly due to the low transaction volumes of other asset classes. Core properties and office bulidings in good locations are popular with the predominantly domestic buyers.