European rating agency Feri has upgraded its rating for the Austrian real estate market from B to B+ following the recent economic upturn. After a slump of several years, prices have been on the rise since 2004, with the Austrian office market benefiting in particular from the upswing. Austrian office markets are now also increasingly moving back into the focus of international investors, Feri said, with Vienna, Salzburg and Linz capturing most of the action.
European rating agency Feri has upgraded its rating for the Austrian real estate market from B to B+ following the recent economic upturn. After a slump of several years, prices have been on the rise since 2004, with the Austrian office market benefiting in particular from the upswing. Austrian office markets are now also increasingly moving back into the focus of international investors, Feri said, with Vienna, Salzburg and Linz capturing most of the action.
Meanwhile rental rates in the retail sector have increased by more than 5% in most state capitals since 2005, leading to improved ratings for Graz and Linz in particular. With the notable exception of Vienna, prices and rent rates for rental apartments also increased across the board in the past two years. ‘Overall, economic growth in Austria widened considerably in 2006 and our analyses show that the macro-economic growth perspectives for Austria will exceed the average in the European Union through 2010,’ said Wolfgang Kubatzki, head of real estate at Feri Rating & Research.
