Corona crisis and the Vienna office market: 

Rentals will fall significantly this year

According to estimates by experts at Otto Immobilien, the consequences of the corona pandemic will also have an impact on the office market in Vienna: "When it comes to the rental of office spaces in the federal capital, we need to anticipate the loss of an average quarter this year", says Steven Bill Scheffler - Team leader Offices at Otto Immobilien. This means that, this year, the rental turnover will fall from 200,000 m2 to 130,000 m2. "The overall mood, however, is one of confidence and the office segment will be able to overcome this crisis with relative stability", says Patrick Homm, MA, Head of Commercial. 

"Initially, there was widespread concern that all ongoing and almost completed projects would be cancelled altogether or postponed. Over the last two weeks, however, the outlook has been more positive. People have come to terms with the situation and are also finding contractual solutions", reports Scheffler from his direct discussions with customers. In his view, however, some projects still in their early stages will definitely be postponed. Scheffler believes the crisis also harbours opportunity, however: "The property industry will FINALLY be forced to move towards creativity, innovation and digitalisation. With remote viewings, 360-degree tours, digital staging, out-of-the-box marketing, and so on".

Home office trend: this too could be an opportunity in the crisis. "Companies have now been forced to innovate and upgrade their technology and are realising that home office operations can be maintained - and perhaps even bring with them benefits. On the other hand, employees will no doubt very much appreciate being back in a professional office environment after many weeks of working from home".