RETAILING AND THE REAL-ESTATE MARKET IN A USTRIA

During the past two decades, changes that might be termed ''revolution ary'' took place with respect to retailing. Concentration processes an d a marked growth in the number of chainstores, transforming the tradi tional structure characterized by small enterprises, were, and are inc reasingly, reflected in a considerable supply in this specific sector of the real estate market, with mainly small properties being for sale . Moreover unfavourable locations stand out because of an above averag e number of shop premises being offered, a fact mirrored in the format ion of prices according to the laws of a free market. More recently es pecially Austria's capital Vienna was strongly affected by massive str uctural changes that caused an excess supply in the real estate market , but obviously there generally is a similar development in the higher ranks of the system of central places. Offers referring to regional c entres are clearly overrepresented in the advertisements section in ne wspapers as well as pertinent magazines. Concerning the formation of p rices there is a marked gradient from west to east, with the west clea rly holding the top position, whereas there was a distinct fall of pri ces in the southern parts of Austria and especially in Vienna. The ren t per square metre also depends on the location within an urban area, but with the individual groups making offers differing widely as to th eir estimation of an obtainable price: estate agents tend to ask much (up to 25%) higher prices. It remains to be seen what effects the actu al political changes are going to have with respect to this sector of the real estate market. No doubt it will remain an interesting field w ith unlimited scope for further research.