The prices of apartments and houses rose sharply in the first half of 2022. Compared to the same period of the previous year (first half of 2021), residential real estate increased by 13.5 percent, Statistics Austria reported in a broadcast. Recently, however, momentum has weakened somewhat. “In the last four quarters, there has been a slight decline in growth rates compared to the respective previous quarters,” said the head of the statistics authority, Tobias Thomas.
In the second quarter of this year, house prices rose by 2.2 percent compared to the first quarter. “The extent to which the rise in credit costs resulting from the increase in the ECB’s policy rate will affect the real estate market will only become clear from the second half of 2022,” says Thomas.
Higher price increases for new buildings
The costs of new housing developed more strongly during the year than those of existing ones. In the first half of the year, newly completed apartments and prefab homes were purchased for an average of 14.8 percent more expensive than one year previously. Existing living space has increased in price by 13.0 percent.
Prices for owner-occupied homes rose by 12.5 percent in the same period. In addition to the actual purchase price, Statistics Austria also includes acquisition costs such as fees, insurance or repair and renovation costs. If you only look at new housing, the index, including additional costs, rose by 14.3 percent. The costs of maintaining owner-occupied homes subsequently rose by 9.6 percent in the first half of 2022.