Higher construction costs and interest rates are causing turmoil in the domestic real estate market. Raiffeisenlandesbank Oberösterreich Managing Director Heinrich Schaller is annoyed by excessive financing guidelines that have been in effect since August.
Investor apartments lose their appeal as traditional savings become interesting again due to interest rate rises; Owners will increasingly be selling apartments that are no longer needed rather than renting them out as market prices may fall – these are two of the trends Raiffeisen analysts are currently signaling.
“Heavy Headwind”
“The party is now over, the last song has been played,” says Matthias Reith, who speaks of a “violent headwind” and thus addresses the rising interest rates that are causing problems for borrowers of housing loans.
“The carefree period of good weather in the Austrian real estate market is over,” says Reith. Demand is falling sharply – this is not only due to high costs and credit rates, but also due to the new financing guidelines.
“Immeasurable and Target Shot”
“They are beyond the line,” says Raiffeisenlandesbank-OÖ-Boss Heinrich Schaller angrily, demanding: “The sharpest teeth must be pulled out of the regulation.” In the first step, it should be possible to reuse an existing apartment if security for a real estate purchase can be planned.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
