Real estate in Vienna is getting cheaper again. In no other major European capital are prices falling so quickly. The domestic real estate sector is preparing for “challenging” months.
In fact, property prices in Vienna have fallen the most compared to other European capitals. The city recorded a decline of 12.2 percent per square foot from its high a year ago, the Bloomberg news agency reported, summarily declaring Vienna the “epicenter of Europe’s real estate crisis” — at least from one investor. point of view.
In Vienna, stricter rules for home loans and competition from a large rental market caused asking prices to fall to an average of 7,084 euros per square meter in May. Further declines are expected. The prices are derived from an average of the asking prices in the 23 districts on the internet portal immopreise.at.
Given rising interest rates and high inflation, more Viennese families are staying in rental apartments rather than buying, according to real estate agency Real Immobilienvermittlung.
Prices still very high
However, real estate prices in Vienna are still high. First, easy financing conditions during the Covid-19 pandemic have fueled housing demand. According to the Austrian National Bank (OeNB), property prices in Vienna were 40 percent above base value at the end of 2022.
Since then, according to OeNB data in March, the volume of new mortgage loans for households has fallen by more than 60 percent year-on-year. “The next few months will continue to be challenging,” Martina Hirsch, head of s Real, told Bloomberg via email given the price drops. “We expect continued weak demand and a market that is cautious and slow to adjust.”
Only three capitals stand up
By way of comparison: the price drop in Stockholm is relatively small at 6.4 percent. Of the nine cities currently monitored, only Madrid, Milan and Zurich recorded increases.
Data for Dublin shows prices fell by 2.4 percent in March. Now that the Irish government is considering reintroducing mortgage deductions to help consumers. There were also falls in Berlin, by 1 percent in April.
For Spain, the residential real estate market is expected to weaken in the second half of the year, Borja Garcia-Egotxeaga, CEO of Spanish housing company Neinor Homes SA, told Bloomberg. “But real estate prices will continue to rise.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
