Prices for used apartments have continued to fall. In Eisenstadt, a condominium can be purchased 25 percent cheaper than last year. The cheapest state capital is St. Pölten: here you can get a condominium from 2,100 euros per square meter, in Innsbruck you have to pay more than double.
According to experts, the real estate sector will have to prepare for tough times in the next one to two years: financing will be difficult to obtain and devaluations in the institutional sector are likely. Interest rates are high and a further increase cannot be ruled out. This makes other investment categories considerably more attractive, according to an analysis by consultancy firm Advicum. Their real estate expert Matthias Ortner expects a turbulent year in 2024.
Lower return expectations on the housing market
Even before 2025, not everything can necessarily be clear. “The office market will implode, with the exception of good locations, and the housing market will be somewhat more stable, but without achieving the usual returns of previous years,” the analysis shows.
Compared to Europe, Austria is one of the most expensive places:
The current situation is also reflected in the prices for used apartments, according to an analysis of apartment prices by Raiffeisen Immobilien. Apartment prices in Eisenstadt have therefore fallen by approximately 25 percent compared to the previous year and are available from just 2,150 euros per square meter. In St. Pölten, the used apartments lost about 12 percent of their value and at 2,100 euros per square meter are the cheapest in the state capitals.
The most expensive apartments are located in Innsbruck
In Klagenfurt and Graz the average price is 2,800 and 3,000 euros per square meter respectively. While Linz is in the mid-range price range, in Vienna you can expect a price of around 4,400 euros, although prices in Vienna have already dropped by eight percent. In the city of Mozart you have to spend about 400 euros more. And a used apartment in Innsbruck starts at around 5,300 euros per square meter. Prices there have already fallen by about ten percent.
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.
