Domestic residential real estate prices have gradually declined in recent quarters: by 0.6 percent in the first quarter of 2024 compared to the previous quarter and by 2.6 percent on an annual basis. And it will probably remain that way for the rest of the year.
“The gradual price correction should continue,” expects Matthias Reith, senior economist at Raiffeisen Research, according to a release on Wednesday. However, only used apartments were cheaper.
Home ownership in Austria also became cheaper at the beginning of the year, even though the price correction only took place gradually in the first quarter of this year, the market expert emphasizes. The quarterly decline between January and March this year is the sixth in a row.
Only used homes become cheaper
However, it is reported that the price decline has slowed. Things deteriorated even further in the fourth quarter of 2023, with a decline of 1.4 percent compared to the previous quarter.
At the same time, the ‘market division’ has continued: ‘Only used homes have become cheaper; there are still no price drops in the new construction segment – at least outside Vienna, Reith said in a press release on Wednesday. This market division is a trend “that is here to stay and will therefore shape the year 2024”.
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.
