Against the background of rising interest rates, tightened credit guidelines, the aftermath of Corona, high inflation and global crises, there is general uncertainty. The real estate market is now feeling the consequences of this: the sales figures of apartments fell back to the level of 2017 to 2020 in 2022. And there also seems to be a trend reversal in prices.
As an analysis by real estate broker Remax shows, the price increase in the fourth quarter of 2022 was significantly lower than in the previous quarter. “Looking at the year as a whole, this is on the one hand a major setback compared to the previous year, on the other hand only a consolidation to the stable level of the previous four years,” explains Anton Nenning from Remax Austria.
Demand decreases while supply increases
According to Bernhard Reikersdorfer, boss of Remax Austria, the booking figures for apartments in the first quarter of 2023 also show that one must be prepared for a further weakening of the market. The market has changed from year to year, demand has dropped significantly and supply has noticeably increased. “If market conditions do not change, prices can be expected to fall in 2023,” says Reikersdorfer.
Typical apartment prices in Austria have continued to rise, rising by 9.3 percent from 2020 to 2021, rising from EUR 241,506 to EUR 264,035. In a five-year comparison, according to Remax calculations, typical apartment prices in Austria have increased by 36.0 percent in a five-year comparison and by 79.7 percent in a ten-year comparison.
In the list of most expensive districts, Vienna is in the top 10 nine times: Inner City, Döbling, Wieden, Neubau, then Kitzbühel, followed by Josefstadt, Hietzing, Alsergrund, Währing and Leopoldstadt.
Vienna still very expensive place
The typical price per square meter rose to 5437 euros in Vienna in 2022, overtaking the leaders of Vorarlberg in 2020 and 2021. In the far west of Austria, a square meter apartment was worth an average of 5065 euros in 2022. Tyrol at 4647 euros and Salzburg at 4634 euros.
This puts Tyrol ahead of Salzburg for the first time. Then there is the big gap: with 3571 euros per square meter, Carinthia is ahead of Lower Austria with 3463 euros and Upper Austria with 3429 euros. In 2022, Styria with 2769 euros was still below 3000 euros per square meter and Burgenland with 2425 euros.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
