The Austrian real estate market has been undergoing significant changes in recent years. According to experts, including Dr. Alexander Predein of the Vienna real estate agency 4m-immobilien, housing prices are falling, which is due to rising interest rates and worsening lending conditions. In this context, it is important to understand what awaits the real estate market in Austria by 2025. Taking into account forecasts and current trends, this article highlights the key changes in the Austrian real estate market and provides recommendations for potential buyers and investors. 🏠
Current situation on the real estate market in Austria
Price reduction and market crisis 🏘️
According to experts, the Austrian real estate market is in crisis. In the last two years, housing prices have fallen by 15% on average, and only one in ten transactions involves a mortgage. This creates certain problems for property owners who are thinking about selling to avoid further losses. In Vienna, despite the population growth, most transactions take place between locals, which also puts pressure on prices.
Rising construction costs and demand for housing
Although the market is struggling, high construction costs and continued demand for housing could put a squeeze on prices. According to Raiffeisen Research, residential property prices are expected to fall by a further 10% in 2025 due to a decline in new construction and high material costs. Read more in the article "Analysis of real estate prices in Austria".
Forecasts for 2025
Expected increase in housing prices 📈
Despite the current problems, some studies suggest that from 2025, under favorable conditions, the real estate market could begin to recover. For example, an article from WKÖ reports that housing prices in Austria are expected to rise, which will be a consequence of high construction costs and a lack of new projects. according to WKÖ.
The Impact of the Construction Industry on the Market
According to an analysis of the construction industry, the decline in new construction is expected to lead to a housing shortage on the market. In particular, the number of completed new apartments could fall by a third compared to 2023. This, in turn, will contribute to rising prices more details here.
Advice for real estate buyers
For potential buyers of real estate in Austria, it is important to be aware of current market trends and legislation. Here are some recommendations:
✅ Research the market: Keep up to date with real estate market trends to help you understand when it's best to make a purchase.
📄 Check your local laws: Many buyers, especially from other countries, do not research local laws, which can lead to problems.
📅 Don't delay: If you are planning to invest in real estate, try not to postpone your intentions indefinitely.
Conclusion and findings
The Austrian property market is currently facing significant challenges, including falling prices, rising construction costs and changes in credit conditions. However, there are signs that the market may start to recover by 2025, when prices are expected to rise due to a housing shortage and high demand. However, potential buyers should carefully study the market and take all changes into account in order to make informed decisions.
If you have any questions about the current state of the real estate market in Austria or would like to learn more about various aspects of buying a home, do not hesitate to contact us for information. 🏡
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