The Austrian Real Estate Association (OVI) reported that prices for apartments and houses have reached the ceiling. The boom in the real estate market is over.
"After a decade of constant price growth, the ceiling seems to have been reached," said OVI board member Andreas Wollein. Prices are calming down, but this only means lower growth rates – no decline is expected.
In recent months, demand has dropped markedly, especially for real estate worth more than 500,000 euros. Requests have shifted from buying to renting housing. According to Wollein, this is partly due to the fact that from August 1, 2022, banks impose stricter requirements on borrowers. In addition, the market was negatively affected by the growth of interest rates on loans and energy prices, high inflation and uncertainty related to geopolitical factors.
Analysts expect a moderate price increase of about 5% or stagnation in 2023.
Source: Vindobona
