Viennese Real Estate Market Stagnates

Published: July 17, 2013; 14:31 · (Vindobona)

After a long-lasting boom, the upward trend in Vienna´s property market has come to an end.

Viennese Real Estate Market Stagnates / Picture: © Vindobona.org

According to the Austrian real estate online portal FindMyHome.at, there was no further price increase in the first two quarters of 2013. Furthermore, the next months will not bring any noticeable changes. The big boom seems to be over now, the experts of FindMyHome.at say. The price increase of the last years was mainly due to the fear of inflation. “Who wanted to invest has already done it.” What is more, the overall economic trend also influences the development of the real estate market. “Unemployment and the economic situation are the main indicator for the property prices.” the experts of FindMyHome.at conclude.

At the moment, the average price for apartments comes at € 4,260 per square meter. The average rent in Vienna amounts to € 14.60 per square meter. Bigger apartments showed a substantial price increase in the last half year. However, regarding rented properties, the trend runs counter to the price development of owner-occupied flats. Here, the rent per square meter of smaller rented properties is 6% higher.

On average, prices are expected to increase by 1.5% this year. Last year, the average increase came at 4.2%. The highest increase is expected for big owner-occupied flats and smaller rented apartments (4.7%). According to real estate experts, there is no danger of a real estate bubble in Austria. Most properties in Austria are self-financed. This year, real estate experts expect that properties worth € 10bn will be transferred.

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