Financial expert explains: Why buying apartments is currently difficult and how agents are trying to stimulate the market

Financial expert explains: Why buying apartments is currently difficult and how agents are trying to stimulate the market

According to a report by www.diepresse.com, the situation on the real estate market in Austria is currently difficult. According to Sonja Kaspar, head of the residential real estate marketing department at Otto Immobilien, there is hardly any demand anymore. This is not only due to the stricter procurement standards for financing residential real estate, but also to the high prices and slow regulation of the market.

Housing prices are high, and developers are often unwilling to budge on prices because they have bought and built expensive land. Private sellers are more flexible and willing to offer discounts of 20 to 25 percent. These price adjustments are a sign that the market is regulating itself, as in the past prices were not realistic.

The supply of condominiums has increased in recent months while demand remains low. According to Remax Austria, fewer apartments were traded in the first half of 2023 than in the previous year, which corresponds to a decline of 23.8 percent.

Agents are responding to the current situation by using various marketing measures to target potential buyers. They spend more time analyzing the target group in detail and adapt their marketing strategies to the longer marketing time. New trends have also developed on the market for freehold real estate through rent-to-own or the buyer principle.

Overall, the rental market is currently experiencing a real boom, as many people are switching to renting for the time being due to uncertainty. Three- and four-room apartments are particularly sought after, and the ordering principle, which has been in effect since July 2023, enables tenants to save costs.

Developments on the Austrian real estate market indicate that potential buyers can expect long marketing times and room for negotiation.