New apartments are now particularly affordable – save in Vienna and the surrounding area!

New apartments are now particularly affordable – save in Vienna and the surrounding area!

The Austrian real estate market is currently experiencing remarkable developments that are captivating both buyers and investors. Newly built apartments are currently more affordable than ever, which is particularly evident in the eastern federal states. Prices here are now around 5,000 euros per square meter. In Vienna-Margareten, however, JP Immobilien is marketing new apartments for around 8,500 euros per square meter, while similar, move-in-ready projects on Wiedner Hauptstrasse are available 10-20% cheaper.

These low prices are the result of the temporary end of the boom phase on the real estate market. Many construction projects that were purchased by mutual funds before the increase in the risk-free rate are now facing challenges as these funds are no longer active. Private individuals currently dominate the market and are strongly guided by their individual family situation.

Price development and demand

Raiffeisen WohnBau, for example, still offers units at prices that were common two to three years ago. In Vienna-Hietzing these cost around 7,500 euros per square meter. Newer projects, such as those in Fasangartengasse, have already reached prices of 8,300 euros per square meter, while Winegg in Vienna-Meidling offers new apartments from 6,000 euros per square meter. What is particularly notable is the increased demand for residential property at these “old” prices.

The cheapest units currently available can be found in “Das Kremserberg” in St. Pölten and cost around 3,600 euros per square meter. The price development will, as of trend.at reported, largely determined by supply and demand. Forecasts also show that there could be a possible shortage of supply due to a low volume of new construction.

Market analysis and housing barometer

To further assess market developments, it is worth taking a look at the “ImmoScout24 Housing Barometer”. This regularly published analysis tracks the development of rental and purchase prices in Germany, especially in the seven largest metropolitan regions such as Berlin, Munich and Hamburg. It is based on the offers of existing and new apartments for rent or purchase ImmoScout24.

The price data collected is continuously supplemented with information on supply and demand and provides price forecasts for the next twelve months. The housing barometer is updated quarterly and is available as a full download.

In summary, buyers should operate in a changing real estate market. The return to cheaper price levels could represent a once-in-a-lifetime opportunity, while the evolution and tightening of supply pose additional uncertainties.