Price declines expected: Domestic real estate market is becoming less attractive

Price declines expected: Domestic real estate market is becoming less attractive

According to a report by courier.at, real estate prices in Austria are expected to fall this year. According to a survey by management consultants EY among 80 active market participants, prices are expected to fall in almost all property classes. Meanwhile, the domestic market is becoming less attractive for those surveyed.

The survey shows that prices are expected to fall in almost all property classes, although stable development is only expected in prime locations. A significant price decline is expected, particularly in residential construction and retail. There is a clear loss of attractiveness for the real estate market in general. In 2022, 52 percent still saw the market as “very attractive”, while this year it is only 18 percent.

This development indicates a trend reversal in the real estate market. Vienna is expected to remain the most attractive location in Austria, followed by Salzburg, Graz, Linz and Innsbruck. However, property prices are forecast to fall across most of the country.

The caution and reduced confidence in the market could lead to a subdued real estate market, which could impact both buyers and sellers. Investors may hesitate due to expected price declines, while potential buyers may wait for better opportunities. It is therefore important to closely monitor developments on the real estate market in Austria in the coming months.