Austria – Market Outlook 2012
The demand for residential properties in Austria does not appear to be diminishing. There are several reasons for investment in properties in Austria. Mainly the fear of a higher inflation and the fear of a struggling Euro are the forces behind the high demand for properties. „People say that they have saving accounts between EUR 100.000 and 500.000 and want to know what kind of property they will get for their money“, says Andreas Wollein from the board of the Austria real estate association OVI describing the situation in his home country.
Prices expected to climb
The prices are expected to climb to an even higher level on the basis of the decreasing offer on the residential market. The minor production of new areas will enforce this trend in light of a growing population in most of the austrian agglomorations, with Vienna at the head, as well as the rise of one-person-household.
Increasing real estate prices create needs for political greed referring to additional tax revenue. This has been articulated in the latest political postulation for a housing taxation. The Övi, however, protests vehemently against additional real estate taxation whatsoever.
Real estate market Vienna – above-average increase of prices for sought after objects in locations in demand
Opposed by a high number of demands is the shortage of supply, which has made the prices for newly built owner-occupied flats not only in Vienna to climb upwards over the past 2 years. You can observe an above-average rise in prices up tp 20% for sought after objects in popular locations. „Something that could have been bought for 2.500€/sqm 2 years ago, nowadays would cost 3.000€/sqm“, Andreas Wollein comments on the current price development. Even in less demanded locations it is almost impossible to find objects for under 2.000€/sqm.
A league of its own
In good locations (excluding the 1. district) purchasing prices between 3.500€ – 5.000€/sqm are realised. Attic conversions even cost 3.500€ – 5.500€/sqm at an average depending on the location. Meanwhile even on the used real property market amazing prices are reached; in moderate locations between 2.000€ – 3.000€/sqm, in good locations even 4.500€/sqm are possible. The 1. district in turn is a league of its own: here the purchasing prices can climb up to 8.000€ – 16.000€/sqm.
The Austrian Real Estate Association OVD has published its latest market outlook for the year 2012. Find the outlook for Austria under the following link:
Market Outlook 2012 of OVI