Housing: Vienna sees sharp drop in property sales
After years of record sales and price increases, the Vienna housing market is seeing a clear trend reversal.
The number of properties sold in the Austrian capital fell by around a third in the first half of 2023, while sales revenue dropped by 37 percent, according to new figures from the Vienna edition of a residential market magazine by OTTO Immobilien.
The research found that sales of developer apartments fell by 49 percent and of existing apartments by 11 percent.
"I have never experienced a market situation like this in the 40 years I've worked in the industry," said Dr. Eugen Otto in the magazine.
It's not good news for home owners either: for the first time since the financial crisis of 2008, existing apartments are losing value by an average of one percent, and are now for the first time at an average price per square meter of €4,594, according to the research.
The situation is different for brand new apartments, with the prices having changed only slightly in the first half of 2023.
Existing apartments in Vienna are now sitting at a sale value of about €4,600 per square metre, with rental value going for about €14.40 a square metre.
The slow increase in rent prices - less than a percent on average - is motivating some renters to wait and see what happens with prices before buying, helping to stall the market, according to experts.
READ ALSO: Why people have stopped buying property in Austria
How long could this last?
OTTO experts expect 2024 to be a much less active year for building than this year was, which could have an impact on prices.
About 16,500 apartments are on track to be built in 2024, marking a 17 percent decline.
That may lower supply and push up prices. However, it is also possible that the nationwide rent cap announced from next year will keep some potential buyers renting for a period of time.
READ ALSO: KEY POINTS: What we know so far about Austria's planned rent cap
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The number of properties sold in the Austrian capital fell by around a third in the first half of 2023, while sales revenue dropped by 37 percent, according to new figures from the Vienna edition of a residential market magazine by OTTO Immobilien.
The research found that sales of developer apartments fell by 49 percent and of existing apartments by 11 percent.
"I have never experienced a market situation like this in the 40 years I've worked in the industry," said Dr. Eugen Otto in the magazine.
It's not good news for home owners either: for the first time since the financial crisis of 2008, existing apartments are losing value by an average of one percent, and are now for the first time at an average price per square meter of €4,594, according to the research.
The situation is different for brand new apartments, with the prices having changed only slightly in the first half of 2023.
Existing apartments in Vienna are now sitting at a sale value of about €4,600 per square metre, with rental value going for about €14.40 a square metre.
The slow increase in rent prices - less than a percent on average - is motivating some renters to wait and see what happens with prices before buying, helping to stall the market, according to experts.
READ ALSO: Why people have stopped buying property in Austria
How long could this last?
OTTO experts expect 2024 to be a much less active year for building than this year was, which could have an impact on prices.
About 16,500 apartments are on track to be built in 2024, marking a 17 percent decline.
That may lower supply and push up prices. However, it is also possible that the nationwide rent cap announced from next year will keep some potential buyers renting for a period of time.
READ ALSO: KEY POINTS: What we know so far about Austria's planned rent cap
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