Demand for apartments and houses fell by more than 40%

Erich Schuller, a real estate expert in Austria and Germany, is co-owner of 4M-Immobilien www.4m-immo.at, one of the leading real estate agencies in Austria. In the interview he reveals the secrets of the current state of the real estate market in Austria.

Dear Mr. Schuller, what is the situation on the real estate market in Austria?

The situation has never been so dramatic in the last 60 years. Since the summer of 2022, house and apartment prices have been falling by more than 15% annually, and stabilization is not yet expected. Experts assume that this trend will continue in 2025.

Such a significant drop in prices is due to the aggressive interest rate policy of the European Central Bank. Citizens due to sharply increased interest rates simply can no longer afford to buy a home. In addition, high inflation is exacerbating this situation. Another blow to the industry was the introduction of new lending rules by the financial regulator at the worst possible time. All these factors have virtually paralyzed the housing and house market. Demand for apartments and houses fell by more than 40%.

In the same period, the supply of houses and apartments for sale increased by more than 60%! There are currently more than 53,000 apartments and houses for sale in Austria. This oversupply is due to the fact that property owners with floating rate loans can no longer afford to pay their loans and are actually forced to sell their properties. Double mortgage payments and inflation are driving citizens to financial ruin.

The real estate market is in a state of shock, and the long-predicted real estate bubble has become a reality. Despite significant price adjustments, real estate values remain at high levels. Owners who are selling their condos or homes purchased five, ten or more years ago are still making a significant profit on the sale.

Potential buyers looking to purchase real estate today take a minimum of three months to make a purchase decision after thoroughly researching the market. Because of the oversupply, buyers are scrutinizing the market. Today, real estate no longer sells itself.

Successful selling of real estate is now a complex task that requires a professional approach, modern marketing strategies and presentation tools. Good connections with banks for customized financing are necessary, as well as an accurate assessment of the value of the property. Only in this way can the most favorable selling price be achieved in these difficult conditions.

We at 4M-Immobilien www.4m-immo.at accompany our clients throughout the entire sales process and always keep the situation under control. Legally secure transactions are handled in cooperation with leading real estate lawyers in Vienna.

With our team of more than 50 people, we have already successfully sold more than 500 properties this year. If you are also looking to sell your property, we would be happy to offer you an initial consultation free of charge.

We look forward to hearing from you.

Regards,
Erich Schuller