Now is the time to sell real estate, as there’s still profit to be made

Alexander Predein – “Now is the time to sell real estate, as there’s still profit to be made!”

The Vienna Real Estate Market Crash – A Good Time to Sell Apartments and Houses?!

In an interview with real estate expert Dr. Alexander Predein, a partner at 4M Immobilien, a leading real estate agency in Austria with over 20 years of success in buying, selling, and brokering real estate, we discovered the true state of the Viennese real estate market.

“If you’re wondering when is the best time to buy an apartment, how to make a profitable purchase, or when selling an apartment is the most lucrative decision, you’ve come to the right place,” began Mr. Predein.

“The era of wild price increases in real estate is over: prices are not only stagnating, but they’re dropping quickly. For instance, this year, the residential real estate sector has seen a 15 percent decrease. The market currently has a record-high number of listings. In the summer of 2024, about 16,000 apartments were for sale in Vienna at once, which is 60% more than a few years ago. This equilibrium creates a classic ‘buyer’s market,’ as buyers have a vast selection of properties and often room to negotiate.”

Reasons Behind the Major Shifts in the Real Estate Market

Before the pandemic, the “Willhaben” online platform had about 65,000 properties listed in Austria; now, that number has reached an astonishing 103,000. Everything with a high price tag is stagnant. The reasons are straightforward—high European Central Bank key interest rates and stricter bank requirements for clients seeking mortgages often leave buyers with limited chances to purchase real estate.

Properties bought as investments are becoming burdensome, as mortgage payments often exceed rental income. Former investors increasingly want to offload purchased apartments, leading to a surge in listings.

The unavailability of mortgages has logically increased rental demand, and now there are half as many rental apartments in Vienna as there were three to four years ago. Rental prices have risen significantly, but even these increases don’t cover mortgage expenses.

Ban on Short-Term Rentals on Online Platforms Like “Airbnb”

Investors are also affected by new legislation: legal short-term rentals through platforms like “Airbnb” are now effectively prohibited, adding further pressure to the market.

Short-term rentals are essentially becoming illegal, increasing the supply of apartments, oversaturating the market, and driving prices down. Investors are selling properties to recoup their investments.

Building Permits and Slowdown in New Construction

A significant factor in the current crisis is the slowdown in new construction. For example, this year, almost half as many building permits were issued in Vienna compared to the record year of 2019. Low demand and rising construction costs are forcing investors to adopt a wait-and-see approach or even file for bankruptcy.

Now is the Perfect Time to Sell Real Estate!

“Of course, the drop in apartment and house prices, along with the increase in listings, is appealing to investors who do not require bank financing. For them, it’s the ideal time to acquire exclusive properties that might not have been available for sale during stable times,” Mr. Predein told the “Austria Today” portal.

“Now is the ideal time to sell real estate, where profit can still be made,” says Dr. Alexander Predein, a partner at 4M Immobilien, which, with a team of more than 50 employees, offers free and precise valuations of apartments, houses, and land in Vienna and the surrounding area.