The real estate market is slowing down. How expensive credit and the rising cost of living affect preferences.
The mood on the housing market is subdued. Higher interest rates, tighter lending rules and higher construction costs as a result of inflation cloud the prospects of owning real estate. Since autumn 2022, a decline in real estate transactions has been noticeable for the first time in ten years. The reduced demand on the housing market is causing prices to stagnate.
➤ Read more: Purchase Prices – Only a moderate decline after years of increase
Buying behavior changes
Likewise, what is bought or rented is changing. Balconies, gardens or terraces have experienced a noticeable upswing at least since the first lockdown. That’s over now, as a survey by ImmoScout24 shows. The reason is simple: Open spaces make real estate more expensive. In the case of rental apartments, the demand for apartments in old buildings with a balcony or similar increased by a third in 2021 compared to 2020, compared to the previous year there was an increase in demand of only 3 percent.
In the case of new buildings, the desire for an open space was taken into account, it is said. Accordingly, supply has increased by 24 percent in the past two years, but demand has fallen by 15 percent.
Im Detail
For an old building rental apartment of 75 square meters with a balcony or terrace you pay an average of 975 euros per month, for the new apartment you should plan around 1,125 euros. That’s up to 7 percent more rent, that’s the calculation real estate portal before.
➤ Read more: Wifo – Indicative rent increase exacerbates the situation on the rental market
When it comes to buying, pay In 2021, a new apartment with a balcony or terrace costs an average of 5,180 euros per square meter, which is 820 euros per square meter more than for an apartment without open space. For older buildings, the surcharge is 22 percent or just under 1,030 euros per square meter.
The old building apartment with open space was offered for an average of 5,765 euros per square meter, they say.
What’s next?
A decline or even a fall in prices on the housing market is not to be expected, according to WKÖ specialist association chairman Gerald Gollenz. “We have reached a level that will slow down slightly,” says the market expert, who recently expected prices to “move sideways”.
The economist Michael Klien from the Austrian Institute for Economic Research (Wifo) classifies the Vienna real estate market as stable to slightly declining. He sees price declines of 2 to 3 percent here. “These slight declines that you see in Vienna are an Austria-wide phenomenon”. The Wifo expert also refers to the rising interest rates and the tightened conditions for home loans. For the year as a whole, Klien expects a decline in the single-digit percentage range.
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2023-06-12 05:59:15
#Living #hype #balconies #flattening
