Less desire to buy because of multiple crises

While delivery bottlenecks caused by the war and high energy costs caused problems for many property developers, high inflation and rising interest rates on loans unsettled consumers. An analysis by the real estate agent s Real shows that developments in the different federal states varied greatly, and the market generally cooled down.

For example, in the east of the country – in Vienna, Lower Austria and Burgenland – a subdued consumer mood was recently recorded. “Private real estate seekers are currently thinking longer, checking more carefully, but due to falling demand and higher interest rates, they also have more time to think about buying real estate, to find the right property and to clarify financing,” writes s Real.

According to the information, there was also reluctance on the part of buyers in Upper Austria. “The development of interest rates, but also the awareness of the energy price development and other factors (Ukraine war, inflation) have persuaded those interested in buying to postpone the purchase decision in the autumn for a short time,” says the report. However, there are no signs of major price reductions. The currently subdued mood will lead to increased demand for affordable residential real estate in the used segment in the spring.

According to s Real, there was no major turning point this year in high-priced Tyrol. The high square meter prices are likely to continue, especially in metropolitan areas and especially around Innsbruck. Both the number and the volume of real estate brokered remained high in 2022.