“No nosedive in prices”

Raiffeisen Research expects prices to fall this year. On average in Austria, the market experts expect a price reduction of five percent.

That is of course “moderate compared to the strong increases of recent years”, Raiffeisen Immobilien announced this week. According to the National Bank, residential real estate in Austria had become more expensive by an average of ten percent in the previous year.

However, the end of the dynamic price increases does not mean a longer phase of declines “and certainly not a real estate price nosedive”, says Peter Weinberger, spokesman for Raiffeisen Immobilien Austria. The real estate market was dominated this year by the energy crisis and affordability. Buyers paid more attention to sustainable energy sources and CO2 neutrality. Also important is the question “how much space you can afford and want given the high price level”.

The trend towards functional floor plans and modern energy and heating systems will continue. “In the future, it will have to be built in a more energy-efficient, economical and cost-effective manner”, says Weinberger. The new building would face enormous challenges in this respect.

Rental prices are likely to continue to rise in 2023. According to Raiffeisen Immobilien “still very much in demand” also as an alternative to buying. Demand will increase, especially in metropolitan areas, because interest rates are rising and there are strict regulations for loans. Raiffeisen Immobilien employs 300 people. The most recent fee turnover was 38 million euros.