“Gone with moderate, the growth curve is rising steeply”: This is how Anton Nenning, Managing Director of the Remax real estate association, summarized the forecast for this year’s real estate year at an online press conference this week. While price expectations rose by 3.3 percent in 2020 and 1.8 percent in 2021, this year they are plus 7.1 percent. In the lower price segment it is as much as nine percent plus.
The reason for this development: While the demand forecast jumps from 2.8 to 6.7 percent plus, the supply forecast for 2022 stagnates at plus one percent. Nenning explains the increase in the lower price segment with the fact that prospects from the middle price segment would slide into the lower segment if the budget remained the same.
600 brokers were interviewed for the preview. Noticeable here: the trend towards “urban escape”. The biggest winners of this year’s real estate year are building plots, houses in single locations and weekend houses. According to Nenning, housing types in which the residents have little or no contact with other people are particularly popular.
Sought-after building plots
The single-family houses are more than just in great demand: While the demand growth in 2021 was four percent, this year it should be 7.9 percent. The supply is likely to remain the same or even decrease slightly by 0.3 percent. The demand for residential properties in individual locations is also likely to increase by 7.9 percent. The development in terms of supply was slightly positive in 2020 (+ 0.3 percent) and is expected to decline this year (minus 0.5 percent). The price increases are likely to almost triple to plus 8.2 percent. Building plots are also rare and in particular demand, with prices increasing by an average of 10.2 percent this year.
Condominiums are also in great demand, especially those on the outskirts: the demand forecast is 7.3 percent plus (2021: +3.7 percent). The demand for condominiums on the outskirts is therefore developing significantly better than for those in other locations and for all rental apartments. Penthouses and lofts are also in demand again after a decline in 2021.
Winner and Loser
Building plots are also at the top of the demand forecast in Upper Austria (plus 8.8 percent). Prices are likely to rise by 9.9 percent. The demand for residential properties in individual locations is expected to rise by 5.7 percent. It will also be difficult for those interested in single-family homes: in 2021 the forecast was plus 1.2 percent in prices, in 2022 it will be 5.5 percent.
Throughout Austria, Remax observed less dynamism in the commercial property market than in the residential property market. The loser is the office space.
Source: Nachrichten
