The housing market in Austria continues to experience a mix of price developments, with a notable decline in the value of apartments and houses in several regions. According to the latest housing market report from Raiffeisen Research, published on Tuesday, the more homeowners reside in their properties within a given region, the less significant the price drop tends to be.
A survey by “willhaben.at” highlights a growing preference for rental properties over home ownership, primarily driven by the lack of financing options available to potential buyers. This financial barrier is often a significant obstacle to those hoping to purchase their own home.
However, not all areas have seen a decline. Over the past two years, from the third quarter of 2022 to the second quarter of 2024, some districts have experienced price increases. Vienna’s 1st district saw prices rise by 2.4 percent, Klagenfurt by 3.8 percent, Villach in Carinthia by 3.0 percent, and Kufstein in Tyrol by 0.9 percent. In contrast, many other districts have seen the price per square meter for owner-occupied apartments drop significantly.
The price decline has been particularly pronounced in many districts of Vienna. Steyr in Upper Austria recorded the sharpest decrease, with prices falling by 10.8 percent. Significant drops were also noted in Leoben, Styria (down 8.8 percent), and Salzburg (down 9.9 percent).
Raiffeisen Research anticipates this trend will continue, especially in cities like Vienna, Innsbruck, and Salzburg, where market conditions are expected to become even more challenging. This trend is more pronounced in areas where rental properties are in higher demand than owner-occupied homes.
Looking ahead, Raiffeisen Research suggests that once the current adjustment phase is complete, price developments will once again more closely mirror population trends, particularly in the state capitals and Vienna and its surrounding areas, where there is a steady influx of new residents. These current price declines could lay the groundwork for renewed and more sustainable price increases in the future.
