- Real estate market recovers – demand for property increases
- Great offer: 2025 is the ideal time to look for real estate
- For 95 percent of Austrians, affordability is the deciding factor when choosing a property
The last two years on the real estate market were characterized by challenging conditions: stricter lending guidelines, rising loan interest rates, high construction costs and persistent inflation led to great uncertainty about the future development of purchase prices and affordability. The result was a significant decline in demand for properties to buy, so many people switched to renting. In 2024, however, a positive turnaround emerged: an exemption from land register and deposit registration fees of up to 11,500 euros for private property purchases, falling interest rates from the second half of the year and, most recently, the announcement that the KIM regulation will expire in mid-2025, are causing noticeable changes Facilitations. More and more people are actively pursuing their home dreams again and inquiries for property to own are increasing.
“We are seeing greater price consciousness coupled with a focus on sustainability. Housing production continues to decline. Therefore, now is an excellent time to buy property as there is still plenty of supply on the market.”
says the REAL managing director Martina Hirsch.
It’s a good time to look for real estate because the selection of properties is larger than it has been for a long time. Customers have the opportunity to think about their investment at their leisure and clarify the financing. The sellers have better room for negotiation than in the past. However, declining construction activity among developers is casting its shadow: a decline in completions of over 50 percent is expected by 2026. This applies to both the new building segment owned and rented. The current large supply will therefore first have to be absorbed.
According to a representative survey by TQS Research & Consulting on behalf of s REAL Immobilien, the affordability factor is in first place when looking for property in Austria and is very or somewhat decisive for 95 percent of those surveyed. The demand for used properties is currently correspondingly high across Austria. The factors of property value development and sustainability are very or somewhat important for more than 60 percent of those surveyed. The increased price awareness is also reflected in the fact that renovation costs are priced in or renovations are carried out in stages. However, the desire to move in for the first time is only a decisive factor for 27 percent of Austrians when choosing a property.
Current developments offer buyers with the financial means a unique opportunity to realize their real estate dreams. But given the decline in new construction activity, the market situation will change in the coming years – anyone who acts now will benefit from the large selection options that are currently available.
Photo (reprint free of charge):
Martina Hirsch, Managing Director of REAL Immobilien. Copyright: s Real/Studio Huger
About s REAL Immobilien
s REAL Immobilien was founded at the end of 1979 and has since specialized in supporting people with all questions relating to real estate. s REAL is a subsidiary of Erste Bank and Sparkassen. This means that the real estate company has an extensive network of specialists throughout Austria as well as broad know-how for all types of real estate investments and financing. s REAL positions itself as a hybrid – i.e. analog and digital – real estate brokerage company.
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