2023-05-19 22:28:54
Vienna. The rapid decline in property prices in Vienna compared to other European capitals has caused concern in the real estate sector. News agency „Bloomberg“at least from an investor’s point of view, „The epicenter of the real estate crisis in Europe“ Announcer reported that the city recorded a decrease of 12.2 percent per square meter compared to its peak a year ago.
In Vienna, competition arising from tighter housing loan regulations and a large rental market caused an average decline of 7084 euros per square meter in May, while it was emphasized that further declines are expected in the coming period. According to the Real Estate Agency “s Real Immobilienvermittlung”, in the face of rising interest rates and high inflation, more Viennese families continued to stay in rental apartments rather than buy.
prices still too high
On the other hand, it was stated that property prices in Vienna are still high. First, lax financing conditions fueled demand for housing during the Covid 19 pandemic. According to the Austrian National Bank (OeNB), Vienna’s property prices were 40 percent above the base value at the end of 2022.
Since then, the volume of new mortgage lending to households has dropped more than 60 percent year-on-year in March, according to data from OeNB. Given the price drops, Martina Hirsch, head of s Real, told Bloomberg via email. “The next few months will continue to be challenging. We expect demand to remain weak and the market to move cautiously and slowly.” said.
Plus recorded in only three capitals
By contrast, the price decline in Stockholm was relatively lower at 6.4 percent. Of the nine cities currently under surveillance, only Madrid, Milan and Zurich have increased.
Data for Dublin show a 2.4 percent decline in March prices. The Irish government is considering reintroducing mortgage assistance to help consumers. In Berlin, there was a 1 percent decrease in April.
Borja Garcia-Egotxeaga, CEO of Spanish housing manufacturer Neinor Homes SA, told Bloomberg that the Spanish housing market is expected to slow in the second half of the year, but property prices will continue to rise. (yenivatan.at)
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