Prices in Salzburg: falling sales figures, increasing uncertainty!

Prices in Salzburg: falling sales figures, increasing uncertainty!

Real estate prices in Austria experience turbulent times: While the sales figures for condominiums have dropped dramatically in the past two years, the costs for new buildings seem to remain stable. In the first half of 2024, only about 16,000 apartments were sold, which represents a decline compared to 20,000 in 2023 and over 26,000 in the record year 2022. Project development has particularly influenced the increase in material and construction costs, as real estate expert Sascha Haimovici from Immocontract emphasizes. "The high costs have brought many construction projects to a standstill," said Haimovici. However, this situation could make the dream of home more tangible for many because the prices are stagnating.

price development and KIM regulation

The market is also continued by strict lending criteria, triggered by the KIM regulation introduced in the summer of 2022. This has caused buyers to act hesitantly since autumn 2022. "If the regulation is changed, we could experience a revitalization of the market," says Haimovici. There are currently no price reductions in the new building sector, because the developers face growing costs. Nevertheless, in older properties, especially those from the 1960s and 1970s, prices could correct themselves down, since some owners are over-indebted and have to sell quickly, reports profit .

In the current range of rental apartments, however, there are also tensions. Families who previously wanted to acquire property are now looking for temporary solutions. In areas such as the 22nd district in Vienna, a net rent of up to 13.50 euros per square meter is already paid, which is explicitly due to the high demand for larger rental areas. While the tenants are increasingly picky when looking for an apartment, this could be due to the increased prices and the need to be flexible in uncertain times. According to oe24 , however, the prospect of stabilizing the market in the future is still uncertain, since the construction of new apartments will be hindered by the high costs.