Real estate market 2025: Is the big crisis for new construction projects?

Real estate market 2025: Is the big crisis for new construction projects?

Wiedner Hauptstraße 63, 1040 Wien, Österreich - On February 18, 2025, at 10 a.m., an important press conference of the specialist association of real estate and wealth litter will take place in the Austria Chamber of Commerce in Vienna. Under the title "Immobilienwirtschaft 2025: Gentle upswing or rapid descent?" Central forecasts and challenges of the Austrian real estate market are presented. This information is based on the 1st Austrian new building report, which continuously analyzes nationwide new building projects and created by the Exploreal experts, according to the notification of wko.at .

Current developments in the new building

The numbers in the latest quarterly update indicate a dramatic decline in new building activities. According to Gerald Gollenz, the specialist association chairman, a decline in new construction will be predicted by 10 percent for 2024. Only 18,942 freed -financed condominiums, 6,451 free -financed rental apartments and 11,505 subsidized rental apartments are completed. These frightening forecasts show that the real estate market is faced with significant challenges, such as "https://www.at/presseaus-sung/ots_20250217/Reminder- invitation-Pressegespraech-wkoe-Mimmoben-am-am-182-20-11-wKOE"> ots.at Notice.

Michael Pisecky, deputy chairman in the WKÖ specialist association, warns that after the record years in new construction, the prices for residential properties could stagnate or even decrease easily. This is due to the sunken demand. "The situation in Vienna shows that despite an oversupply in the city, prices in less attractive locations are rather reducing," explains Pisecky. In contrast, prices in Vorarlberg, Carinthia, Salzburg and Upper Austria are already increasing, since demand is revived by wage increases and relieved purchase fees. Johannes Wild, also deputy specialist association chairman, warns potential buyers not to postpone their decisions because the prices will remain stable.

The profound changes in the new building sector indicate possible profound economic consequences for the industry. "For 2025 we predict the loss of around 16,500 new apartments," emphasizes Gollenz. The exciting discussion about the future of the real estate industry is becoming increasingly detailed during the press conference. The Austrian real estate market is therefore in front of a fork in the road, and the future remains anything but safe.