According to a study

Salzburg’s real estate prices down ten percent

Real estate prices have fallen in Salzburg.(Bild: Andreas Tröster)

According to a study, real estate prices in Salzburg have fallen. Demand for rental apartments is higher than for property. However, the declines should pave the way for further price increases.

The price trend for apartments and houses continues to decline in part: the more buyers by region live in their own homes, the less this is the case, according to the housing market report published by Raiffeisen Research on Tuesday. According to the "willhaben.at" survey, demand for rental apartments is higher than for owner-occupied apartments. A lack of financing options often stands in the way of a desired purchase of property.

Apartments in Klagenfurt have become more expensive
According to Raiffeisen, even in the past two years from the third quarter of 2022 to the second quarter of 2024, there were certainly districts where apartments have become more expensive rather than cheaper. In addition to the 1st district in Vienna (+2.4 percent), this also applied to Klagenfurt (+3.8 percent) and Villach in Carinthia (3.0 percent) as well as Kufstein in Tyrol (0.9 percent). However, there are many more districts in which the square meter of a condominium has become noticeably cheaper.

The price decline was particularly pronounced in many districts of Vienna. Austria-wide in the relevant housing markets, Steyr in Upper Austria recorded the sharpest drop of 10.8 percent. Apartment prices also fell significantly in Leoben in Styria (minus 8.8%) and Salzburg (minus 9.9%).

Sustained price increases forecast
According to Raiffeisen, this trend is likely to continue. Stronger headwinds are to be expected in Vienna, Innsbruck and Salzburg in particular. This is particularly true in comparison to areas where owner-occupation dominates.

In the longer term, however, "once the current adjustment phase is complete, the price trend will again more closely reflect the population trend", according to the report, referring to the provincial capitals and Vienna and its surrounding areas. There is an influx there. The declines are therefore also paving the way for renewed and, above all, sustained price increases, predicts Raiffeisen Research.