Poor figures
Slump noticeable on the Carinthian real estate market
Fewer houses and apartments changed hands. Rental prices, on the other hand, continue to skyrocket. These are the reasons.
Austria's real estate market is in a real slump. The number of sales in Carinthia is also falling sharply. "Carinthia had record sales in 2022, but now the bottom has been reached," explains Peter Dohr from real estate company Remax. While around 1.2 billion euros were generated in the real estate sector in Carinthia back then, this year the figure is only 712 million euros.
The biggest losses were recorded in the provincial capital. Here, the sector recorded a drop of almost 50 percent. "This is the weakest result in the last ten years." All other Carinthian districts also suffered a significant drop. The lowest was in Villach. The real estate dealers here reported a -9.8 percent drop.
Carinthia had record sales in 2022 and has now bottomed out. Klagenfurt has very poor figures. The market for new-build apartments is dead.
Peter Dohr, Remax
However, the horrendous figures don't just affect single-family houses and apartments. "The housing billion never reached the buyers. The government must react. There are a lot of new-build apartments in Klagenfurt, but the market is more than dead due to tough lending conditions. In Villach, Infineon is bringing in a lot of people who will need apartments for many years. That's why the situation there looks a little better," says Dohr in an interview with "Krone". "Curiously, the situation is better for second-hand apartments, where other criteria apply."
Luxury properties sell easily
There would always be buyers for luxury properties in Carinthia, but there are hardly any lakeside properties on offer at the moment. The construction boom is over, which is why rents are rising in both cities. "Prices are going through the roof, especially for apartments with private lake access," says Hansjörg Lenz from Engel und Völkers.
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