New construction significantly more expensive

Condominiums are no longer getting much cheaper

While house prices in the expensive provinces of Vienna, Salzburg, Tyrol and Vorarlberg have fallen, they have remained stable or risen slightly in the other provinces this year.

(Bild: Robert Kneschke/stock.adobe.com (Symbolbild))

After two years of falling apartment prices, there are now signs of a change. This year, only 15,974 apartments were registered for new owners across Austria in the first six months - compared to 19,999 in the same period last year and 26,262 in the same period in 2022. Nevertheless, average prices for condominiums have risen by 1 percent since then.

An average apartment costs 256,335 euros, the Remax real estate network announced in a press release on Wednesday. According to Remax real estate agents, interest rate cuts and falling inflation have recently boosted demand again. In July and August, there were already more land register entries than in the same period last year.

Prices down in expensive federal states
This points to a recovery in the market, explained Bernhard Reikersdorfer, Managing Director of Remax Austria. While house prices have fallen in the expensive federal states of Vienna, Salzburg, Tyrol and Vorarlberg, they have remained stable or risen slightly in the other federal states.

However, new-build apartments became significantly more expensive: the price premium for these apartments rose from 41 to 48 percent.

Average prices have stabilized
After the average price of an apartment fell by 4213 euros from 2022 to 2023 despite high inflation, it rose by 2625 euros this year. Taking inflation into account, apartments have therefore also become cheaper this year. In nominal terms, house prices have risen by 23.7 percent in the last five years, while inflation amounted to 25.7 percent overall. 

"This means that the fears of a real estate bubble repeatedly voiced by monetary authorities should also have burst," said Anton Nenning, Head of Research at Remax.