Boom in Real Estate Purchases, Even Though Prices Remained Almost Unchanged in 2024

The interest rate cuts by the European Central Bank (ECB) have given new momentum to the domestic real estate market. As reported by Statistics Austria on Thursday, the number of residential property transactions in 2024 increased by 8.6 percent compared to the previous year. Prices remained almost unchanged: with a minimal decline of 0.2 percent, they stayed at the 2023 level.

"In terms of price, the purchase of houses and apartments in 2024 remained at the previous year's level with a small minus," explained Statistics Austria Director General Tobias Thomas. After the price decline in 2023, which followed years of price increases, this indicates a certain stabilization.

Existing properties cheaper, new constructions more expensive

Notable is the opposing trend in prices for new constructions and existing properties. While existing houses and apartments became on average 1.5 percent cheaper, prices for new constructions rose by 2.7 percent. Particularly, existing single-family homes became cheaper – in Western Austria (Salzburg, Tyrol, Vorarlberg) even by over three percent. Existing apartments became most significantly cheaper in Vienna with a decrease of 2.6 percent.

In contrast, prices for new apartments rose sharply, especially in Eastern Austria (Upper Austria, Lower Austria, Northern Burgenland excluding Vienna) with an increase of 6.6 percent. In Western Austria, the increase was just under five percent. New constructions of single-family homes, however, became almost one percent cheaper.

Regional price developments with significant differences

Significant differences are also evident when comparing the federal states. Without differentiation by type of construction, Salzburg recorded the largest price decline for houses at -9.7 percent, followed by Vorarlberg and Vienna. For condominiums, however, Carinthia led with a price increase of over seven percent, ahead of Upper Austria (+2 percent). Vienna recorded the largest decline in apartment prices at -1.2 percent.

Austria moderate in European comparison

In an EU-wide comparison, the Austrian real estate market developed more moderately. While on average in the EU, real estate prices rose by 3.8 percent in the first nine months of 2024 (Eurozone: +2.6 percent), Austria was significantly below this with an increase of only 0.7 percent. In contrast, France (-3.5 percent) and Germany (-0.7 percent) recorded strong price declines. The most significant price increases were in Hungary (+13.4 percent), followed by Slovenia (+7.9 percent) and Slovakia (+6.2 percent).

(APA/Red)

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