Vienna Real Estate Market Faces Crisis

"In view of the dramatically declining numbers in new construction and renovation, the legal uncertainties that, for example, prevent a switch to non-fossil fuels for heating and cooling, and the ever-increasing land, construction, and energy costs, urgent solutions are needed now," explained Chairman Michael Pisecky on Tuesday.

Call for Liberalization of the Vienna Real Estate Market

The specialist group represents real estate agents, property managers, and developers with a total of 11,000 employees. The shift in the real estate market and legal interventions have put the industry under pressure. The interest group is calling for a liberalization of the Vienna real estate market. The non-profit and municipal housing sector should be opened to commercial companies in the areas of management and brokerage. "Without rapid changes, not only our companies but also the Vienna real estate market will plunge into a severe, unprecedented crisis," said Pisecky.

Square Meter Prices in Vienna Rise Again

The real estate agents of Engel & Völkers pointed out that square meter prices in Vienna have continued to rise despite political promises. "With average purchase prices of 5,500 to 8,000 euros per square meter and rental prices between 16 and 20 euros per square meter, Vienna is undoubtedly one of the high-priced cities in Europe - but it is still significantly lower compared to metropolises like Paris, London, or Zurich," explained Christian Sommer, Managing Director of Engel & Völkers Commercial Vienna, in a statement. In Paris, for example, up to 17,000 euros per square meter are paid, and rents range between 23 and 30 euros per square meter.

(APA/Red)

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