The coming year was marked by a significant decline in demand for home ownership, particularly among young people under 35 years of age. Because of high inflation, increased costs and stricter credit conditions, “the classic house builder has become exotic in Upper Austria,” says Ernst Mittermair, managing director of s Real Upper Austria. The market for used properties has picked up and the average price per square meter for properties has increased by 4.6 percent to 3,725 euros.
“In times of rising interest rates and economic turbulence, it seemed almost impossible for many private households in 2023 to create a financially secure foundation for the future,” explains Martina Hirsch, Managing Director of s Real.
Image: s Real
Popular: Eferdinger Basin
When it comes to used apartments and single-family homes in 2023, the rule was often: the cheaper, the better. “After purchasing, many people modernize and renovate their new home little by little,” says Mittermair. In addition to energy efficiency, good transport connections are also crucial for the popularity of used properties. Regions such as the Eferdinger Basin and the north from Linz to Freistadt were particularly popular. There was also a positive development in the south, towards Kirchdorf.
The desire to own a home remains
The outlook for the real estate market in 2024 shows a return to some kind of normality, say the real estate experts at s Real. People would adapt to the circumstances and find new ways of acquiring property.
Demand for three- to four-room apartments for rent remains high, as does the desire to own property, according to the results of the 2023 housing study.
Raiffeisen Bausparen reported on Thursday that residential building financing would be halved in 2023 compared to the record year 2022, where the value was around two billion euros. Nevertheless, people are looking forward to 2024 with confidence, because at the end of November 2023 the number of new contracts was higher than the entire year of 2022.
