Business
Delivery bottlenecks, inflation and the pandemic have recently caused prices on the Styrian real estate market to rise by more than nine percent – this mainly affects building plots.
The longing for one’s own house in the countryside has increased significantly due to the lockdowns caused by the pandemic – this can be seen in the price development of construction property prices: Prices throughout Styria increased by more than nine percent in the previous year.
Land in Graz 12 percent more expensive
However, this is only an average value, because there are also regional outliers, according to Gerald Gollenz, chairman of the association for the real estate division in the Styrian Chamber of Commerce: “Graz and the surrounding area of Graz are of course the hotspot – a lot is happening in the Gleisdorf area, but also through the Koralmbahn in the Deutschlandsberg area.” Prices in Graz have recently risen by more than twelve percent and in the Leibnitz and Deutschlandsberg districts by more than ten percent.
Hartberg-Fürstenfeld the cheapest
In absolute figures, too, the building plots in Graz have the most significant impact on the budget at EUR 330 per square meter, followed by the Graz area with an average price of EUR 142 per square meter. The cheapest building plots are in the district of Hartberg-Fürstenfeld with an average price of just over 47 euros per square meter, followed by south-eastern Styria with just under 50 euros. With an average price of 99.19 euros per square meter, the average Styrian property prices are still at the lowest end of the nationwide price comparison.
Different price increases for objects
In the case of finished objects, the price increase is quite different and it is also difficult to assess what future developments are concerned – here the price increases in the construction sector are a factor of uncertainty, according to Golenz. However, it is clear “that it is relatively difficult today to create affordable living space with the current construction costs, and that is our main problem at the moment. Then there is the Ukraine crisis. We have a cushion and have built enough, but nobody can say at the moment how things will really go in the next few years.”
Overall, one does not assume falling real estate prices – even if, for example, a little more apartments are being built in the Graz area than there are people moving in – there is currently a slight oversupply of around three to five percent.