Innsbruck (OTS) – The breathtakingly steep ascent in real estate prices seems to have come to an abrupt end. for now. Still, that doesn’t help families trying to buy their own home.
The rally seems to be over. A crash is currently not very likely, but it cannot be completely ruled out either. After the insanely long, breathtakingly steep ascent of real estate prices in Tyrol, the engine starts to stutter for the first time. Horrendous construction costs, high inflation and tightened credit criteria throw a spanner in the works. You might call that a market shakeout. Or ponder the end of fat profits for investors and speculators. That doesn’t help families who are still dreaming of owning a condominium. You are still just a passenger.
There are currently no elections in Tyrol. That’s when you hear politics’ favorite marketing gag, that of “affordable housing”, less often. Housing, or even property, is hardly affordable in this country. And that for a very long time.
Many young families have not been able to afford a condominium without parental support. Due to the increased cost of living (which has always been high in Tyrol given the low wage level) and the significantly higher interest rates, most people are no longer able to do anything. It’s no use if the prices for new apartments in Innsbruck stagnate. At 10,000 euros per square meter, mind you.
In 2022, around ten percent fewer apartments were sold in Tyrol. However, the prices have risen once more by five percent – making them the third highest in Austria. Even if the apartments should be a little cheaper this year – who should be able to afford that? Chancellor Nehammer’s idea that in 2030 Austria should once more be a country of owners sounds like mockery. How is this supposed to work?
The new apartments that are now coming onto the market were bought and built at great expense. It is not possible for project developers to drastically reduce prices. Some of these will probably end up on the market temporarily as rental apartments. But certainly not on affordable terms, which it would urgently need.
The rally seems to be over. No descent in sight. Politicians play their part. The rental price brake has failed. Approving profitable reallocations only if a proportion of affordable living space is also created is still not the top priority. Other ideas to slow down the free market have failed or do not exist. In this way, politics remains a passenger in a misguided market.
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