It is expected that the Vienna real estate market will undergo a progressive correction due to the large number of overvalued properties. Mortgage lending conditions, which are more stringent than in the rest of Europe, are gradually already affecting prices, which have previously been continuously growing for several years in a row. But even now, according to estimates by the country’s Central Bank, apartments in the country are approximately 30% more expensive than economic reasons.
In the second quarter, according to the National Bank of Austria, the rate of correction (depreciation) of residential real estate in the country slowed to 0.2%. The overall decline since September 2022 is 2.6%. The heated real estate market continues to adjust to higher interest rates.