The Austrian housing market is cooling quickly


The Austrian housing market is currently cooling rapidly amid weakening demand, falling housing activity coupled with a slowing economy. During the year to the second quarter of 2023, the residential property price index in Austria fell by 2.27% (-10.18% in real terms). This is a far cry from last year’s growth of 13.13%.

There is a big difference between the situation in the capital Vienna and the rest of Austria. In Vienna, house prices fell by 3.06% (-10.91% in real terms) in the second quarter of 2023. In the rest of the country, on the contrary, the residential property price index increased strongly by 13.70% (4.50% in real terms). Construction activity in the country is also falling sharply. Last year, the total number of housing approved for construction fell by 18.8% year on year.



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