Vienna’s Housing Market Faces Double-Digit Declines
Vienna, the capital of Austria, has recorded double-digit drops in real estate prices per square meter since the start of May, signaling the weakest housing market among Europe’s major cities. Bloomberg notes that Vienna’s price declines outpace even Stockholm, the Swedish capital, which has seen a more modest dip in housing values.
From the beginning of May, the average price per square meter for residential space in Vienna has slipped to 7,084 euros. This trend is shaped by several influential factors, including a robust rental market and tighter mortgage lending conditions in the Austrian capital. The combination of rising rents and borrowing restrictions has cooled demand and pressed prices downward over the short term.
Bloomberg reports that Vienna advanced into double-digit declines, surpassing Stockholm, which has experienced a smaller drop in prices. The Austrian capital saw a 12.2 percent decrease from its peak levels a year earlier, while Stockholm registered a 6.4 percent decline. In May, market offers in Vienna averaged 7,084 euros per square meter, underscoring the softer price environment in the city.
On May 3, Bloomberg highlighted a broader discussion among European authorities about housing policy. Some officials are considering halting the granting of residence permits linked to real estate purchases. The rising price levels and growing public concern over affordability are cited as major reasons behind this potential policy shift. Bloomberg notes that these regulatory considerations could influence investment decisions and market dynamics in Vienna and other capitals over the coming months.