Austria’s property market is now slowing sharply, amidst meagre economic growth. The residential property price index in Austria increased modestly by 2.4% (0.7% in real terms) during the year to end-Q3 2014, based on Oesterreichische Nationalbank (OeNB)’s figures. In a quarterly basis, property prices dropped 1.2% (-1% in real terms) in Q3 2014.
This overall slowdown in the housing market is reflected in almost all parts of the country.
- In Vienna, the capital, residential property price index rose by just 2.2% (0.5% in real terms) during the year to Q3 2014, the lowest growth in almost seven years. During the latest quarter, house prices in Vienna actually dropped 2.5% (-2.3% in real terms) in Q3 2014, in sharp contrast with the q-o-q growth rates of 1.3% in Q2 2014, 1.1% in Q1 2014, and 2.3% in Q4 2013.
- In the rest of Austria, residential property prices rose by only 2.6% (0.9% in real terms) from a year earlier, and actually fell by 0.5% (-0.4% in real terms) from the previous quarter.