There is a catch ...

Raiffeisen Research: House prices continue to fall

Prices for domestic residential properties have gradually fallen in recent quarters - by 0.6% in the first quarter of 2024 compared to the previous quarter and by 2.6% year-on-year. And this is likely to remain the case for the rest of the year.

"The gradual price correction should continue", expects Matthias Reith, senior economist at Raiffeisen Research, according to a press release on Wednesday. However, only used apartments have become cheaper.

Residential property in Austria also became cheaper at the beginning of the year, even if the price correction this year only took place at a gradual pace in the first quarter, the market expert emphasized. The quarterly decline recorded this year between January and March was the sixth in a row.

Only used properties are becoming cheaper
However, the decline in prices has slowed, according to the data. In the fourth quarter of 2023, there was an even sharper decline of 1.4 percent compared to the previous quarter.

At the same time, the "bifurcation of the market" continued: "Only used properties became cheaper, while there are still no price declines to be seen in the new construction segment - at least outside of Vienna, Reith reported in a press release on Wednesday. This division of the market is a trend "that has probably come to stay and will therefore also characterize the year 2024".