Real estate prices continue to rise extremely – salzburg.ORF.at
Business
Real estate prices have risen extremely sharply in the past six months. In the city of Salzburg, up to 20,000 euros per square meter are paid for new apartments in top locations. Applied to 50 square meters of living space, the prices are up to one million euros.
While real estate prices have recently risen sharply, the experts at Raiffeisen expect that the price increases will slow down somewhat in the current economic situation. But price increases, inflation, rising interest rates and sharp increases in construction costs make it difficult to make forecasts in a constant economic environment.
During the CoV lockdowns, the strong demand for real estate led to massive price increases. In the city of Salzburg, the average prices for property on the free housing market in new buildings are currently 14,000 to 16,000 euros per square meter. For a 100 square meter apartment, that’s one and a half million euros.
“Young families should be able to afford their own home”
The price increase has been extreme, especially in the past few months. Ownership is an important provision for old age, says the managing director of Raiffeisen Immobilien Salzburg, Peter Mayr: “We should adjust the subsidies so that young families can afford their own home. That means higher subsidies, for example, or the public sector is also buying up real estate.”
For 2022 as a whole, inflation is expected to be around seven percent. The experts expect that the increase in real estate prices will slow down.