Apartments in Austria: the prices are not affected by the crisis

Prices for apartments in Austria in 2009 did not decline. Influence of crisis on the Austrian real estate market was opposite of the expectations. Prices for apartments in Austria and other types of residential property rose instead of the fall.

According to Thomas Malloth, the head of real estate department of the Federal Economic Chamber of Austria, the number of apartments occupied in 2009 in Austria increased by 3.5% compared with 2008.

In 2009, Austria was observed the increasing demand for real estate objects. Therefore, maintaining of the same level of prices and even its small rise against this background that looks quite natural. At the same time, growth of prices for apartments was observed primarily in large cities. According to the expert this was primarily due to people's desire to keep their savings in safe structures. Against this background real estate is one of the most attractive investment destinations.

It is worth noting that the overall drop in demand in the tourist market also had no impact on the housing market of the country. Most ski resorts in Austria, including luxury Kittzbuel, Ischgl and Bad Gastein were able to maintain the level of housing prices at the same level or even slightly increase it. The same goes for capital, Vienna, as well as such cities as Salzburg and Innsbruck.

Nevertheless, some slowdown has affected lease market in Austria. In 2009, in the country was observed a small reduction in rates for office leasing. In addition, a slight decrease in prices was also recorded in a separate real estate market. Luxury villas in Austria, villas and castles became cheaper.

It is worth noting that, despite the stability of the real estate market in Austria, local investment companies seek to finance those projects which, in their opinion, promise the long term big profits. Thus, one of the best examples of this trend is Austrian real estate operator Europolis. The company is represented in real estate markets of CEE countries, and among its recent projects is transferring of 170 million euros in subsidiaries that operate in real estate and leasing market in Romania.