Real Estate
Vienna’s Overpriced Property Market May Take Years to Cool Off
- Sharp correction is unlikely despite years of appreciation
- Buying a home in Vienna still 37% pricier than economy implies
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Vienna is more likely to face a slow correction to its overvalued housing market than a sudden shock, according to a report from Austria’s central bank.
The low risk of forced sales and tempered supply from a receding construction industry make a sharp drop in home prices unlikely, economists at the Austrian National Bank said in a report published Wednesday. While further moderate declines can’t be ruled out, the market may more likely follow a scenario similar to the 1990s, when strong appreciation was followed by a long phase of stagnation.