The coronavirus pandemic is attracting more people to the outskirts or into the countryside. "Living in the countryside is seen as more attractive than it was a year or two ago," said real estate consultant RE / MAX on Tuesday. However, there are problems with affordability, because banks require more equity and are more restrictive in lending because of the high unemployment and short-time working figures, explained managing director Bernhard Reikersdorfer on Tuesday. </p><div> <p>With young families, for example, the demand for living around the metropolitan areas and in the ever-widening bacon belts is great - but it is becoming more and more difficult for them to buy affordable property or a single-family house. There are now demonstrably many customers who now have problems getting loans, although they would have received such financing before Corona, said Reikersdorfer. This affects people from households in which a family member is unemployed or on short-time work or in one of the problem areas such as the hotel or travel industry.</p>
It is very difficult to predict whether the strong “out of the city” trend after the pandemic will be over – but it could quickly return to normal. According to Reikersdorfer from the RE / MAX Austria management team, it was already clear after the first lockdown in spring 2020 that living with a garden, a balcony or a terrace was particularly in demand.
In 2021, the demand pressure for condominiums and rental apartments in prime locations will ease somewhat, but living on the outskirts or around metropolises will be in greater demand than in previous years, according to the survey carried out in December among 560 experts from the consultant nationwide. For residential properties in individual locations, mostly houses without direct neighbors, the prices can be seen again noticeably rising, as is the demand for single-family houses. There is a renaissance in weekend homes.
Single-family and weekend houses as well as properties in individual locations would show the highest price dynamics of all property categories in 2021 – only then would condominiums in the center and on the outskirts follow when prices rise. Locations that can be reached within half an hour to an hour from the federal or state capital would benefit from the “trend out of the city”.
In first place in terms of demand and price development, but only in the last place on offer in all categories, according to RE / MAX, building plots are unchallenged this year. With demand expected to be 6.6 percent higher for 2021 and a 2.1 percent lower supply, RE / MAX expert Anton Nenning is surprised that the price increase is “only” forecast at 5.4 percent this year, after already considerable growth of 5.5 and 5.3 percent in the years 2019 and 2020. Because the demand for building land is likely to rise by 6.6 percent this year, but at the same time the supply will shrink by 2.1 percent.
At the lower end of the scale is the commercial sector, for which the outlook in 2021 is as poor as it was in 2015, according to Nenning. For example, real estate prices for business premises, office space, commercial properties and company properties across Austria are likely to fall by 5.9, 5.4, 4.5 and 2.6 percent this year. Price drops of 1.2 and 0.5 percent can be seen for rental apartments in rural communities or on the outskirts. Rental apartments in central locations should remain price stable at -0.2 percent, as should penthouses, lofts and maisonettes. For condominiums in rural communities, 0.2 percent plus is seen, for agricultural and forest land 0.3 percent.
In the residential segment, prices are likely to rise most strongly in 2021, according to the experts, for properties in individual locations (+3.0 percent), followed by single-family houses in residential areas (+2.8 percent), where 4.0 percent more demand is just 1.5 Percent higher supply is likely. In the case of living, the costs in the top price segment remain unchanged this year, in the middle segment a 1.7 percent price increase is expected and in the bottom segment an increase of 3.2 percent, since demand is growing particularly strongly here. Weekend houses are expected to be 2.1 percent more expensive, condominiums in central locations 1.9 percent and those on the outskirts 1.2 percent more expensive.
On average for all 17 real estate categories, RE / MAX expects the increase in demand to accelerate from 2.6 to 2.8 percent in 2021, a noticeable jump in the increase in offers by 1.9 percent (after only +0.4 percent in 2020) and only 1.8 percent higher prices (after +3.3 percent in 2020 and 3.6 and 4.5 percent plus in 2019 and 2018). 9 of the 17 real estate categories are viewed as higher in price, 8 lower.
In the overall domestic market, the number of real estate purchases in 2020, at 135,000, is likely to have almost reached the record level of 2019 (138,690), the experts at RE / MAX suspect. At EUR 33.5 billion, the value of the transactions could even be slightly below the previous year’s figure (EUR 34.3 billion). They want to be able to say more precisely in March, when all deals from 2020 are entered in the land register. In 2020, the number of transactions for condominiums is likely to have decreased for the second year in a row, from 49,832 to around 48,000 – and the value-based volume of 11.5 billion is slightly below the record year 2019 (11.6 billion).
According to Reikersdorfer, RE / MAX itself had its second-best year after 2019 in the previous year. Fee sales were 4.8 percent below 2019, but 5.3 percent above 2018. We are very confident about the year 2021, we want to achieve a double-digit increase in sales.
Those: APA </span> </div>