Even if the real estate industry is ailing: “We are constantly catching up”

2023-11-23 02:26:00

Inflation, interest rate developments – these are just two factors in the overall economic environment that have had a dampening effect on the real estate market in the recent past. In addition, there is strict lending in Austria (KIM regulation), which slows down both real estate developers and the prefabricated house industry and the construction industry as a whole. As a result, many can no longer afford their dream of owning property.

This is also shown by the recent sharp decline in booking figures, and Remax Innova managing director Martin Rachbauer says: “The lending guidelines definitely need to be adjusted, the current regulation often presents even high earners with insurmountable hurdles in order to create property for themselves at a young age. In We have already strongly urged this in our lectures in Braunau, Ried and Mattighofen and are repeating this demand again.” The number of bookings fell by around a quarter from January to October compared to 2022, and in the Innviertel districts the volume is more than a third – both in terms of the number of sales and the value, according to Rachbauer.

“No market standstill”

Despite this tense situation, at least real estate broker Remax is satisfied that this year they will probably return to the level before the pandemic, according to the company. The fact that competitors in the industry are talking about a “market standstill” and sales drops of between 30 and 40 percent is incomprehensible to the Remax managers in the Innviertel. “For us, sales and the number of properties sold also fell in 2023. Compared to the record year of 2022, we are currently talking about a maximum of half of the industry’s number in terms of number, and in terms of value it is even less. However, the cumulative results have been increasing since the middle of the year “It’s getting better from month to month. We’re constantly catching up,” says Remax Innova founder Christian Haidinger.

“Gain market share”

The market in the Innviertel is developing well: “The Rieder office is above the record sales of the previous year. Overall, this year we will be on par with the sales of 2021, which was our second best year. If we look at the overall market, we are currently gaining market share, and “significant,” says Martin Rachbauer.

“I don’t see any collapse or breakdown in real estate brokerage,” says Walter Lugmayr, Remax partner and location manager in Braunau. “Yes, it is currently a certain challenge, but we have always focused on used properties. At the moment only self-sellers are having problems because they have not yet arrived in the changing market.” The big difficulties are currently with new buildings due to the high construction costs, says Walter Lugmayr.