There is an oversupply of micro-apartments on the market, observes an expert. Larger apartments are in demand
Corona affected the real estate markets in 2020. But after the “short-term uncertainty”, a noticeable recovery should set in this year, the property consultant CBRE expects. The investment volume is likely to rise again to a level similar to that before the pandemic from mid-2022. In 2020, 3.3 billion euros were invested in Austrian real estate – almost half less than in the record year 2019. The reason: the lack of supply on the market.
Real estate investments
In any case, the persistently low level of interest rates favors real estate investments; they are still very much in demand, especially in the areas of logistics and living. Almost a third of the investment volume ended up in the residential sector in 2020. This interest should probably continue this year. Housing projects are particularly popular in large cities such as Vienna, Graz and Linz.
too many small apartments
In the area of multi-storey residential buildings, “too many small apartments have recently been built,” says Georg Fichtinger, investment expert at real estate consultancy CBRE. There was a certain rethink here due to the corona. “The future demand is again in the direction of more larger apartments.” Because in many apartments, more work is being done, keyword home office, and rooms are used for homeschooling. So there is more space required.
Micro-apartments
There is an overhang on the market for so-called micro-apartments. So more larger apartments would be built again in the future. “However, affordability must also be given,” emphasizes Georg Fichtinger. The overhang in the smallest apartments will mean that there will be price adjustments.
Hotel market and retail
The hotel and retail markets were hit hardest. The prime rents for shops need around seven percent. The opening of new hotels will be postponed. The office market has gotten off relatively lightly so far. However, according to the experts, the effects will probably only be foreseeable in the course of the year.
