Prices recorded a double-digit drop in a year real estate in Vienna, making the city “top one” among the weakest European capitals in terms of real estate. In contrast, the markets of Madrid, Milan and Zurich rose over the same period. This suggests that European markets have taken a different path over the past year as some have been hit hard by growth. interest rates borrowing while others were favored or scarce residences or from managing the debt crisis in previous years.

In particular, according to the relevant Bloomberg analysis, prices in Vienna in May fell by 12.2% year on year, and in Stockholm, where the alarm has been sounding for several months, they fell by 6.4%. Buoyant market behind fall in Austrian capital rentas well as the strictest conditions for admission loans with a mortgage. Finally, prices in Vienna are estimated to have fallen to an average of 7,084 euros per square metre, with further declines expected.

In addition to Vienna and Stockholm, property prices also fell in Dublin (2.4%), Paris (2.3%) and Berlin (1%), while prices in London were unchanged from last year. OUR debt crisis, the pandemic and support measures put in place to stimulate European economies have caused a huge disruption in the property market. However, for today’s picture, the role of rising international borrowing rates is a catalyst as the cost of servicing mortgages rose as consumers struggled to cope with the rising cost of living.

The focus is on Vienna, where a double-digit price decline was recorded in May – Falling in Stockholm, Dublin, Paris, Berlin.

In any case, Bloomberg data shows that those European regions that were hit hard by the debt crisis are less burdened this time around. Instead, cities that have benefited from a decade of cheap money are suffering.

Therefore, in the case of Austria, despite the fall last year, there is an increase compared to previous years. Loose monetary policy during the pandemic has increased demand for housing, which has also driven up prices. However, by March 2023, housing in Austria has fallen in price by at least 60% compared to last year.

In contrast, the real estate markets of Milan and Madrid, which were hit hard by the debt crisis, are on the rise, although prices are lower in real terms, given inflation. Further growth is noted in the Zurich market.