Friday, 25. May 2012

:: Home > Business > Property prices 'will continue to rise'

M	T	W	T	F	S	S
30	1	2	3	4	5	6
7	8	9	10	11	12	13
14	15	16	17	18	19	20
21	22	23	24	25	26	27
28	29	30	31	1	2	3

Add your event FREE

Today

Polls

30. 01. 12. - 19:00

Property prices 'will continue to rise'

A real estate manager has said he expects Viennese property prices to climb further.

Johannes Meran, who heads the administration board of Vienna-based property developer Conwert Immobilien Invest AG (Conwert), told the Kurier newspaper today (Mon): "I think the price for owner-occupied apartments in Vienna will continue to rise. Increases of five to 10 per cent are possible."

Meran added his company saw no indicators for contrary developments. The average price for owner-occupied apartments in the Austrian capital shot up in recent years as more and more people considered real estate as a safe but also profitable investment. Flat rents jumped over the years as well, new figures show.

Meran said his company may sell real estate worth 500 million Euros this year. He revealed that Conwert wanted to concentrate on Germany in the coming years. "We have been closely observing Germany for a long time, especially Berlin, Dresden and Leipzig," the businessman said. Meran added that smaller cities in Germany had Conwert’s attention too.

"We want to keep growing in Germany. (...) Berlin’s property sector is booming," the Conwert administration board boss told the Kurier. Meran made clear he expected more difficulties concerning financing his firm’s activities due to stricter capital ratio regulations for banks. However, the Conwert manager also pointed out that his enterprise did not experience troubles as far as this issue was concerned to that day.

Meanwhile, the Austrian Labour Chamber (AK) attacked real estate agents over extraordinary price hikes. AK said last week rents for apartments in Austria shot up by 34.5 per cent between 2001 and 2010. The organisation pointed out that the domestic inflation rose by only 21 per cent during the same period. AK said real estate dealers must stop charging provisions and higher rents for flats because of their excellent location. The chamber added that Austrians’ salaries had risen by 22 per cent on average since 2000.

The Austrian Association of Real Estate Agents hit back, saying that property dealers were kept from issuing inappropriate rent increases by federal law. The association said rents could not rise more strongly than inflation. It claimed apartment rents climbed beyond the inflation rate "due to extensive renovation and restoration" commissioned by property owners and landlords. The Association of Real Estate Agents in Austria accused AK of "trying to cause panic" among people.

It has to be seen whether upcoming tax increases will affect Austrians’ focus on snatching up properties. The government coalition of Social Democrats (SPÖ) and the People’s Party (ÖVP) is reportedly about to introduce a tax on profits made by selling real estate. The measure could come into force as part of the next savings package. SPÖ and ÖVP minister are in the final stage of discussing details of the cost reduction and efficiency campaign which will also include several tax hikes and even some new taxation measures, according to reports.

Austrian Times

Are you on Facebook? Like the Austrian Times on Facebook and win great prizes!

Write your comment to this article here

Tag cloud:
property dealers rsquo agents Austrian capital rents estate Ouml Berlin prices apartments Meran shot owner inflation pointed Germany Increases Conwert

Latest News

Turks flattened by lone asylum seeker
A furious Nigerian went on the rampage at a refuge for asylum seekers in Leibnitz, attacking several people and damaging property.

Woman bites toddler
A woman who bit a two-year-old tot during a road rage row with her mother is being quizzed by police in Wiener Neustadt, Austria.

New Dany Boon comedy to be filmed in Austria
The French film star Dany Boon, one of the highest paid actors in Europe after his hit film "Welcome to the Sticks", is filming in Salzburg.

China meets Hallstatt
After a long time of speculation and anticipation the exact copy of Austrian world heritage village of Hallstatt-Dachstein in China will be unveiled, and there will be real-life Austrians present for the ceremony.

Skier in court after accident
A man from Graz is in court today accused of having inflicted negligent injury upon a five-year-old when skiing in Carinthia last year.

Two fires in Ottakring claim one life
Two fires started on Thursday evening in the Vienna district of Ottakring, one of which claimed a man�s life. Several people were evacuated as a result of the two blazes.

Cows zapped to death by lightning
Four cows were zapped to death after a lightning strike hit the barbed wire fence they were leaning on in Reith im Alpbachtal, Austria.

Wolf babies born in Sch�nbrunn
These cuddly Artic wolf cubs have got every right to look a bit frosty - after they emerged into the world for the first time in the middle of a 27 degree heatwave.

Cleaned Out
A Hungarian cleaning woman who stole tens of thousands of pounds worth of antique jewellery from an Austrian Countess and then sold it for "pocket money" unaware of its real value has been jailed by a court in Austria.

Great expectations for summer tourism season in Vorarlberg
The Vorarlberg tourism industry is currently riding high after a record breaking winter season, and the summer season is expected to follow that same trend.

Jobs in Austria

Popular in Austria

The most popular stories –
last 7 days

	Dune And Busted
	Swastika Shaped Austrian School Rebuilt
	Nazi still honoured in Austria
	20th Vienna Life Ball a fiery success!
	Thieves caught trying to nick F**king Sign