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Austrian rural property market sees influx of 1980s homes, buyers prefer unrenovated
🇦🇹 Austria /Economy & Trade

Austrian rural property market sees influx of 1980s homes, buyers prefer unrenovated

From Die Presse · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

Analysis Named sources Context piece
  • The market for rural properties in Austria is seeing an influx of houses built in the 1980s, which are proving difficult to sell despite their size and potential.
  • Sellers, often heirs, are reluctant to lower prices from the 1980s, leading to a mismatch with current market values and buyer expectations.
  • Buyers increasingly prefer unrenovated properties they can customize, with a particular interest in estates featuring private hunting grounds, though properties over ten million euros are rare.

A notable trend is emerging in Austria's rural property market: a surge in houses built during the 1980s, often characterized by their spacious design intended for large families. These properties, typically featuring elements like a sunny mill, a four-sided farmstead with a courtyard, or a historic hunting lodge, are increasingly appearing on the market. However, they are proving challenging to sell, according to real estate experts.

These houses are coming onto the market more frequently now. However, they are the hardest to sell.

— Siegbert SappertThe managing director at Hendrich Real describes the current challenges in selling 1980s-era rural homes.

Siegbert Sappert, managing director at Hendrich Real, notes that these 1980s homes are difficult to move. He explains that they are often oversized for use as second homes today. He adds that heirs frequently prefer to build new homes that align with contemporary tastes rather than spending their leisure time in the countryside. Furthermore, sellers often hold onto the original purchase price from decades ago, a figure that current buyers are unwilling to meet. "What parents once paid for a house, their heirs are not getting today," Sappert stated.

What parents once paid for a house, their heirs are not getting today.

— Siegbert SappertSappert explains the price expectations gap between original buyers and current heirs selling rural properties.

Sales are primarily occurring due to estate divisions or liquidity issues, according to Fridolin Angerer of Spiegelfeld Immobilien. Sappert attributes some of the market's hesitancy to the current uncertain geopolitical climate, inflation, and general economic anxieties, leading many who don't need to sell to wait. This reluctance is compounded by sellers clinging to past prices, sometimes influenced by neighboring properties that may not have actually sold at their listed price. "Many read the asking price of the neighbor and are not aware that this price was not achieved," Sappert observed.

Sales occur primarily in cases of estate divisions or illiquidity.

— Fridolin AngererAngerer, of Spiegelfeld Immobilien, outlines the main reasons behind current rural property sales.

Buyers are increasingly favoring properties they can renovate to their own specifications. "People prefer to buy unrenovated properties rather than pay for things they don't really like," Sappert explained. This preference makes selling properties valued at over ten million euros exceptionally difficult, although buyers are willing to invest significantly in properties priced between two and three million euros. There remains a strong demand for properties with private hunting grounds, provided they become available on the market.

People prefer to buy unrenovated properties rather than pay for things they don't really like.

— Siegbert SappertSappert discusses buyer preferences for customizable properties in the rural real estate market.
DistantNews Editorial

Originally published by Die Presse in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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