In recent years, many investors have been reluctant to invest in real estate due to high interest rates and rising inflation rates. This reluctance has led to a decline in demand and therefore also in real estate prices. Now that the European Central Bank has lowered the key interest rate and financing conditions are becoming more favorable, new opportunities are opening up for potential buyers. At the same time, the demand for housing in urban areas is growing, which promises stable and long-term returns for investors who get in now.

We have compiled the four most important reasons why buying a residential or commercial property is particularly promising right now:

The last two years have been characterized by rising interest rates and inflation, which has led to a decline in transactions on the investment property market. As a result, prices for investment properties, particularly in cities and also in more rural areas, have fallen considerably. These attractive prices affect properties in the best condition, as well as properties that can be developed and offer high potential returns.

The reduction in the key interest rate by the ECB in June brought lower borrowing costs and better financing conditions, resulting in an increased supply of money. Building interest rates have also fallen, making construction financing easier and cheaper and enabling more people to afford to buy a property again.

Demand for residential real estate in Austria's major cities has increased, accompanied by a more optimistic market assessment. The forecast surplus demand for rental apartments, particularly in urban centers and popular peripheral areas, guarantees high occupancy rates and stable income. On average, new-build residential properties can achieve yields of up to 4.50 %.

In addition to attractive returns on new-build properties, there is also a positive outlook for properties in need of renovation. The purchase of developable existing buildings goes hand in hand with renovation measures in accordance with the requirements of the German Building Energy Act (GEG). In many cases, the cost of a comprehensive core refurbishment eats up the savings from the lower purchase price. In return, investors end up with a property that has excellent energy efficiency and is fit for the future, which is cheap and climate-friendly to run. In addition, the property meets all legal requirements and enjoys positive value growth.

For a long time, the market for investment properties was dominated by professional investors. Residential and commercial properties were in high demand and usually sold before they were offered to the public. However, this has changed in the last two years: Professional investors now also have to fight harder for financing and are taking more time to decide on a property. The extended marketing periods now also offer private investors and newcomers good opportunities to find interesting investment properties.