IMMO KUTAK: Zoran Kalabić – "Now Is the Right Time to Sell Real Estate, Because You Can Still Make a Profit!"

Crash on the Vienna real estate market – is it time to sell apartments and houses?!

In a conversation with expert Mr. Dipl.Oec. Zoran Kalabić, MBA from 4M Immobilien, an agency that has been at the very top of real estate sales and brokerage in Vienna for more than 20 years!

If you are wondering what the right time is to buy an apartment, how to buy an apartment cheaply, or when selling an apartment is the most profitable decision, you are in the right place. The era of wild real estate price growth is in the past; prices are now not only failing to rise, but are falling rapidly. This year, for example, a decline of 15 percent has been recorded in the residential real estate segment. There is a record number of listings on the market; during the summer months of 2024, around 16,000 apartments were being sold simultaneously in Vienna, which is 60% more than a few years ago. The equilibrium that has been reached represents a classic "buyer's market," as buyers have a record number of properties available to them and there is often room for negotiation. Before the start of the pandemic, the online portal Willhaben had around 65,000 properties listed in Austria, whereas currently there are around 103,000. Everything with a high price simply sits on the market with no interested buyers. The reasons for this are straightforward – the high key interest rate of the European Central Bank and tightened bank requirements for borrowers often leave the latter with little chance of purchasing a property.

Investment-purchased apartments are becoming a burden, as mortgage amounts are often higher than the rent. Yesterday's investors are increasingly eager to offload purchased apartments, which is leading to an explosive growth in supply.

The inaccessibility of mortgages has logically increased the demand for renting apartments; currently in Vienna there are twice as few apartments available for rent than three to four years ago, and rental prices have risen significantly. However, even the increase in rents does not cover mortgage costs. Investors are also affected by legislative changes; from this year onwards, legal short-term rental of apartments on online platforms such as Airbnb has been effectively banned, which has put additional pressure on the market.

Short-term apartment rentals are becoming practically illegal, the supply of apartments is growing, the market is becoming flooded, and prices are falling. Investors are selling properties to salvage the money they have invested.

A significant factor in today's crisis is the slowdown in new construction; this year in Vienna, almost twice as few building permits have been issued compared to the record year of 2019. Weak demand and rising construction costs are forcing developers to adopt a retreating position or even to go bankrupt.

Of course, the fall in apartment and house prices and the growth in supply is very welcome for investors who do not require bank financing. For them, this is an ideal time to purchase exclusive properties that would probably not have been available for sale in stable times.

Now is the ideal time to sell real estate where one can still make a profit, says Dip.Oec Zoran Kalabic, MBA, who is the founder of 4 M Immobilien in Vienna and who, with his team of over 50 people, offers free and fair valuations of apartments, houses and plots in Vienna and the surrounding area.

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