Austrian Property Market To Benefit From Better Economic Performance
News Posted On: 15 June 2010
According to the latest data from Eurostat, the Austrian economy entered positive growth territory on an annual basis for the first time in the first quarter of this year. This is a very positive sign for Austria, and should benefit the property market, with the commercial sector benefiting first followed by the residential.
This is because Austria is now one of the few countries in Europe that is in positive growth territory on an annual basis. On top of that, the Austrian economy contracted less than 5%, and restarted growth in the third quarter of last year.
Austria is an emerging market, in a part of Europe where many emerging markets were completely devastated by the downturn, and are still struggling to return to growth even now. Meanwhile, the Austrian economy is now 0.5% up on last year, and forecast to grow 1.3% this year and 1.7% next year by the ever-conservative IMF.
Austrian property prices have also held up well against the downturn. While this would have been seen as a downside several months ago, when all that was selling was bargain basement properties, but now mainstream buyers are returning and their main focus is stability over and above discount.
Austria uses the Euro as its currency, and this will also be of benefit now, as the pound strengthens against the euro, up from a low of 1.00GBP/1.05EUR to 1.00GBP/1.20EUR currently, with 1.20 being the current ceiling before another predicted growth. This has made Austrian and Eurozone property 15% cheaper to British buyers in the last few months.
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