Property prices in the first quarter of 2014 increased by 8 per cent in Vienna even though Austria’s central bank believes that housing in the capital is over priced by about 22 per cent. In the rest of the country figures indicate that property is undervalued by about 8 per cent.
However the price increase in the first quarter was lower than the 11.4 per cent hike in the same period the previous year.
The central bank believes that Russian, German and buyers from Arab countries, who are interested in the luxury end of the market, are driving the price rises.
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