The price index for residential property in Vienna in the third quarter was 9.9% higher than in the corresponding period of the past. This is the largest annual increase in this indicator since 1992. In other regions of the country prices are "stalled".
Relative to the previous quarter of 2010, the price index for housing in the capital rose by 3.7%, according to NuWireInvestor citing National Bank of Austria. But in other cities, prices are compared to the first and second quarters of this year in the third fell by 0,9 and 0,6% respectively.
The difference in the behavior of prices in the capital and beyond in part lies in the fact that about 70% of residential property in Vienna, belong to institutional investors, banks and companies.
In addition, rising prices in the city can be explained by the fact that the economy is weakening, and real estate in the capital, is one of the safest instruments for capital allocation.