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PROPERTY

Vienna sees bigger drop in house prices than any other European capital

The Austrian capital saw one of the steepest declines in property prices over the last year – and was the only major European capital to see a double digit fall, according to new data.

Published: 18 May 2023 16:15 CEST
Updated: 19 May 2023 15:46 CEST
Vienna
A street in Vienna. Photo by Pond Juprasong on Unsplash

Having peaked about a year ago, Vienna real estate prices are down by 12.2 percent compared to what they were at this time in 2022 – to about €7,084 per square metre today.

According to the first-ever Bloomberg City Tracker, the drop is well ahead of other European capitals. Stockholm had the next largest fall with a 6.4 percent decrease.

At the same time, prices in other major cities like Madrid, Milan, and Zurich all increased over the last year.

READ ALSO: Is now a good time to buy property in Austria?

Bloomberg analysts noted that they expect prices in the Austrian capital to go down further, with stricter mortgage rules putting downward pressure on prices.

The number of mortgages issued to Austrian households has fallen by more than 60 percent since March 2022.

They also noted that the city’s rental market is creating less incentive for people to buy. Many families have affordable long-term rental contracts, including in social housing, and don’t need to necessarily think about buying.

Prices were however still higher than pre-Covid, when many people opted to move to bigger places due to working from home more.

The Austrian Central Bank estimates that homes in the country could still be overvalued by as much as 40 percent on average.

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PROPERTY

How much does it cost to buy an apartment in Austria’s big cities?

If you are looking to buy an apartment in one of Austria's state capitals for cheap, you should probably avoid the west of the country.

Published: 29 July 2024 16:11 CEST
Updated: 4 August 2024 14:29 CEST
How much does it cost to buy an apartment in Austria's big cities?

Salzburg, Innsbruck, and Bregrenz are all cities known for their stunning landscapes and high quality of life. But these cities are also some of the most expensive areas to live in Austria. 

The combination of picturesque mountain views, proximity to top-tier ski resorts, and vibrant cultural scenes has significantly driven up real estate prices in cities like Salzburg, Innsbruck, and Bregenz.

In contrast, more affordable housing options can be found in the eastern and southern parts of the country, where cities like Graz, Linz, and Eisenstadt offer a more budget-friendly entry into the property market. 

According to a new Raiffeisen Immobilien report, prices for newly built condominiums have risen or at least stagnated in most provincial capitals. This is primarily due to the continuing high construction costs, which are reflected in new-build prices.

READ ALSO: Can foreigners buy property in Austria?

It added: “The supply of new-build apartments is falling, as many projects are not being realised due to the rise in interest rates. With demand still high, prices for new-build apartments are likely to remain stable or at least not fall. The only “outlier” is Bregenz, where new condominiums have become around 10 percent cheaper compared to the previous year due to shrinking demand in the already high-priced region”.

In contrast, Raiffeisen Immobilien is seeing an increase in the supply of used condominiums. More unused properties are coming onto the market, the agency said, leading to slightly falling prices in this segment. 

“The market is divided into two parts: While new-build apartments are becoming scarcer and therefore remain expensive, there is a wide range of existing apartments that are now cheaper again,” said Raiffeisen Immobilien spokespersons Peter Weinberger and Peter Mayr. 

“Our advice is, therefore, to buy existing apartments and, where necessary, adapt them step by step to your own living requirements. This puts less strain on the housing budget”, they added.

Here’s a detailed breakdown of apartment prices across Austria’s state capitals.

  1. Vienna (Wien)

As Austria’s capital and largest city, Vienna naturally has one of the most dynamic property markets. The average price for a new-build apartment in Vienna is €6,100 per square meter. Prices can soar in prestigious central districts like the Innere Stadt, but the average cost for older apartments is € 4,200 per square meter. 

  1. Salzburg

Famous for its baroque architecture and as the birthplace of Mozart, Salzburg is a cultural hub that attracts many buyers. The average cost of new apartments is €9,000 per square meter, making it one of the most expensive cities in Austria for real estate. When it comes to second-hand property, the Salzburg capital is still one of the most expensive at €4,900 per square meter.

  1. Innsbruck

Located in the heart of the Alps, Innsbruck is a favourite among winter sports enthusiasts. This popularity is reflected in its property prices, with the average apartment costing around €9,700 per square meter for new builds. The stunning mountain views and excellent quality of life contribute to the high demand. Even older apartments are still on the high end, costing an average of €5,600 per square meter.

READ ALSO: Vienna vs Graz – Which city is better for foreign residents?

  1. Graz

Graz, the capital of Styria and a UNESCO World Heritage site, is a more affordable option compared to the Western capitals. The average price for a new property here is about €5,100 per square meter and €2,900 for used apartments. Graz is known for its rich history, vibrant cultural scene, and large student population, which influence the real estate market.

  1. Linz

Linz, an industrial and cultural centre, is another relatively affordable city. New apartments in Linz typically cost around €5,500 per square meter, while older ones cost about €3,300 per square meter. The city’s growing reputation as a tech hub has attracted more buyers in recent years.

  1. Klagenfurt

Klagenfurt, the capital of Carinthia, is nestled by Lake Wörthersee and offers a mix of lakeside and urban living. The average apartment price here is around €5,500 per square meter or €2,900 per square meter of an older apartment, making it a mid-range option in Austria’s property market.

  1. Bregenz

Bregenz, located on the eastern shore of Lake Constance, is known for its cultural festivals and stunning natural scenery. Despite its smaller size, property prices are relatively high, averaging €6,100 per square meter (or around €4,400 per square metre in older apartments), reflecting the city’s unique location and lifestyle appeal.

  1. St. Pölten

As the capital of Lower Austria, St. Pölten is one of the more affordable options, with average prices of around €3,700 per square meter – or €2,400 for older apartments. Its proximity to Vienna makes it an attractive option for those looking for more affordable housing while still close to the capital.

  1. Eisenstadt

Eisenstadt, the capital of Burgenland, offers some of the lowest apartment prices among Austria’s state capitals, averaging around €4,100 per square meter on new builds and €2,200 per square meter on older ones. The city is known for its vineyards and historical sites, making it a charming yet affordable place to live.

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