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PROPERTY

Is now a good time to buy property in Austria?

Here's what you need to know about what is happening in the property market this year before buying a home in Austria.

Published: 7 April 2023 15:45 CEST
Updated: 2 May 2023 16:48 CEST
Is now a good time to buy property in Austria?
Vienna has some of the most expensive properties in Austria (Photo by Andy Wang on Unsplash)

Buying a property in Austria is not easy or cheap, and it has become more expensive in 2022, with higher prices also in the early months of 2023, according to a REMAX survey.

Apartment prices are averaging approximately €264,000 in 2022, a 9 percent increase from the year before and 36 percent more expensive in a five-year comparison, according to the report. The most costly province is Vorarlberg, followed by Vienna, which overtook Tyrol, THE Austrian broker association Remax said.

However, this will likely change over the year as demand decreases and supply increases noticeably. 

READ ALSO: EXPLAINED: Property buying rules for international residents in Austria

“In addition to rising interest rates and tighter lending guidelines, Corona aftershocks, high inflation, and global flashpoints have also contributed to the general uncertainty, but the market has turned around year-on-year, with demand down significantly and supply up noticeably”, said Bernhard Reikersdorfer, managing director of REMAX Austria.

He added: “If the general conditions on the market do not change, prices are expected to trend downwards in 2023. Therefore, buying a condominium for owner-occupancy, but also as a form of investment and for pension provision, remains very interesting.”

What is the current real estate market in Austria?

The typical apartment on the sales market was 68.6 square metres, similar to the flats put for sale in 2021.

The largest apartments were in Upper Austria (74.9 m²), Lower Austria (71.7 m²), Vorarlberg (71.5 m²) and Tyrol (69.9 m²), and the smallest in Vienna (65.3 m²), Styria (67.0 m²) and Salzburg (67.1 m²).

Every fourth apartment registered in Austria cost less than €160,193, as the RE/MAX analysis of all registrations in 2022 shows. Still, housing prices went up in 2022, with increases of up to 9.5 percent for more expensive properties.

READ ALSO: Property in Austria: Can I still buy a holiday home in Salzburg?

Prices per square metre averaged €4,156 in Austria, with the highest prices in Vienna (€5,437), Vorarlberg (€5,065), and Salzburg (€4,634) and the lowest in Burgenland (€2,245) and Styria (€2,769).

What’s the situation in Vienna?

Despite the declining volume, Vienna’s total transaction value in 2022 grew for the third time in a row: from €5.17 billion to €5.41 billion. This means that the Vienna residential market accounts for 36.5 percent of the federal total. In 2021, it was 34.7 percent. 

There have also been significant price increases, as apartment prices in Vienna went up 7.4 percent per year on average over the past ten years. 

A quarter of all apartments traded in Vienna in 2022 cost less than €208,000. This upper limit to the entry-level price range has risen by 11.8 percent in a year.

READ ALSO: EXPLAINED: How Austria’s new property buying rules could impact you

Since 2017, the areas of traded apartments in Vienna have been increasing. In 2022, it came to 65.3 m². This is the largest area since 2017; before that, larger living areas were also the rule in some cases.

In Vienna and the Tyrol, prices per square metre have risen by a total of +45.2% and 45.3% in the last five years, earlier in the Tyrol and later in Vienna. In the Austrian capital, the increases are the highest in the country. 

The cheapest Viennese districts are Hernals, Meidling and Simmering, while apartments in the Inner City are the most expensive, with entry prices at € 1.82 million. Other neighbourhoods also have higher price tags: one in four buyers of an apartment in the districts of Neubau, Döbling, Wieden and Hietzing invested more than €600,000.

According to REMAX experts, the statistically lowest square metre prices were in Brigittenau and Rudolfsheim-Fünfhaus.

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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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