SHARE
COPY LINK
For members

PROPERTY

Property in Austria: A roundup of the latest news and info

Stay up-to-date on the latest Austrian property news with The Local's weekly roundup.

Property in Austria: A roundup of the latest news and info
The Tyrolean city of Innsbruck has some specific rules for short-term holiday rentals. Photo by Jacek Dylag on Unsplash

Thinking of buying a house, moving house, investing or just curious about the property market in Austria? 

Here’s our first edition of our weekly property wrap. 

No sign of a price drop in the Austrian property market

Since the start of the pandemic last year, property prices in Austria have continued to increase with no sign of it slowing down yet.

Raiffeisen Research expects prices in the real estate market to keep rising throughout 2021 and interest rates are not expected to increase until 2025.

As a result, demand remains high among investors and private buyers with a recent survey by real estate broker Interhyp AG revealing 73 percent of tenants want to own property.

This coincides with results from the Property Index 2021 by Deloitte that shows new apartments in Austria are the most expensive in Europe at €4,457 per square metre – an increase of 5.84 percent from last year.

This means a 70 square meter apartment costs an average of 10.6 times the national annual salary. 

Gabriele Etzl, real estate expert and partner at Jank Weiler Operenyi / Deloitte Legal, said: “Despite the year of the Corona crisis, housing prices in Austria continue to rise. 

“The rising construction costs and the high attractiveness of real estate as an investment form are the main reasons for this price development.

“At the moment everything indicates that this trend will intensify in the next few months.”

READ MORE: New apartment prices in Austria are highest in Europe

The Austrian National Bank recently warned of overheating in the property market but other experts, like Michael Haller, CEO at Hypo Vorarlberg Bank, are not worried about a possible risk for investors.

Instead, Haller told ORF he expects prices will soon stabilise at the current rate, “with slight fluctuations upwards or downwards” after that.

Additionally, Andreas Luschnig, Manager of Interhyp in Vienna, told the Salzburger Nachrichten that this is a good time to consider housing finance as interest rates remain low.

The cost of renting in Austria is going up

According to the Kronen Zeitung, “private sector rents have exploded” in Vienna with a square metre now costing on average €10.

This means landlords are receiving 50 percent more in rent than they were 10 years ago.

An increase in rent prices in Austria’s capital city is not restricted to the private sector either, with the municipal sector going up by 23 percent and cooperatives by 29 percent in the past 10 years.

FOR MEMBERS: ANALYSIS: Where are real estate prices on the rise in Austria?

However, Innsbruck has been named as the most expensive city in Austria for rent following a study by Immowelt. In Innsbruck, the average rent is €18,80 per square meter.

Towns in the east of Austria, such as Jennersdorf in Burgenland, are the cheapest places to rent where people pay less than €7 per square meter.

Salzburg is the second most expensive city for rent in Austria at €16,0 per square meter.

In July of this year, the average rent price in Austria rose by 1.2 percent due to inflation.

Is it still possible to find a bargain in the Austrian capital of Vienna? Photo by Geula Prochazka on Unsplash

The luxury homes market is booming

The luxury homes property market has performed well throughout the pandemic as wealthy buyers search for more space and a quieter lifestyle outside of the main cities.

This is being driven by a move towards remote work and wealthy Austrian citizens overseas looking for a new base in their home country, according to an article in Der Standard.

Real estate agents in Austria are also reporting an increase in enquiries from people in Germany searching for a luxury home in Salzburg or the surrounding area.

READ MORE: Can foreigners buy property in Austria?

Another article highlighted the luxury property market in the Kitzbühel district of Tyrol, which has increased by 20 percent since the start of the pandemic.

Mortgage Broker Manfred Hagsteiner told Der Standard that some houses are selling for up to €25 million and that the ceiling on prices “has still not been reached”.

Earlier this year, Peter Marschall, CEO at Marschall Real Estate, told The Local that German buyers have been flocking to Kitzbühel in Tyrol due its close proximity to Munich. 

“People want to own a second home in a nice area,” he said.

“The crisis has highlighted these areas to international buyers more than Vienna.”

Did you know?

The City of Vienna has a rent calculator for tenants to find out if they are paying too much rent and might be due a refund.

Rent in Vienna is famously affordable due to rent control rules on buildings built before 1945 which are smaller than 131m2. These high-ceilinged buildings are also known as Altbau.

However, experts predict that 80 percent of tenants could be paying too much rent to live in these properties.

The rent calculator can be found at the City of Vienna website.

FOR MEMBERS: How to find out if you are paying too much rent in Vienna

The property roundup is new addition and we’d welcome any feedback or suggestions for areas it should cover. Please email us at [email protected]

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

LIVING IN AUSTRIA

EXPLAINED: Everything you need to know about retiring in Austria

Retiring to Austria to spend time in fresh alpine air is a dream for many people, but who is actually eligible to retire to the Alpine Republic? Here’s what you need to know.

EXPLAINED: Everything you need to know about retiring in Austria

People from all over the world can retire to Austria, but unlike some other European countries, Austria does not have a residence permit tailored to retirees.

This means anyone wanting to retire to Austria has to go through the standard immigration channels, with different rules for EU and non-EU citizens.

Here’s what you need to know about retirement in Austria and who is eligible to retire in the Alpine Republic.

FOR MEMBERS: How can British second home owners spend more than 90 days in Austria?

What are the rules for retiring to Austria as an EU citizen?

The process for citizens from EU and EEA countries to retire in Austria is relatively simple due to freedom of movement across the bloc.

There are a few rules though.

To stay in the Austria for longer than three months, retirees will need to be able to support themselves financially (e.g. through a pension) and have sufficient health insurance.

When it comes to accessing a pension from another EU member state, this is typically taken care of by an insurance provider in Austria who will deal with the approval process between the states. Access to public healthcare in Austria is also available to all EU/EEA citizens.

Currently the pension age in Austria is 60 for women and 65 for men. More information about pensions in Austria can be found on the European Commission website.

FOR MEMBERS: Five reasons to retire in Austria

What are the rules for retiring to Austria as a non-EU citizen?

The most popular visa route for non-EU retirees hoping to live out their golden years in the Austrian Alps or the grandeur of Vienna is to apply for a settlement permit

This is issued to people that do not intend to work in Austria and is referred to as “except gainful employment” (Niederlassungsbewilligung – ausgenommen Erwerbstätigkeit) by Austrian immigration.

To qualify for the settlement permit, applicants must prove they have sufficient funds, comprehensive health insurance and a place to live.

Proof of sufficient funds means applicants must have a regular monthly income from a pension, profits from enterprises abroad, income from assets, savings or company shares. 

The minimum amount is €1,030.49 for a single person, or €1,625.71 for married couples or those in a partnership. 

READ ALSO: Baking away solitude: Vienna cafe hopes to unite world’s grandmas

Third-country nationals also have to provide evidence of basic German language skills at Level A1, in line with the Common European Framework of References for Languages. The diploma must be no older than one year when submitted with the application.

However, the application process will be entirely in German so for people that don’t have advanced German language skills, it’s best to hire an English-speaking immigration lawyer.

Additionally, Austria has a social security agreement with several non-EU states, including the UK, Canada and the USA. This allows some people to access their pension directly from Austria, depending on the agreement.

Again, it can be useful to find an English-speaking advisor to help with the bureaucratic part of accessing a pension in Austria if you don’t have strong German language skills.

After five years of living in Austria with a settlement permit, visa holders can then apply for permanent residence.

Want information on pensions? Then check out the following link. 

EXPLAINED: How does the Austrian pension system work?

Useful vocabulary

Retirement – Ruhestand

Pension – Rente

Social insurance – Sozialversicherung

Health insurance – Krankenkasse

Settlement permit – Niederlassungsbewilligung

SHOW COMMENTS