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Property prices around 39 percent higher than six years ago

Property prices in Austria have risen by an average of 39 percent since 2010, according to the ImmoDEX 2016 real estate report.

Property prices around 39 percent higher than six years ago
Photo: alexraths/Depositphotos

A new house in Austria (123m2) now costs on average €359,000. Prices for new-build properties have increased the most over the past six years in Styria (where the average cost is now €301,000), Burgenland (€260,000) and in Lower Austria (€338.000).

New homes are most expensive in the capital Vienna, where a 123m2 apartment or house costs around €471,000 – an increase of 22 percent since 2010.

The value of older properties has also risen on average by around 35 percent. “Anyone who purchased property in 2010 can be very happy from today's point of view,” according to Christian Nowak, Managing Director of ImmobilienScout24 in Austria.

Bargain prices for older properties can be found in Burgenland, Carinthia and Styria – with average prices for a house between €230,000 and €290,000. In Vorarlberg and Salzburg you can expect to pay double or triple that, with average prices between €515,000 and €560,000. The most expensive older properties are in Vienna (where a house or apartment with 169 m2 will set you back around €710,000) and in Tyrol (where average prices are €640,000).

New-build apartments now cost on average €351,000 euros for 80 m2.

Monthly rental costs have also risen in the past six years. For a used apartment you can now expect to pay on average €9,80 per square metre (not including operating costs) – an increase of 11 percent since 2010.

Rental prices for new properties have risen steeply, by 21 percent, with average costs now €11,50 per square metre. In Vienna council-owned properties, where rents tend to be cheaper and only rise according to inflation, are in high demand. Wiener Wohnen says it currently has 13,100 people on its waiting list, who have registered their interest in renting a council flat.

The fact that property prices are increasing should be cause for alarm, says Georg Spiegelfeld, president of the Austrian brokerage network Immobilienring IR. “There are not enough properties available and this problem will increase. Around 300,000 people are expected to move to Vienna over the next few years… and the city has not prepared for this.”

He said that the only answer is to “build, build, build and redesign”.

 

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PROPERTY

Where to find property in Austria for under €100k

Austria is not known for being a cheap country and property prices are higher than in some other European countries, but it's still possible to find property bargains, some for even under €100k.

Where to find property in Austria for under €100k

Property prices are rising in much of Europe, and Austria is no exception.

The graph below from the European Union’s statistical agency Eurostat shows the sharp upwards trajectory over the past few years with property price increases in Austria outpacing those in the European Union  as a whole.

And a new survey found that the average price per square metre for new apartments in Austria rose by 11 percent last year, making the country Europe’s second-most expensive market.

It’s no surprise, then, that property ownership in Austria remains low.

According to Eurostat, 55.2 percent of people owned their home in Austria in 2021 – well below the 70 percent European average. That’s the third lowest percentage in Europe after Switzerland (41.6 percent) and Germany (51.1 percent).

READ ALSO: Why do so few Austrians own their home?

So, where can we find cheap(er) homes in Austria – either properties that are move-in ready or those that could be excellent investments for those who enjoy fixer-uppers (or huge DIY projects)?

To find these gems, we used a property website that allowed us to search for real estate in the whole of Austria (instead of just a few main cities) and showed us homes with at least three rooms.

The price limit was set at €100,000 (while our colleagues in even-more-expensive Switzerland had theirs set at a much heftier CHF 500k, around €515k).

As of August 2022, we found 25 houses and 34 apartments meeting these criteria on sale.

As you might expect, many of these need (a lot of) work, but the good news is you can definitely still nab a home for under €100,000 with gorgeous views, small plots of land or lake access.

austria map
Houses below €100k are mainly in the south and east of the country. Property map from Wlllhaben.at.

What types of properties are there?
Looking at houses first (see the map above, which also shows the average purchase price across Austria’s different regions), a few things stand out:

The vast majority of the immediately liveable properties are on the tiny side – most are around the 40 square metres mark and billed as holiday homes – but many come fully furnished, a bonus if you’re working to a tight budget.

You will find bigger ones (the largest we saw was 124 square metres), but then they are likely to be complete renovation projects.

If you head for the border, you’ll get more house for your euro in southern and eastern Austria. Many of the properties we saw were in peaceful Burgenland, Austria’s least populous state.

And if you’re happy to buy just over the border in Hungary, Slovakia or even cross into Croatia, you’ll get more space – and less work – for your money.

You might think cities would be a complete no-no for snapping up bargain properties, but when we looked, we actually found a few properties a short drive from Vienna that were below our top price.

House or apartment?
When it comes to apartments, you’ll get more square metres  – we found flats within this price bracket were around 70 square metres on average – and a slightly greater choice of location for your money

READ ALSO: ‘Concrete gold’: Austria ranks as Europe’s second most expensive property market

Plus, the apartments we found were generally in much better condition – some are even newly renovated and fabulous – so you wouldn’t have so much, if any, work to do.

But there is, inevitably, a compromise: you might get a terrace or a balcony, but most won’t have a proper garden, and certainly no land or outbuildings, which many of the houses we found did have.

If you opt for an apartment over a house, you’ll usually have a slightly greater choice of location. Property map from Willhaben.at.

Even when you do find cheap properties, though, they are sometimes quite literally too good to be true. Some may require completely gutting, others may not be connected to the grid or might need costly lease renegotiations.

So, whether you go for a house or an apartment, you need to make sure you do your homework and carry out a thorough inspection first.

While renovation projects can be great investments, they’re time-consuming and can be very costly.

Before you take the huge step of purchasing, be honest with yourself about your own skill levels and how much time you have for a project – it’s easy to get caught up in the romantic idea of the end result of a gorgeous renovation – and get estimates for any work that needs to be done.

READ ALSO: EXPLAINED: Why Austria’s rising property prices are causing alarm

If you’re looking at buying somewhere to rent out, check average monthly rents for that area to be sure it’s worth you putting all the hard work in and that you’ll get a good return on your investment.

Whatever your reason for buying, check the property’s location carefully – some have poor access or no connection to basic services.

And it’s important to be mindful of extra costs, too: besides renovation costs, you’ll also have to fork out for property taxes, monthly charges, as well as any lease renewal costs and other living expenses.

These can all vary depending on the type of property and where it is.

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