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

The costs of real estate and rents continue to rise in Austria, despite the economic impacts of the coronavirus pandemic.

ANALYSIS: Where are real estate prices on the rise in Austria?
Real estate and rental prices are on the rise in Austria. Photo by Josh Hild on Unsplash

Austria’s real estate price index, published by the Austrian Chamber of Commerce, has shown increases in the costs of rents and of real estate prices across 2020. 

The price of homes rose by an average of 3.7 percent across the country in 2020, while apartments rose by an estimated 4.6 percent. 

Free land which could be built on rose by a much higher 7.5 percent.

Across Austria, rents rose by a total of 1.7 percent – although this was much higher in Vienna, where rents rose by six percent. 

Housing in Austria: Where are prices steady – and where are they on the rise?

In which Austrian cities are property prices on the rise? 

Prices are increasing in almost all Austrian cities and towns. 

The highest increase on a percentage basis for houses and apartments has been in Innsbruck, where costs rose 7.7 percent, followed by Klagenfurt (7.2 percent), Linz (6.3 percent), Graz (5.3 percent), Salzburg and Eisenstadt (both 5 percent) and Vienna (four percent). 

READ MORE: Where have housing prices risen in Austria during the pandemic?

The increase saw Innsbruck take over Salzburg has having the highest prices per square metre in Austria, with Vienna in third place. 

What is in demand?

The findings are in line with recent studies, including one by Statistics Austria, which show that demand is growing for properties with more space. 

A major reason for this was an increase in the popularity of working from home, which has become far more prevalent during the pandemic. 

READ MORE: Ten tips for finding an apartment in Austria

Larger apartments or homes with gardens – along with blocks of vacant land – all grew in popularity during this time. 

“It was a special year – a year of pandemic, home office, exit restrictions. Accordingly, the desire for living was subject to change” said Chamber of Commerce spokesperson Georg Edlauer.

Even as far away from the major urban areas as the Waldviertel, which previously was the location of holiday homes, is now becoming a more attractive option for a principal residence. 

What will change in the future? 

The authors said they expected property costs to continue to rise, but that rents would not increase at the same rate. 

This was for a variety of factors relating to the increasing popularity of owning your own home or apartment, as well as rental laws in Austria which prevent price increases. 

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Reader question: I’ve received my Austrian Klimabonus as a voucher, now what?

Austria's federal government is sending out €500 payments directly to the bank accounts of millions of people, but many have been getting vouchers. Here's what to do with them.

Reader question: I've received my Austrian Klimabonus as a voucher, now what?

With rising inflation, mainly due to the increasing energy costs, people in Austria have seen their salaries purchasing less and less. Because of that, the federal government announced a €6 billion package with assistance, tax cuts and one-off payments.

The main (and somewhat controversial) payment is the so-called “climate bonus and anti-inflation payment”, better known as Klimabonus in Austria. Residents of the country will receive €500 to help cushion the effects of climbing prices. Minors are entitled to half that amount.

The only criterium is that the recipient must have lived in Austria for at least 181 days in 2022 to be eligible for the payment. It doesn’t matter your nationality or employment status – if you have spent six months legally in 2022 in the country, you will get the money.

READ ALSO: When will Austria make the €500 anti-inflation payment and how do I get it?

Money vs voucher

The main difference between recipients is that some will receive the money automatically in their bank accounts and others will get a mailed voucher.

If your bank data is up to date with Austria’s financial institution FinanzAMT on their FinanzOnline portal, you should receive the payment straight to your account. If not, they will mail you the Klimabonus voucher via a secure letter – meaning you need to be at home to sign for it.

READ ALSO: How could Austria’s new electricity price brake benefit you?

There is also an option to have someone else sign the letter for you via a power of attorney form. You can read more about it here.

Once the voucher arrives and you sign for it, you need to redeem it. After that, it’s possible to use them in hundreds of locations, including supermarkets, bookshops and bookshops to thousands of stores.

READ ALSO: EXPLAINED: How Austria’s new finance measures could benefit you

You can check the nearest location that will accept your vouchers here.

Additionally, you can trade your vouchers (they come as ten €50 vouchers) for cash on the official Bank99, which is the bank owned by the Austrian Post and that can be found in hundreds of the Postal Service’s branches.

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