New apartment prices in Austria are highest in Europe

New apartment prices in Austria are highest in Europe
Photo by Ezequiel Garrido on Unsplash.
A new study by consulting firm Deloitte shows new apartments in Austria are the most expensive in Europe.

The Property Index shows the average square metre price for a new apartment in Austria is now €4,457 – 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 with the increase in prices being driven by ongoing high demand from private buyers and investors.

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: Seven common mistakes to avoid when buying a home in Austria

The report also shows that Austria is a leader in Europe for the number of housing initiatives with 10.9 construction projects for every 1,000 inhabitants in 2020.

The Property Index by Deloitte follows the results of Austria’s real estate price index, published by the Austrian Chamber of Commerce, which revealed an increase in the cost of rent and real estate prices in 2020. 

It showed 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.

The Local reported in June that house prices have increased the most in Tyrol (53 percent) and Vorarlberg (66 percent) while Styria had the smallest increase of just 18 percent.

What about elsewhere in Europe?

The Deloitte Property Index shows that in Germany, the UK and Israel, the square meter price for new apartments averages over €4,000.

However, when the prices are compared with the average earnings, Serbia is the most expensive place for a new apartment in Europe where the cost is 15 times the gross national salary.

This is followed by the Czech Republic at 12.2 times the national salary, and Slovakia and Austria at 10.6.

Ireland is the most affordable with prices at 3.1 times the national salary.

FOR MEMBERS: Can foreigners buy property in Austria?


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