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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]

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LIVING IN AUSTRIA

EXPLAINED: Everything you need to know about recycling in Austria

Austria is keen on recycling, but the many different types of waste cans are sometimes confusing to newcomers and foreigners. Here's what you need to know.

EXPLAINED: Everything you need to know about recycling in Austria

Recycling is very much a part of Austrian culture. You will also find different bins for different waste items in almost every household in the country.

Every year, in Vienna alone, about 100,000 tons of recyclable organic material is collected in over 80,000 containers and processed into compost. This, in turn, can be collected by citizens in household quantities – so you can use your own trash to grow your plants.

Glass is also collected in separate containers, at over 2,500 public locations and at the dung places in the city. However, as they can be noisy, people should only dispose of glass waste between 6am and 10pm, according to the City of Vienna.

READ ALSO: How to dispose of unwanted furniture or whitegoods in Vienna legally

There are several containers throughout the cities where you can dispose of your waste. Still, it is crucial to do it right – and your neighbour will knock on your door if the things you are putting your paper together with your “common” trash.

Here are the main types of waste cans you will find in Austria – it is worth pointing out that these are based in the capital Vienna and might look a bit different depending on your region.

Waste paper

The Altpapier Karton, a red-coloured waste carton, is where you should dump your newspapers, magazines, catalogues, brochures, books, writing paper, letters, copybooks and telephone directories, as well as clean frozen food boxes, paper bags, and cardboard boxes (folded or filled with paper).

This is not a place to drop any composite materials, such as milk and beverage cartons, carbon paper, dirty papers, or receipts.

Organic waste

Also known as Biomüll, it usually has a brown colour. This is where you should throw away your lawn, tree and hedge cuttings. Weeds, shrubs, windfall, leaves, water plants, unseasoned and uncooked fruit and vegetable scraps, stale bread, coffee grounds, or tea leaves.

Organic waste disposal is no place for plastic, eco plastic bags, or eco plastic products. You should also not throw away meat, bones, food leftovers, large branches, eggs, dairy products, content from vacuum cleaner bags, cat litter, varnished or laminated wood, hazardous waste, composite materials such as nappies or milk cartons, or soil.

READ ALSO: Why does Vienna’s waste department have a helicopter and a military plane?

Clear glass

The clear glass (Weissglass) container, a grey one, will hold clear non-returnable glass bottles and pickle jars (they should be empty but not necessarily cleaned). You can also drop clear, condensed milk and soft drinks and any clear glass containers and transparent wine and liquor bottles.

Do not throw in any coloured glass, bottle caps, corks, lead seals (such as champagne bottles), screw tops, plastic bottles, mirrors, window glass, flat or wired glass, light bulbs, china, crystal glass or drinking glasses.

Coloured glass

The green container is reserved for Buntglass or coloured glass. This is where you should throw your coloured non-returnable glass bottles, such as slightly coloured glass, wine, soft drinks, and liquor bottles.

Brown and green glass can go in here together, along with other non-clear glasses. 

READ ALSO: Austria to challenge EU nuclear green label in court

Just as with the clear glass, it is essential not to throw bottle caps, corks, lead seals (such as the ones from champagne bottles), screw tops, plastic bottles, mirrors, window glass, flat or wired glass, light bulbs, china, ceramics, crystal glass or drinking glasses.

Plastic bottles, drink cartons, cans

The yellow collection container will receive any plastic bottles, drink cartons and cans (Plastikflaschen, Getränkekartons, Dosen). This includes all plastic bottles for drinks (PET bottles), for supplies such as vinegar and dairy products, detergents and household cleaners, and plastic containers for cosmetics and toiletries.

READ ALSO: Hasta la mista, baby? How to vote for your favourite Vienna trash can joke

You may also add other plastic bottles, beverage cans, food cans, metal foil, metal tubes, metal tops of jars, and bottles.

Do not turn in any plastic bottles, engine oil bottles, lubricant and adhesive bottles, plastic cups, plastic foil, plastic bags, meat trays, styrofoam, rubber foam, wood, textiles, canisters, buckets, cookware, tools, cables, wires, bathroom or kitchen taps, pipes, steel straps, paint, varnish, and spray cans, etc.

Other waste

The black box will receive all your other waste (Restmüll) and any other residual waste that shouldn’t be thrown in the recycle bins and is not hazardous or bulky.

Hazardous waste or bulky trash

It is illegal to dispose of hazardous or bulky waste in these containers. Instead, there are several collection points in Vienna and other cities where you can leave them. City services will also collect bulky waste for a small fee.

Do you have any more questions about recycling and waste separation in Austria? Get in touoch at [email protected] and we will find the answers for you.

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