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'Concrete gold': Austria ranks as Europe's second most expensive property market

Hayley Maguire
Hayley Maguire - [email protected]
'Concrete gold': Austria ranks as Europe's second most expensive property market
Subletting is technically legal in Austria but a landlord has the final say on whether they will allow it or not. (Photo by Waldemar Brandt / Pexels)

The average price per square metre for new apartments in Austria rose by 11 percent last year meaning the country has Europe's second most expensive market, a new survey reveals.

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Consulting firm Deloitte has released its annual Property Index and the 2022 edition reveals what most people in Austria already know – property is more expensive than ever.

Last year, the average price per square metre for a new apartment in Austria rose to €4,782, which is an increase of 11 percent on 2020 prices. And in the first quarter of 2022, prices went up by a further 13 percent.

This makes Austria one of the most expensive property markets in Europe (ahead of Germany and France), with just the UK ranking higher.

READ ALSO: Five of the biggest challenges facing Austria right now

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Deloitte’s Gabriele Etzl said: “The Covid-19 crisis and the historically low interest rates unleashed a veritable flight into ‘concrete gold’. 

“At the same time, except for some Viennese districts and small towns across Austria, the supply of new dwellings is scarce.”

The Deloitte Property Index, which is an overview of the European residential property markets, shows that property prices in Vienna increased by 8.2 percent last year to €5,788 per sqm.

However, Austria's capital is still significantly cheaper than other key European cities. For example, the average price per sqm in Paris was €13,462 and Munich was €10,500.

And while construction activity in Austria has been high in recent years, and will continue to increase throughout 2022, Deloitte expects it to decrease in 2023.

FOR MEMBERS: Tenant or landlord: Who pays which costs in Austria

This won't impact the property market though with both prices and mortgage interest rates forecast to keep rising throughout this year and next year in Austria. 

Similarly, the affordability of purchasing a home in Austria is not expected to improve in the coming years, although that is the same for most European countries with the exception of Croatia, Spain and the UK.

For renters in Austria, the picture is a bit more positive as the report predicts rental prices will keep rising throughout 2022 but then stabilise and stay the same in 2023. 

But the average cost of rent in Vienna is still far below other European cities at €8.66 per square metre. The most expensive city for rent prices in Europe was Paris at €29.10 per square metre, followed by Oslo at €26.56 and London at €25.12.

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