Property For Members

What experts say will happen to the Austrian housing market in 2023

Hayley Maguire
Hayley Maguire - [email protected]
What experts say will happen to the Austrian housing market in 2023
Full time employees in Austria enjoy a minimum of 25 days annual leave each year. (Photo by Chavdar Dimitrov / Pexels)

Austria’s property market reached new highs in recent years, but has it passed the peak? If you're planning to buy property in the Alpine Republic, here's what you need to know.


Austria’s property market has been booming over the past couple of years, but could the bubble be about to burst?

As inflation takes momentum out of the market and rising interest rates make mortgages more expensive, real estate agents are starting to report a slowdown in transactions. 

This comes as Austria reports the biggest increase in bankruptcies in Europe amid warnings of a possible Europe-wide recession. 

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So what does this mean for people hoping to buy property in Austria? And what is the forecast for the market in 2023?

The Local spoke to property experts to find out what will happen to the market next year.


What is happening in the property market right now?

In the latest report by real estate agent Remax, sales of single-family homes were at the lowest level in Austria since 2014 during the first half of 2022.

And overall, property transactions were down across the country when compared with the same period in 2021.

However, despite sales slowing down, prices are continuing to go up with the price for an average single-family house in Austria now reaching €347,000 – an increase of 13 percent compared to 2021.

Rising prices means the dream of owning a home is becoming out of reach for more people, as recognised by Bernhard Reikersdorfer, Managing Director at Remax.

Reikersdorfer said: “Due to the sharp rise in the cost of living, inflation, rising interest rates and the tightening of credit procurement, the number of people interested in a single-family home who can also afford to buy it has fallen significantly.”

READ MORE: EXPLAINED: How Austria’s new property buying rules could impact you

An example of this is the Kitzbühel district of Tyrol where the average price of a family home is now €2.375 million and the price for small apartments typically start at €500,000.

In contrast, Burgenland remains the cheapest province to buy a house in Austria where the average price for a family home is €192,308. Although prices are going up across the province and Remax believes 2022 could be the last year that the average cost of a family home in Burgenland is below €200,000.

Also, since August, anyone applying for a mortgage in Austria is subject to new rules related to equity and terms and conditions for loans. This means there is now a mandatory deposit of 20 percent of the value of a property, including additional costs.

While the aim of this new rule is to take some heat out of the market, it means people with less money will find it harder to get on the property ladder, especially in areas with high prices.

The beautiful Tirolean countryside, with the lights of a village shining bright. Photo by Matthias Betz on Unsplash

Tyrol is one of the most popular places for a second home - which is perhaps why it is so hard to find one there. Photo by Matthias Betz on Unsplash

What are the property experts saying?

Austria has long been a popular location for holiday homes, especially in the mountains. But real estate agents have noticed big changes in the past six months – due to both changing legislation related to second homes and the cost of living.

Justin Fields, Director of Marketing at Amazing Austria, told The Local: “The market in 2022 has nose dived. We still get interest in our mailout property offers, but the English speaking markets are sitting tight at the moment. 

“We have found that those with homes or apartments in Austria are selling up. This has been caused by the new regulations on property use, with many no longer allowed to be rented for holidays – only long term – which of course only appeals to the local markets."

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However, some buyers are finding ways to work around new regulations, such as turning an Austrian property purchase into a business.

Justin said: “If there have been any hot spots it has been with those clients wanting to live in Austria and run a business in an apartment house, in either the lake or mountain areas. We have seen good interest from this side."

Peter Marschall from Marschall Real Estate in Vienna also told The Local that the luxury property market has taken a hit this year.


Peter said: "The past two years were very good and 2021 was our best in history, which was a surprise in the pandemic. The first half of this year was not very good but the market has picked up now and there are some good deals."

He added that geopolitical situations and economic factors are influencing the market in Austria, with people thinking twice before making a purchase.

Peter said: "Due to the war in Ukraine, people are not ready to make decisions quickly like before. The increase in interests rates is also having an impact, followed by inflation.

"Plus, lots of people bought property in the last two years, which isn't common, unless you're an investor."

READ MORE: Property buying rules for foreigners in Tyrol and Vorarlberg

Property predictions for 2023

So what is in store for 2023 for the property market? Will there be a glut of cheaper homes on the market? Or will the prices stay high?

Justin from Amazing Austria told The Local that he expects prices to fall across the entire property market in Austria next year. Although it might not result in an increase in transactions in all segments.

Justin said: “Predictions for 2023 are that the market will definitely slow at the lower end.

"But as is always the case, those with enough money at the high end of the property market will find a bargain as the €1.5 million home might reduce to €1.25 million.”


According to Peter from Marschall Real Estate there are two possible predictions for the property market in 2023.

Peter told The Local: "In one scenario, the political situation is not so bad and property prices and demand go down a bit but not dramatically.

"In the worst case scenario, the war in Ukraine is still ongoing or getting worse, the economy is bad and bankruptcies are increasing.

"The question is, how bad will it get? I hope not as bad as some people are predicting but it's difficult to see into the future right now."


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