Property For Members

Is it the right time to think about buying property in Austria?

Aaron Burnett
Aaron Burnett - [email protected]
Is it the right time to think about buying property in Austria?
Austria's property market has seen a particularly steep fall recently. (Photo by Anna Rosar on Unsplash)

With the recent downturn in Austrian house prices, buyers may have more windows to snap up their dream home in the alpine republic.


A Remax survey this week found that overall property sales around the country have fallen by around 25 percent, with €5.6 billion in sales in the first half of 2023, compared to the €7.55 billion seen over the same period last year.

All federal states except Burgenland saw a fall, but Salzburg, Vorarlberg, and Lower Austria have seen particularly sharp downhill trends. Vienna, meanwhile, has experienced one the sharpest drops anywhere in Europe in recent years – with the first-ever Bloomberg City Tracker having registered a 12.2 percent fall in May 2023 compared to May 2022. The capital’s downward trend has continued since.

READ ALSO: What falling house prices in Austria mean for buyers and sellers

Experts say one of the biggest reasons for this is the high threshold for deposits in Austria, meaning that many people cannot qualify for a mortgage. The number of mortgages issued to Austrian households has gone down more than 60 percent since early 2022.

David Savasci, Co-Founder and CEO of Miracl, a Vienna-based mortgage broker, says prospective buyers are being hit from two sides.

“On the one hand you have these strict guidelines, and then on the other, you have the higher interest rates,” he tells The Local. “It’s become more difficult for many people to buy a property and this is one of the big reasons for falling demand.”

At the same time as buying has become increasingly out of reach for more people in Austria, renting is increasingly an attractive option. Home ownership in Austria, along with other German-speaking countries, is the lowest in Europe partly due to subsidised housing, says Savasci – with one-fourth of Vienna residents living in a city-owned apartment.

Savasci also says he expects that the recently announced rent cap – due to start in 2024 and last for three years – will only help reinforce recent trends for a while.



An opportunity to buy?

For those who can manage to qualify under Austria’s strict mortgage rules, the market is now increasingly favouring the buyer.

“Buyers once again have the opportunity to really negotiate on price,” says Savasci. “They’re not just one of many offers put in to buy the same place anymore.”

That said, interest rates remain an unpredictable variable – meaning that buyers may want to consider a mortgage broker.

“Comparing rates via a broker like Miracl is particularly worthwhile right now, as each bank is offering different advantages and rates are fluctuating so much at the moment that it’s virtually impossible for buyers to organise the best financing right now,” says Savasci.

Germany or Austria: Where’s the best place for foreigners to buy property?


Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also