Despite the crisis caused by COVID-19, a study shows that the prices of real estate in Austria have increased.
When looking for a place to shop in Austria, you can now expect an average price of € 4,457 per square meter. Thus, the average price per square meter increased by about six percent compared to the previous year.
Expensive property in Austria
If the prices are set in relation to the average gross annual salary in the country concerned, it takes an average of 10.6 gross annual salaries to buy a new 70 square meter apartment. In European comparison, this puts Austria ahead of the pack. In Serbia, buying a condominium is by far the most expensive, requiring more than 15 gross annual salaries. The Czech Republic ranks second with 12.2, followed by Slovakia and Austria with 10.6 gross annual salaries each. In Ireland, on the other hand, a condominium is the most affordable, requiring only 3.1 gross annual wages.
Gabriele Etzl, real estate expert and partner at Jank Weiler Operenyi / Deloitte Legal, explains: “Despite the Corona crisis year, house prices in Austria continue to rise. The rise in construction costs and the strong attractiveness of real estate as an investment are the main reasons for this price trend. Currently, everything indicates that this trend will intensify in the coming months.
Austria in first place for housing initiatives
Austria is an international leader in residential construction projects, with 10.9 construction projects launched per 1,000 inhabitants in 2020. Romania and Poland follow in second and third places with 7.5 and 5.9 housing units respectively planned. . Latvia comes last, with 1.2 construction projects per 1,000 inhabitants.
Vienna remains affordable for tenants
In European comparison, rental is the most expensive in Paris. Renting an apartment costs around € 28.60 per square meter per month. Renters in London and Oslo also have to reckon with a price per square meter above € 20 per month. The largest increase in rents year on year was recorded in Lyon, with around 24%. Austria has also seen notable growth: in Graz an average monthly rent of € 9.59 per square meter has to be spent. In Vienna, on the other hand, rents remain fairly affordable compared to other European capitals. On average, a rented apartment in Vienna costs € 8.65 per square meter.
Regarding the results of the Deloitte study, Gabriele Etzl said: “Vienna remains an affordable rental city. This is due, among other things, to subsidized housing and the comprehensive Austrian lease law. The current study proves it for Austria: renting is affordable for a large part of the population, but owning is increasingly becoming a luxury.