Property prices in Austria

The 2021 residential property market report for all federal states plus selected cities and regions

Property prices in Austria

The 2021 residential property market report for all federal states plus selected cities and regions
Engel & Völkers Research

Property prices in Austria

How are property prices developing in Austria in 2021? Use our maps and graphics to obtain information on current prices, price developments and trends on the residential property market. We have investigated Austrian property prices in all federal states plus twelve selected cities and eight tourist regions for you.

Compare property prices in Austria’s cities and regions

1. Overview – How robust is the market for houses and apartments?

Investments in Austrian property are considered to be particularly stable. Houses and apartments are therefore correspondingly very popular as secure investments. Strong demand logically has an impact on prices and rents. 

Not even the corona pandemic, which began in March 2020, has had any negative impact on property prices. It merely resulted in a temporary fall in the number of transactions. In the months March to May 2020 in particular the hesitancy caused by the pandemic in combination with the closure of estate agency offices led to a significantly lower volume of residential property sales than in 2019. Overall, the number of transactions in 2020 decreased by 9.4 percent (freehold apartments, FHA) respectively 9.5 percent (detached/semi-detached houses, DSDH) over the previous year. Figures had, however, already returned to a normal level by June 2020.

2. Segments – How are property prices in Austria developing?

Prices for houses and apartments are rising steadily throughout the country. In all nine federal states prices for apartments (FHA) rose from 2019 to 2020, with increases ranging from 3.9 percent (Styria) to 12.4 percent (Burgenland). 

The situation was similar for the detached and semi-detached house (DSDH) segment - in Vorarlberg the average purchase price even jumped by 14.6 percent. The only deviation in this segment was in Vienna, where there was a slight market correction (–3.5 %). In general, further rises in property prices should be expected throughout Austria.

Click on the federal state for more information and the relevant market report

3. Property prices in Austria – Which areas are the most expensive?

Property price levels in Austria vary significantly from region to region. Vienna , the capital, is most expensive, followed by the federal states of Vorarlberg, Salzburg and Tyrol. Average prices in these regions exceed EUR 4 200 per square metre (FHA) respectively EUR 540 000 (DH/SDH) in all cases. This is considerably more than in any of the other states.

In Carinthia, Lower Austria and Upper Austria prices ranged from EUR 3 100 to 3 300 per square metre (FHA) respectively EUR 250 000 to 310 000 (DH/SDH). These regions are followed by Styria, where, despite higher prices in the major city of Graz, the average price for apartments is EUR 2 560 per square metre and, last of all, by Burgenland, where houses in rural areas achieve average prices of EUR 183 000.

For years now all Austrian cities have been experiencing a continuous upward trend in prices for residential properties, with prices for apartments in Bregenz, Wels and Linz rising by over 40 percent since 2016. House prices in Klosterneuburg and Innsbruck have even experienced price increases in excess of 50 percent since 2016.

Sales prices for condominiums by district

- Immobilienpreise Österreich: Verkaufspreise für ETW nach Bezirk

In 2020 there was a particularly large rise in demand for houses in green locations, above all in the areas around the country’s major cities. Parishes with good connections to cities such as Vienna, Graz, Linz or Salzburg have thus attracted greater attention. Young families with children in particular

prefer detached houses in green locations to urban apartments if they have the corresponding financial means. Such properties with gardens are, however, extremely rare and it will therefore continue to be impossible to satisfy demand in the coming years. 

During the pandemic not only has location become more important, but also quality of life. Larger homes are thus correspondingly sought-after. This applies in particular to properties which offer the option of setting up an additional home office.

A selection of freehold apartments currently on offer in Austria

5. Rental market – Are rents increasing in Austria’s cities?

Austria continues to have a very low level of home ownership, namely only 48.8 percent, which is far behind the European average. Only neighbouring countries Germany and Switzerland have lower levels of home ownership. 

The pronounced Austrian rental market is experiencing the same upward trend as in the case for property prices. According to figures published by Statistik Austria, in the period from the 4th quarter of 2019 to the 4th quarter of 2020 average net basic rents rose by around five percent, to EUR 6.30 per square metre. Prices in cities such as Vienna, Salzburg, Innsbruck or Bregenz, which have double-digit average rents, are, however, far in excess of this level. 

Since the population in urban areas and their surrounding districts is expected to continue to grow, property prices and rents in Austria are likely to rise to even higher levels throughout the country.

Forecast: Top 10 locations with the highest population growth (2018 to 2040)

- Bevölkerungsentwicklungprognose.png

6. Holiday properties – Is a holiday home a good investment?

Austria’s tourist regions attract millions of domestic and foreign visitors both in the skiing season and also in the summer. The annual number of overnight stays has been climbing steadily since the mid-1990’s and the interruption to this trend in 2020 and 2021, due to the corona pandemic, was an exception. Post-pandemic the industry is expected to recover quickly and return to its former level in 2019, when more than 150 million overnight stays were recorded in Austria. 

The idea of buying a holiday home therefore seems a good one. In this regard it is, however, important to be aware that this type of property commands very high prices in Austria. Dream properties in the Kitzbühel Alps; Salzkammergut region or directly on the shores of the Wörthersee lake achieve prices well in excess of five million euros. Since demand for properties in tourist areas continues to be strong Engel & Völkers forecasts further increases in the prices for Austrian holiday homes.

Prospective buyers beware! Legal regulations can make it difficult to rent out holiday homes and also vary from one state to another. We therefore recommend that you discuss your plans to buy a holiday home with local Engel & Völkers advisers in Austria before making any purchase.

7. How high are prices for apartment buildings?

For many years now, the Austrian market for residential investment properties has been a very dependable, lucrative segment for investors and developers. Thanks to its stable environment combined with the current dynamic of strong demand coupled with a decreasing number of available properties, the segment represents an extremely attractive scenario for investors with both long- and also short-term investment strategies. Since prices for freehold apartments will continue to have upward potential in comparison to other international locations in the future,it is reasonable to assume that the Austrian residential investment property market will also offer excellent investment opportunities.

Interest rates are still low, contributing to further rises in prices for residential investment properties since against this background investors will, in the coming years, be prepared to accept low yields of under three percent. In addition to Vienna, the main market, the regional state capitals of Graz, Linz, Salzburg and Innsbruck are also performing very well. Opportunistic investors will also find potential in Austria’s smaller cities and towns.

8. Local market reports: What do properties cost in different cities and regions?

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