Real estate in Austria

Austria is one of the most attractive countries in Europe for real estate buyers and investors due to its stable economy, a high standard of living, scenic nature and surroundings, its excellent environmental conditions, a well-developed transport system, as well as plenty of opportunities for education and employment. In this article, we will discuss the main features and advantages of property acquisition in Austria for relocation, its investment potential, and we will identify the most promising areas and developments from the perspective of residential use and a profitable investment.

Austria is consistently ranked in the top 10 countries with the best living conditions, so the purchase of real estate will be an ideal choice for those who appreciate a comfortable living environment. According to the portal Numbeo, in the Quality of Life Index by Country 2023, Austria ranked seventh out of 84. On the Environmental Performance Index (EPI) in 2022, Austria ranked 8th out of 180.

Until 2019, the Austrian capital of Vienna was the leader in the ranking of cities by quality of life from the international consulting firm Mercer for 10 consecutive years. Due to the effects of the COVID-19 pandemic and other global crises, the publication of new rankings has been suspended. In 2022, Vienna was named the world’s most comfortable city to live in for the third time in the annual ranking compiled by the Economist Intelligence Unit (EIU), which is the research and analysis unit of the British media company The Economist Group. The survey is based on an analysis of five aspects, which include stability, infrastructure, health and education systems, culture and the environment.

The key advantages of Austria and its capital Vienna include:

1. Prime location in the center of Europe and its advanced transportation system. Vienna is home to Austria’s largest airport (Vienna International Airport), a railway network, 5 subway lines, 29 streetcar/metro lines and 127 bus lines, including 24 night lines, as well as taxis. In addition, a number of European automobile routes run through the city. This means, within about an hour from the Austrian capital you can reach Bratislava and Budapest in 2.5 hours, Prague in 3.5 hours, Venice 6 hours, and Berlin in 7 hours. This is a great advantage for travelers, as well as for those who conduct international business on a regular basis.
2. Unique natural conditions. Austria offers residents and visitors scenic mountains with the cleanest air, lakes, forests, meadows and nature reserves on the planet. About 55% of Vienna is occupied by green areas and parks. Thanks to its natural wealth, Austria is famed for its resorts and excellent conditions for active recreation, as there are 10,000 km of biking paths, 22,000 km of ski trails and 50,000 km of hiking trails.
3. High level of medical care. According to the OECD Better Life Index, a comprehensive study of the well-being of the population, conducted by the Organization for Economic Cooperation and Development (OECD), life expectancy in Austria is around 82 years. This is one year longer than the OECD average. Moreover, more than 71% of those surveyed stated that they were in good health. These figures are largely due to the high level of the health system in the country. In the WHO’s global health ranking for the year 2021, Austria ranked 26th out of 195 countries.

4. First-class education. In the annual UN Human Development Index (HDI) 2021-2022, of which the Education Index is a part of, Austria ranked 25th out of 191 countries in the very high human development group. In the OECD Programme for International Student Assessment (PISA), the average student in Austria scores 491 points in reading, mathematics and science, which is higher than the OECD average (488). Vienna alone has 11 international schools, and higher education institutions in the Austrian capital are consistently ranked among the top 200 universities in the annual QS World University ranking.
5. Developed economy and industry. In 2021, the economy of Vienna grew by 5.3%, and in 2022, by 3.7%, according to preliminary estimates. In 2021 alone, over 9,000 new companies opened in Vienna.

Unsurprisingly, the population of Vienna and Austria as a whole, is growing every year. At the beginning of 2022, nearly 1,931,600 people lived in Vienna, with 32.2% comprising foreigners. By 2028, the number of Viennese is expected to exceed 2,000,000, and by 2030, 2,200,000. In early 2023, the Austrian government announced the simplification of obtaining a work permit for foreign professionals who are not EU citizens. The implementation of this reform will also increase the influx of new residents, boosting the demand for both purchasing and renting real estate in Austria.

Over the past 3 years, the cost of housing in Austria has been growing steadily. According to statistics from the Austrian National Bank, housing prices in 2020, 2021 and 2022 rose by 7%, 11.8% and 10.4% respectively. Therefore, investing in Austrian real estate allows you to not only to save money in the face of a global crisis, but also to generate a lucrative income with the help of the subsequent resale or lease of real estate.

As revealed by the statistics from the European Union Eurostat, at the end of 2021, only 54.2% of the population of Austria lived in their own homes, while the remaining 45.8% were tenants. In addition, amidst year-round tourism in Austria, short-term rentals continue to thrive.

According to globalpropertyguide.com, in Q3 2022, the average ROI for Vienna was 2.89%, ranging from 1.27% to 4.14% for different neighbourhoods and property types. In Graz and Salzburg, the average ROI is 3.75% and 2.90%, respectively.

• NBD! If you’re planning to buy a property in Austria to generate a rental income, it’s important to consider the area, surrounding infrastructure, type of property and other factors that affect the amount of potential income. In order to choose the property with the highest prospects of profitability, it is recommended to use the help of experts.

In Austria you can buy off-plan and completed properties, as well as commercial units within the secondary market and exclusive properties in historic buildings.

We have compiled a selection of the most attractive projects for both private use and investment, which can be found below:

The average price of real estate in Austria depends largely on the area, the property size and a number of other factors. The most expensive and luxurious real estate is located within the central area of the capital called Innere Stadt, where the average price per sq. m is EUR 20,987. The second and third most expensive places by the average price per sq.m. can be found in the 4th district; Wieden (EUR 10,639) and the 19th district; Döbling (EUR 90,750). The most affordable options can be found in the 16th district called Ottakring (EUR 4,948) and the 20th district; Brigittenau (EUR 4,731).

The average price per sq.m. in compact apartments with an area of up to 50 sq.m. varies between EUR 3,825 in the 17th district of Hernals compared to EUR 17,497 in the 1st district of Innere Stadt. The most budget-friendly options can be found in Brigittenau (EUR 4,193 per sq.m.), and the most expensive in Innere Stadt (EUR 16,521). Residential estates with sizes between 81–129 sq.m. are sold from EUR 4,521 per sq.m in the 12th Meidling district to EUR 16,947 in the Innere Stadt. Spacious residences with living areas of 130 sq.m. or more can be purchased for prices ranging from EUR 4,017 per sq. m in Ottakring to EUR 25,333 in Innere Stadt.

As for other popular federal districts of Austria, in Salzburg, the average price per sq. m. ranges from EUR 4,218 to EUR 10,747, whilst in Tyrol prices are from EUR 3,709 to EUR 16,942.

Vienna houses 23 districts which offer a variety of options, from prestigious central locations to more budget-friendly suburbs: