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PROPERTY

Property news in Austria: Numbers moving from cities to countryside rise

Stay up-to-date on the latest Austrian property news with The Local's weekly roundup.

Published: 14 September 2021 16:06 CEST
Austria property news
Image by Dimitry Anikin.

Thinking of buying a house, moving house or investing? Or are you just curious about the property market in Austria? 

Here’s what you need to know this week.

Nationwide growth in real estate sales

A new report by REMAX, the largest real estate network in Austria, has revealed around 77,000 properties were sold in the first half of 2021 – an increase of 14 percent on the previous year.

The biggest drivers of growth were in Lower Austria (+2,421), Vienna (+1,828), Upper Austria (+1,324) and Carinthia (+1,220). The lowest growth was recorded in Salzburg and Styria.

REMAX suggests the increase is due to more time spent at home as a result of the pandemic and more people turning to property as an investment. 

However, in Burgenland, the increase in the number of properties sold in the first half of this year was even higher at almost 30 percent. 

But the southern Burgenland districts of Jennersdorf, Oberwart, Güssing and Oberpullendorf continue to be among the districts with the cheapest property prices in Austria. 

The most expensive retail sale in Burgenland was a retail park in Kittsee, in Neusiedl am See, for €23 million.

An increase in moving from the city to the suburbs

According to an ORF article, the demand – and prices – for homes in urban suburbs in Austria is increasing as more people seek to swap city life for the countryside.

Figures show that in 2020 more people moved from cities, such as Linz, Wels, Graz and Vienna, to the surrounding suburbs, known in Austria as “the bacon belt” (Speckgürtel), than the other way around.

For example, in 2016 more people moved to Vienna than left (+1,138), but in 2020 more people left the city than moved in (-3,431). 

READ MORE: Working in Austria: A roundup of the latest jobs news and information

Despite the trend, Rudolf Giffinger, Head of the Urban and Regional Research Department at the Vienna University of Technology (TU), told ORF that some people may struggle to move to the countryside as financing options are “insufficient” when compared to rising prices.

Additionally, the trend of moving out of urban centres to more rural areas is cited as socioeconomic and being driven by people that can afford it, as well as those who can take advantage of new flexible working conditions.

Der Standard reports that single-family homes and plots of land are in high demand in the bacon belt, with many brokers revealing they have long lists of people searching for a new home outside of city centres.

The Graz bacon belt is also expanding – along with prices. Plots that were €25 per square metre two years ago, are now selling for €100 per square metre.

Students save money in shared apartments

A recent Immowelt survey shows that students can save around €200 per month by living in a flat share rather than renting a studio apartment up to 40 square metres.

The study looked at the rent prices for studios and shared apartments in 12 university cities, including Vienna and Innsbruck.

The results revealed students in Vienna can save €213 per month by opting for shared accommodation. In Innsbruck and Dornbirn, it was €207 a month.

However, in Steyr, Upper Austria, the saving was only €100, and in Villach, Carinthia, it was €90.

In Vienna, the average cost for a studio apartment is around €550, but a spacious apartment between 70 to 90 square metres costs around €1,010.

FOR MEMBERS: The five best destinations to visit in Austria this summer

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LIVING IN AUSTRIA

‘Haushaltsversicherung’: How does Austria’s home insurance work?

'Haushaltsversicherung' is one of Austria's most popular types of insurance. It is not mandatory, but it is certainly worth evaluating, especially as it comes with many possible add-ons.

Published: 2 May 2024 15:22 CEST
'Haushaltsversicherung': How does Austria's home insurance work?

Austrians are certainly obsessed with insurance coverage, and one of the most popular and common ones is known as the “Haushaltsversicherung”—if you don’t have it already, you have certainly heard of it. Here’s what you need to know about household insurance.

Firstly, this insurance covers damages to “all movable objects within your own four walls,” as Austria’s Chamber of Labour (AK) explains. This includes furniture, carpets, and electrical appliances. It would also cover damages caused by fire, storms, water, burglary, and glass breakage. 

Certain types of insurance, such as private liability insurance or mandatory dog liability insurance, are almost always combined with household insurance—another reason why the Haushaltsversicherung is so popular in Austria.

READ ALSO: What kind of insurance do I need to have in Austria?

However, there are enormous differences in premiums and benefits, so experts suggest you check precisely what you need before taking out insurance. The AK also says you should talk to an insurance advisor to learn more about your specific case and needs, particularly if you have any valuables in your home. 

Additionally, they said: “It makes sense to check your policy every few years to ensure that you are properly insured. This guarantees that the sums insured and the risks included are up-to-date and sufficient”.

What should I keep an eye on when reviewing policies?

Of course, different companies have their own offers, and they are often highly customisable to fit your apartment and lifestyle—some things you need to be aware of, though.

Certain policies are tied to the size of your apartment, while others will have a lump sum regardless of the size of your place. Policies also usually differ depending on whether you live in an apartment or a house. 

While most insurance will cover glass breakage (such as when a hail storm breaks your window, for example), some might have it as an add-on (wahlweise mit Glasbruch). 

You may also add other types of insurance to your household insurance, the most common being mandatory dog liability insurance (Hunde-Haftpflicht), legal insurance (Straf-Rechtsschutz), and sports insurance.

READ ALSO: Should I take out insurance before skiing in Austria?

It’s worth it to read each policy, but you should know some common clauses beforehand. For example, insurance often won’t cover burglary costs if your house has not been properly secured and locked. This might seem obvious, but since door knobs don’t open from the outside without the key, people often leave their homes, especially for short errands, and don’t lock the doors all the way. Insurance and safety experts recommend you get in the habit of locking your home doors.

It’s also important to check if your insurance will pay you “Neuwert” or “Zeitwert” in case of damage. 

A Neuwert means the insurance will pay for a replacement object, regardless of how old the stolen or broken one was. However, many insurance policies still contain the so-called “Zeitwert”, something like “current value”, so you wouldn’t receive an amount that could pay for a new product. Instead, a loss of value of around 10 percent per year could be expected for most objects.

What should I do if there is damage to my home?

If you see any damage to your home from burglary, accident or other types, you need to notify your insurer immediately and report the damage you have suffered. 

The insurance conditions usually stipulate a maximum period of three days for reporting a claim in property insurance. The Chamber of Labour also recommends that you send a written notification of the claim (preferably by registered mail, they add).

“Make a list of all items that have been destroyed or lost and enclose it with your report to both the insurer and the security authorities”, they said. And, of course, in the event of fire burglary or robbery, always inform the fire department or police authorities.

READ ALSO: EXPLAINED: The Austrian insurance for if you get sued – or want to sue someone

How long does the insurance last, and how much does it cost?

The insurance term is usually specified in the counteract. In general, though, you can terminate it after the third year with one month’s notice if the contract has not already expired.

If you move house or move abroad, you can terminate your household insurance contract. You can cancel the insurance the day before the move begins (preferably by registered letter).

If you do not exercise your right of termination, the insurance will remain valid during the move and in the new home.

Regarding prices, they can be as low as a few euros a month (such as insurance specifically tailored to students living in shared flats) to several hundred a month if you have a large place with plenty of valuables or include several add-ons. 

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