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What’s changing for tenants and homeowners in Austria in 2023?

Whether additional aid or improvements in tenancy laws, here are the most significant changes which home renters and owners in Austria need to know about.

Published: 2 January 2023 15:26 CET

What's changing for tenants and homeowners in Austria in 2023?

Apartment buildings by a Viennese street (Photo by Oyster LIU on Unsplash)

Households to get €400 aid for heating costs

The Austrian government has agreed on additional aid to cushion high heating costs, with the payout being distributed by the provinces.

The total amount will be transferred to the regions based on population to add to existing local subsidies. The federal aid would amount to between €200 to €400 extra per household.

The heating subsidy is intended for lower-income families, minimum pensioners and welfare recipients. It will be available whether they heat with gas, electricity, pellets or another fuel.

Residents in Vienna to get €200 aid

The City of Vienna is sending out bonuses of €200 to households to help cushion the effects of rising energy costs. Viennese households will receive €200 in a new “energy bonus, ” which will benefit about two-thirds of all city homes.

Single households with a gross annual income of a maximum €40,000 or multi-person households with an income of up to €100,000 gross per year are entitled to receive the payment.

No more ‘Provision’ payments

From July 1st, 2023, the Bestellerprinzip (buyer’s principle) will apply to apartment rentals, meaning those who hire a broker will pay for the service, as The Local reported.

Currently, renters need to pay several fees when moving into a new apartment, including a security deposit and the first month’s rent.

Unless the property is rented “privately” by the owner without the brokerage firm intermediate, one of those fees includes the so-called ‘Provision‘, a brokerage fee paid by the tenant equivalent to two-months rent. The tenant pays the cost even if the property owner hires the brokerage firm.

That is set to change on July 1st 2023 when the person who hires the service will have to pay for it.

A possible rent freeze

Austria’s Social Democratic Party (SPÖ) plans to introduce a motion for a rent freeze that would prevent rent increases until 2025, as The Local reported.

Details on the plan should be debated in the party’s next meeting on January 24th. However, the opposition party has already advanced the main point of their proposal: “all rents should be frozen until 2025”. The measure comes as high inflation and increasing energy prices pressure tenants in Austria.

The SPÖ also wants to change the index used to adjust rental prices in Austria. Currently, rental adjustments are based on the consumer price index, which is tied to inflation.

However, the centre-left plans to propose that prices be adjusted on the key interest rate of the European Central Bank instead – and that they be capped at a maximum of 2 percent.

The electricity price brake

Austria will have a price cap for electricity throughout 2023 (it has been in place since December 1st and should last until June 30th 2024).

The price of electricity will be subsidised up to a consumption of 2,900 kilowatt hours, the government said. Until that limit, it will cost only ten cents per kilowatt hour – the energy price from before the current energy crisis.

Above that consumption limit, people will have to pay market prices for what they consume.

The Austrian government estimates that the measure will help Austrian homes save from €400 to €800 on energy bills a year. The Finance Ministry added that the average household’s savings would be €500.

Salzburg has new stricter laws for property-buying. (Photo by Heinz Klier / Pexels)

New property laws in Salzburg

After years of high interest in property in Salzburgerland (especially in the winter tourism areas) followed by rising prices, the state government has decided to tighten the law.

This means when someone buys a house, apartment or building land in certain districts in Salzburg, they have to prove that it will be their main residence (Hauptwohnsitz). Purchasing second homes (Nebenwohnsitz or Zweitwohnsitz) or holiday homes in Salzburg will only be permitted in designated zones.

If several requirements are not met by the deadlines, there is a risk of foreclosure and the property or land being sold at auction. The money from the sale will go to the owner, but auctions will start at 90 percent of the estimated value.

Property prices to fall

Experts have said that they expect prices to fall across the entire property market in Austria in 2023 – although it might not increase transactions in all segments. Predictions for the year are that the market will definitely slow at the lower end.

The scenario will also depend on the geopolitical situation, especially the war in Ukraine and its repercussions, experts told The Local.

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COMPARE: The best commuter towns if you work in Vienna

Public transport works well in Austria, and over the past few years, especially after the Covid pandemic, most companies have become more flexible when it comes to allowing their employees to work from other places than the office.

This means that living outside Vienna has become more possible than earlier. If you work in the capital, there are many nearby towns and cities within reach.

Baden bei Wien

Baden bei Wien, a cute spa town in Lower Austria, is listed as one of UNESCO’s World Heritage sites.

You can reach Baden from Vienna in about 30 minutes by train. If you drive, it will take you around 40 minutes.

As a place to live, Baden bei Wien offers a great mix of beautiful nature and culture. The town is located in the forested areas known as Vienna Woods where you can enjoy different hiking and biking trails just outside of town. There are also many forests to explore and wineries to visit.

Baden has a rich cultural heritage, and one of its highlights is The Kurpark, a beautiful park in centre of the town, with gardens, fountains, and historic buildings. It is also where the famous spa, Römertherme, is located.

Throughout the year, the town offers various festivals and events such as the Badener Sommernacht and the Beethoven Festival.

Unfortunately, property prices in Baden bei Wien are not cheap and the town has some of the most expensive real estate in Lower Austria. It is still cheaper to rent something in Baden than in Vienna though, as rent prices in the capital are 8.7 percent higher, according to Numbeo.

Kurpark in Baden bei Wien. Photo by Roman Vasilovski on Unsplash

Korneuburg

Korneuburg is a historic town in Lower Austria, located on the banks of the Danube River.

Because it only takes about 30 minutes to reach the town from Vienna, it is a popular place to live if you work in the capital.

Korneuburg offers quiet living near beautiful nature and water. It is a popular alternative to the more stressful and crowded Vienna.

The town has many parks, and in the surrounding area, you will find great nature spots like the hill Bisamberg, where you can enjoy marked hiking and cycling trails.

Korneuburg is known for its rich history, and some of the town’s highlights are Korneuburg Castle, which was built in the 12th century, and the cute and small old town with its narrow streets and historic buildings.

In Korneuburg, The Local found one bedroom apartments to rent for less than €700 per month.

Mödling

Mödling, located around 14 kilometres south of Vienna in Lower Austria, is known for its closeness to nature and rich cultural heritage.

It only takes 15 minutes of train travel to reach Mödling from Vienna. If you travel by car, it will take you 30 minutes.

Mödling is known for its surrounding nature and offers many hiking, jogging, and mountain biking trails. It is also famous for having one of the region’s best via ferratas (klettersteig) for beginner climbers, Mödlinger Klettersteig.

The town also has a rich cultural heritage. For example, Beethoven dedicated the music Mödlinger Tänze (Mödling Dances) to the town, and there is also a Beethoven museum where you can go and learn more about the famous composer.

Furthermore, Mödling is famous for The Mödling Wine Festival, which is held annually in the historic town centre. Here you can go to try local wines, culinary dishes, and listen to traditional music.

The Local found property prices per square meter for Mödling to cost around €3,986.

City centre of Mödling. Photo by Roman Vasilovski on Unsplash

Neusiedl am See

If you want to live near a big lake, settling down in Neusiedl am See in Burgenland might be a great idea.

This town is surrounded by Austria’s most famous wine regions, and it only takes you 40 minutes to travel there from Vienna by train, and a similar time by car.

The town is a popular summer and spring day trip destination for people living in Vienna who want to escape the city to spend some time at the lake. The town centre offers a mixture of modern and traditional cafes, restaurants and bars.

The lake is a great place for enjoying sports such as kite surfing, cycling, hiking, and swimming. Many people also visit the area for birdwatching since it is home to a diversity of birds.

Property is generally considered to be quite affordable in Burgenland, but Neusiedl am See is one of most expensive district in the province.

If you want to buy a house, the average price per square meter is €3.623.Prices for apartments are expected to be similar.

A boat of a sailing school sails in front of the marina in Neusiedl am See. (Photo by Alex HALADA / AFP)

Klosterneuburg

Klosterneuburg, located in the Vienna Woods in Lower Austria, is home to a population of 27,500.

If you are coming from Vienna, you can reach Klosterneuburg in about 40 minutes by train, while driving takes around 30 minutes via the B14 and the B227.

The town is known for its historic Klosterneuburg Monastery that was built in the 12th century and is described by Wienerwald Tourismus as “one of the most beautiful and charming forest communities in the Vienna Woods”.

Klosterneuburg has a historical city centre where you can meet up with your friends, eat at one of the restaurants, do your groceries or maybe visit some of the museums to check out an exhibition.

Since the town is located in the Vienna Woods, nature is easy accessible and you can reach many hiking trails just by walking from the city centre.

According to Numbeo, rent prices in Klosterneuburg are 50.4 percent lower than in Vienna. To rent a one bedroom apartment you have to pay around €715 in Klosterneuburg, according to Numbeo.

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Wiener Neustadt

Wiener Neustadt is a city located in Lower Austria, and a more affordable and quieter alternative to living in the capital.

The city is one of the largest rail transport hubs in Austria and is well connected to the capital, which you can reach in about 30 minutes by train. Driving takes around 50 minutes if you go via the S Autobahn/E59.

This city is also a great alternative to Vienna if you love nature since it is surrounded by it. Wiener Neustadt offers bicycle lanes and trails, including the EuroVelo 9 – a long-distance cycle path connecting the Czech Republic, Austria, and Slovenia.

Schneeberg is also located nearby, which is the highest mountain in the area and a great place to go if you want to enjoy hiking, ski touring, and some great views.

The price for buying an apartment in the centre of Wiener Neustadt is around €3,500 per square meter. Rent prices are in general 37 percent lower than in Vienna, according to Numbeo.

Woman biking through a park in Wiener Neustadt. Photo by Michael Pointner on Unsplash

St. Pölten

St. Pölten is the capital of Lower Austria and it is known for having both an entrepreneurial and an art scene.

From Vienna, you can take a direct train and reach St. Pölten in about 20 to 30 minutes, whereas driving takes you one hour. Using the train is very convenient since the train station is centrally located in the old town of St.Pölten.

The city has a cute historical town, with small streets and historical buildings like the church, The Diocese of Sankt Pölten. And if you feel like enjoying some cultural performances, you can visit the famous Festspielhaus.

St. Pölten offers affordable living in a city near nature. The mountain Schneeberg is very nearby and it does not take you long to get there if you want to enjoy hiking, climbing or skiing.

The Local found one bedroom apartments to rent in the city for less than €600 per month.