Read news from:
Austria
SHARE
COPY LINK
For members

RENTING

IN NUMBERS: Where are rental prices rising most in Austria?

Offer prices for rental apartments in the Austrian state capitals have increased by up to 11 percent - where are the worst places?

Published: 4 June 2024 13:38 CEST
IN NUMBERS: Where are rental prices rising most in Austria?
A general view of apartment buildings in Vienna's suburb Seestadt, Austria. (Photo by JOE KLAMAR / AFP)

Rents in Austria have been on the rise, with prices soaring by 11 percent in the first quarter of 2024 compared to the same period last year. The inflation growth and the surge in interest in rental apartments, which has grown significantly, up to 35 percent, according to a new report by real estate agency ImmoScout 24, are the key factors behind this. 

Markus Dejmek, Head of ImmoScout24 Austria, points out the shift in the real estate market dynamics. He says: “While the pandemic initially sparked a surge in interest in property purchase, with many people wanting to move out into the countryside, the market has now taken a different turn.

“Rental apartments have been in high demand for a considerable period. The somewhat subdued property purchase market, due to rising interest rates, stricter lending guidelines, and economic uncertainty, is now exerting pressure on the rental market, leading to an increase in demand.”

The impact of the rising rental prices is particularly pronounced in the capital city of Vienna, where rental offers have become more expensive, with an increase of 11 percent in the first quarter of 2024 compared to the same period last year. The price per square metre is now € 18.7, a figure that is only surpassed by Salzburg and Innsbruck, according to the research. 

READ ALSO: Is it better to rent or buy in Austria right now?

The Tyrolean capital has the highest rents in Austria, at €23.4 per square meter, followed by Salzburg at €19.9. Thus, the already high-priced western provincial capitals have increased by 5 percent (Salzburg) and 9 percent (Innsbruck) compared to the previous year. 

With an increase of 10 percent, rental apartments on offer in Bregenz have now also exceeded the €18 mark.

Rental properties are particularly sought-after in Salzburg. Demand increased by 35 percent in the city in the first quarter of 2024. In Vienna and Innsbruck, interest in the rental market rose by a quarter. The real estate platform ImmoScout24 also recorded 33 percent more people looking to rent in St Pölten.

"Overall, we are seeing an increasingly tense situation for those looking to rent in the previously known hotspots of Vienna and the western provincial capitals due to increased prices and demand. In addition to boosting the purchase market, efforts to stimulate construction activity are very important in this context," said Markus Dejmek.

READ ALSO: The best commuter towns if you work in Vienna

The analysis carried out in April 2024 is based on 97,513 data points and around 286,788 inquiries from 2022 to 2024 from the offer data published on ImmoScout24.at. The basis is gross rents, i.e. the net rent plus operating costs and excluding heating and electricity costs.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

RENTING

Am I allowed to sublet my rental apartment in Austria?

If you are a renter and want to rent out your apartment or get someone to rent a spare room, you need to know the Austrian laws first.

Published: 19 June 2024 10:05 CEST
Updated: 22 June 2024 09:16 CEST
Am I allowed to sublet my rental apartment in Austria?

With the cost of living on the rise and housing demand increasing, subletting has become an attractive option for many tenants in Austria. It can help offset rental costs or generate extra income. However, it’s important to consider the legal implications and potential risks before proceeding.

Firstly, Austrian law defines a main tenancy when the owner rents a house or flat. If the primary tenant sublets a flat or living space, this constitutes a sublease, according to the definition by the state-backed organisation MieterHilfe.

An entire flat can be sublet or just a part of it (such as a room for sole use, including shared use of the kitchen, bathroom, and toilet).

READ ALSO: The vocab you need to understand apartment ads

Can I sublet the property I rent?

It depends on many factors. Firstly, though, the Tenancy Act, the set of rules that guides every rental agreement in Austria, explicitly does not allow a main tenant to sublet the entire rental property on a permanent basis without the landlord’s permission.

This means that if you want to move out of the place you are renting and then sublet it to someone else, the main tenancy agreement can be terminated. The grounds for termination exist even if the main tenant passes on the rental property in its entirety free of charge unless the rental property has been passed on to close relatives of the main tenant who have already lived there with them.

So, if you are the main tenant in an apartment living with a roommate who sublets, it’s recommended that you make the necessary changes to the rental contract if you leave the place. You should then ask the person who is staying there to be the new main tenant. 

In Austria, rental agreements often include specific points detailing the types of subletting that are allowed—and usually prohibiting subletting the entire place. 

READ ALSO: Is it better to rent or buy in Austria right now?

What if my rental contract doesn’t specify the rules?

If your contract does not include a clause on subletting, the rules that apply are those in the Tenancy Act.

As mentioned, the complete subletting of the rental property – with you effectively and permanently moving out – constitutes grounds for termination of the rental agreement. 

However, there’s an exception: “The reason for termination is only not given if the main tenant is only temporarily absent (e.g. a one-year stay abroad for training purposes) and it is clear from the outset that the main tenant will be living in the rented property again regularly in the foreseeable future.”

Partial subletting, such as renting out a room, is generally permitted. The property owner can only forbid it in cases where their “important interests are violated.” MieterHilfe mentions an example of the subtenant already known as someone with “unpleasant behaviour” or if there could be issues with overcrowding in the flat. 

READ ALSO: What happens when my rental contract expires in Austria?

There are also specific rules on how much rent can be charged for a sublease. In general, if one of two bedrooms is rented (with shared use of the remaining part of the flat), the main tenant can only charge a maximum of 75 percent of the rent and 50 percent of other rent “components”, such as Betriebskosten, or “operating costs”. 

There are stricter rules for those living in municipal housing and under certain provisions of the Tenancy Act, so it’s always worth consulting with renters’ associations or a lawyer if you have any questions or specifics you’d like to discuss. 

SHOW COMMENTS