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PROPERTY

Property in Austria: A roundup of the latest news and info

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

Published: 2 September 2021 16:36 CEST
Austria property

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

Here’s our weekly property wrap. 

Tyrol is six times more expensive than the east of Austria

A new study by Immowelt has revealed the Kitzbühel district in Tyrol is the most expensive region for property in Austria.

The average price for one square meter in the alpine district is €8,050 – six times more than the average price in the east of the country.

The report states: “This is due to numerous luxury apartments in the popular ski resorts: Chalets in Kirchberg or penthouse apartments in Kitzbühel for several million Euros are not uncommon on the market. 

“This offer is aimed more at well-heeled investors. There are hardly any affordable apartments or houses to buy yourself.”

READ MORE: Five common apartment scams in Austria

Kitzbühel recently recorded the highest property sale for an apartment or house in Austria. In the second quarter of 2021, a single-family house sold for €10.3 million. 

The next expensive spot for property is the city of Innsbruck (also in Tyrol) at €6,560 per square meter, followed by €5,860 in Salzburg city and €5,160 in Hallein in Salzburg.

However, in Salzburg city most properties are not purchased to live in but to rent out to tourists.

Vienna was listed at the eighth most expensive place in Austria for property with the average price per square meter at €4,880.

There is also lots of construction taking place in Vienna to keep up with a growing population and high demand for residential property.

Lower Austria and Burgenland are the cheapest places for property 

The Immowelt study revealed Lilienfeld in Lower Austria and Jennersdorf in Burgenland as the cheapest places to buy property.

The average price per square meter in Lilienfeld is €1,370 and in Jennersdorf it is €1,380.

FOR MEMBERS: Everything that changes in Austria in September 2021

According to Immowelt: “One of the reasons for this is that the number of residents in Lilienfeld is declining and the demand for living space is therefore not as great as in the flourishing western districts. 

“Instead of new buildings, the market is determined by cheaper existing properties.”

Warnings of a real estate bubble

The Empirica Research Institute is warning of a real estate bubble across Europe.

Handelsblatt reports that as soon as interest rates rise, rent prices will also have to go up.

Reiner Braun, CEO of the Empirica Research Institute, said: “Of course we have a real estate bubble.”

READ ALSO: Water, sewage and garbage costs to increase in Vienna next year

Annika Winsth, chief economist at Nordic bank Nordea, has also issued a warning of overheating in the European property market.

This comes as the Remax broker network recorded 76,589 property transactions in Austria in the first half of 2021. 

The total value of sales was €19.6 billion – 20 percent more than in 2020.

The real estate market in Vorarlberg is booming

From January to June of this year, €1.24 million worth of real estate transactions were carried out in Vorarlberg – an increase of 15 percent on the previous year.

Bregenz, Dornbirn and Feldkirch are the districts with the highest growth in property transactions in the province.

In an article on Vorarlberg Online, Bernhard Reikersdorfer, Managing Director of Remax Austria, said many people are purchasing property in Vorarlberg as an investment or as an additional pension provision.

Did you know?

The most expensive real estate sales in Austria in the first half of 2021 were in Vienna.

An office building complex in the 12th District sold for €120 million, followed by an apartment building in the 1st District for €44 million.

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PROPERTY

Will my Austrian home insurance cover storm damage?

Severe storms have hit Austrian cities in recent weeks, and experts say extreme weather events will only become harsher and more frequent as the climate crisis worsens. What are your rights when it comes to insurance claims?

Published: 11 June 2024 12:57 CEST
Will my Austrian home insurance cover storm damage?

Austria has been hit by severe storms in recent summers, and the cost of the damages have increased yearly, now amounting to about €1 billion every year, according to the Austrian Insurance Association. 

The insurance industry expects further record loss figures for 2024 in view of the increasingly significant effects of climate change. 

But what are the implications for the those people in Austria who are affected by the damages? Will any of their insurance cover losses caused by natural disasters or storms?

Limited coverage

Austria’s Chamber of Labour (AK) told Austrian media that most household and homeowner insurance policies (Haushalts—und Eigenheimversicherungen Produkte) provide minimal coverage for damage caused by heavy rain, flooding, or mudslides, often between €4,000 and €10,000.

However, higher sums could be agreed upon individually with insurance companies, but for an extra charge. AK noted that in certain flood-prone areas, clients might not even get coverage at all.

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

Austrian insurer Wiener Städtische urges people to check their insurance policies and evaluate whether they need to be updated. Most have low coverage amounts for damages, or the policyholder has not updated the value of properties in case of extensions, renovations, or pool additions, for example.

Household insurance (Haushaltsversicherung) covers household items, while homeowner’s insurance (Eigenheimversicherung) covers damage to the house itself. The latter also covers damage after a storm, such as a torn-off roof.

According to a Der Standard report, a comprehensive insurance policy on your car might pay for storm damage, depending on the type of cover. Still, standard liability insurance (Haftpflichtversicherung) will not pay anything due to storm damage.

It’s important to pay attention to the policy details. For example, if a vehicle has been damaged by water, you shouldn’t try to start it, or it could destroy the engine and insurance companies will not cover the damages anymore.

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

If you suffer damage to an insured property, you should report it to the insurance company as soon as possible in writing. Most companies have a website or app that makes this easier. 

In case the insurance company does not refund your expenses, you could claim them as “extraordinary expenses” (Katastrophenschäden) in your employee tax assessment (Arbeitnehmerveranlagung). Businesses and freelancers can claim the costs as a business expense.

Most expenses can be claimed, including costs for the necessary construction of a new building, purchase of new furnishing (except for decorative items), clothing (up to €2,000) or supplies. However, you cannot claim costs in connection with a second home or luxury goods.

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