Read news from:
Austria
SHARE
COPY LINK
For members

PROPERTY

Property in Austria: Real estate in high demand in Tyrol

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

Published: 28 September 2021 17:20 CEST
Property in Austria: Real estate in high demand in Tyrol
Pictured are Austrian houses. Photo by Datingscout on Unsplash

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.

One in three people in Tyrol want to buy property

Results from a new survey by the Institute for Market Research and Data Analysis (IMAD), shows one in three people in Tyrol want to buy their own property in the next three years, and one third want to buy a privately financed property.

Furthermore, 58 percent of Tyroleans believe more residential properties are being bought by foreign investors.

There are also concerns in Tyrol that property is increasingly becoming too expensive for local people. 

READ MORE: Where are real estate prices on the rise in Austria?

However, leading figures in Tyrol’s real estate industry are now criticising imposed orders on a municipal level to stop construction on privately financed apartments to make way for subsidised housing projects (mostly for local people).

Instead, they say stopping construction on private projects will only exacerbate the problem and increase prices further.

Property prices rose in Vienna in second quarter of 2021

In the second quarter of 2021, real estate prices in Vienna rose by 10.7 percent, according to new figures by Oesterreichische Nationalbank (OeNB).

In Austria, property prices rose by 12.3 percent in the first quarter, and 11.7 percent in the second quarter.

The report looked at property prices in countries across Central, Eastern and Southeastern Europe (CESEE).

Prices and demand for residential real estate in the region continues to be high, despite affordability issues starting to surface in some countries.

The report also noted the construction industry is experiencing shortages of building supplies and labour, which is being reflected in property prices in some countries.

Real estate crowd investing platform to launch in Austria

As the real estate boom in Austria continues, a new option is launching for investors in the form of a crowdinvesting platform.

Rendite Boutique will launch on October 14th with a special focus on sustainable construction projects. The platform allows users to start investing in real estate projects from as little as €50.

Dominic Lorenz, co-founder of Rendite Boutique, says the returns on properties offered on the platform will be between six and eight percent.

Lorenz adds that only projects with a positive financing commitment from an Austrian or German bank are available for investment.

READ ALSO: Vienna tenant has rent slashed because of crime-riddled neighbourhood

Member comments

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

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.

SHOW COMMENTS