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PROPERTY

Is now a good time to buy property in Austria?

Here's what you need to know about what is happening in the property market this year before buying a home in Austria.

Published: 7 April 2023 15:45 CEST
Updated: 2 May 2023 16:48 CEST
Is now a good time to buy property in Austria?
Vienna has some of the most expensive properties in Austria (Photo by Andy Wang on Unsplash)

Buying a property in Austria is not easy or cheap, and it has become more expensive in 2022, with higher prices also in the early months of 2023, according to a REMAX survey.

Apartment prices are averaging approximately €264,000 in 2022, a 9 percent increase from the year before and 36 percent more expensive in a five-year comparison, according to the report. The most costly province is Vorarlberg, followed by Vienna, which overtook Tyrol, THE Austrian broker association Remax said.

However, this will likely change over the year as demand decreases and supply increases noticeably. 

READ ALSO: EXPLAINED: Property buying rules for international residents in Austria

“In addition to rising interest rates and tighter lending guidelines, Corona aftershocks, high inflation, and global flashpoints have also contributed to the general uncertainty, but the market has turned around year-on-year, with demand down significantly and supply up noticeably”, said Bernhard Reikersdorfer, managing director of REMAX Austria.

He added: “If the general conditions on the market do not change, prices are expected to trend downwards in 2023. Therefore, buying a condominium for owner-occupancy, but also as a form of investment and for pension provision, remains very interesting.”

What is the current real estate market in Austria?

The typical apartment on the sales market was 68.6 square metres, similar to the flats put for sale in 2021.

The largest apartments were in Upper Austria (74.9 m²), Lower Austria (71.7 m²), Vorarlberg (71.5 m²) and Tyrol (69.9 m²), and the smallest in Vienna (65.3 m²), Styria (67.0 m²) and Salzburg (67.1 m²).

Every fourth apartment registered in Austria cost less than €160,193, as the RE/MAX analysis of all registrations in 2022 shows. Still, housing prices went up in 2022, with increases of up to 9.5 percent for more expensive properties.

READ ALSO: Property in Austria: Can I still buy a holiday home in Salzburg?

Prices per square metre averaged €4,156 in Austria, with the highest prices in Vienna (€5,437), Vorarlberg (€5,065), and Salzburg (€4,634) and the lowest in Burgenland (€2,245) and Styria (€2,769).

What’s the situation in Vienna?

Despite the declining volume, Vienna’s total transaction value in 2022 grew for the third time in a row: from €5.17 billion to €5.41 billion. This means that the Vienna residential market accounts for 36.5 percent of the federal total. In 2021, it was 34.7 percent. 

There have also been significant price increases, as apartment prices in Vienna went up 7.4 percent per year on average over the past ten years. 

A quarter of all apartments traded in Vienna in 2022 cost less than €208,000. This upper limit to the entry-level price range has risen by 11.8 percent in a year.

READ ALSO: EXPLAINED: How Austria’s new property buying rules could impact you

Since 2017, the areas of traded apartments in Vienna have been increasing. In 2022, it came to 65.3 m². This is the largest area since 2017; before that, larger living areas were also the rule in some cases.

In Vienna and the Tyrol, prices per square metre have risen by a total of +45.2% and 45.3% in the last five years, earlier in the Tyrol and later in Vienna. In the Austrian capital, the increases are the highest in the country. 

The cheapest Viennese districts are Hernals, Meidling and Simmering, while apartments in the Inner City are the most expensive, with entry prices at € 1.82 million. Other neighbourhoods also have higher price tags: one in four buyers of an apartment in the districts of Neubau, Döbling, Wieden and Hietzing invested more than €600,000.

According to REMAX experts, the statistically lowest square metre prices were in Brigittenau and Rudolfsheim-Fünfhaus.

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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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