Living in Austria remains attractive. No wonder, clean air and water, idyllic landscapes, and safe cities continue to score points – with both domestic and international interested parties. Experts even see an increase in demand and a related rise in rental and purchase prices. The individualization of society is also reflected in housing needs. While some are trading their country estate for an old-town apartment, rural areas are booming simply because housing there is still affordable.
High prices in metropolitan areas
Locations that are of interest to a particularly large number of people are characterized not least by high purchase and rental prices. Especially in Austria's metropolitan areas such as Vienna and its surroundings, apartment and property prices are currently relatively high and are rising steadily – depending on the district and the location of the apartment. In addition to Vienna, Salzburg and Linz are also currently enjoying great popularity. In the cities, high rental prices in some districts and the condition of the apartment often deter potential tenants. "Since the beginning of the year, there has been another increase in prices per square meter. For owner-occupied properties, there was an increase of around 7.2% in January 2013, which is currently around 4,000 euros per square meter. For rentals, the increase was about 4.1%, which entails gross rental prices of approximately 14 euros per square meter," says Ms. Pichler from Immobilien Wien BAR regarding the current price development. The expert also advises taking enough time for the apartment search, as the current shortage of supply in Vienna and other Austrian cities influences prices and it can take time until a suitable property can be found. In addition to the shortage of supply in Vienna, the improvement of infrastructure around new residential centers, such as the residential complexes around the new main train station, where the first apartments could already be occupied in 2013, plays a decisive role, says Pichler.
Construction projects in the Vienna area
Recent urban growth forecasts state that the area surrounding Vienna will grow strongly in the coming years – due to a lack of space in Vienna and high housing prices. Some construction companies have recognized the trend and are moving to the outskirts of the city to build new residential projects that combine city feeling and nature and are to be offered at affordable prices. In particular, in Lower Austria and northern Burgenland, new residential projects are to be created in the future that will meet the latest trends and satisfy the needs of those looking for housing. Construction companies such as Gedesag or Süba- Bau & Baubetreuung AG are working on projects that are to be completed in the coming years in Klosterneuburg, among other places.
Mobile people rent
Austrians are mostly tenants. Homeowners account for around 40 percent each. Apartment owners are in the minority, and this is unlikely to change in the foreseeable future. However, increasing mobility is certainly an indicator that temporary living is likely to increase. After all, anyone who works in Istanbul today and in Immenstadt tomorrow does not tie themselves down with real estate ownership. You can terminate the rental agreement more easily and also have no major maintenance obligations. With the increasing number of freelancers, renting is also cheaper because it is more manageable. This calculation only changes when you really stay in one place for a long time – for example, when family appears on the life plan. Then buying is more worthwhile.
