Are you planning to sell your property in Austria fast? Property prices in Austria have been on the ascendency. They have risen by over 39 percent since 2010, according to a report by ImmoDEX.
A new home in Austria costs €359,000 on an average. Home prices have risen across the board. The average cost of an apartment in Styria is now €301,000), while that in Burgenland is €260,000. Average Home prices in Lower Austria are €338,000.
It is in the capital city of Vienna, where homes are more expensive, costing an average of €471,000 – up by 22 percent since 2010.
Even the value of older apartments and houses has risen by 35 percent since 2010. Christian Nowak of ImmobilienScout24 says, “Anyone who purchased property in 2010 can be very happy from today's point of view."
However there is a view that it is alarming that property prices are rising so fast in Austria. Georg Spiegelfeld, of the Austrian brokerage network Immobilienring IR says. “There are not enough properties available and this problem will increase. Around 300,000 people are expected to move to Vienna over the next few years… and the city has not prepared for this.”
He adds that the only way forward for the Austrian property market is to “build, build, build and redesign”.
So who is looking to buy properties in Austria online? Austria gets a fair share of foreign investors because of the massive increase in property prices here over the last few years. Average home prices in the Austrian capital of Vienna have increased by 55.6 percent over the last 5 years, which is phenomenal.
Russians are the biggest buyers of properties here, says Christian Sommer, managing director for Engel & Völkers in Vienna in an interview with the Financial Times. He says, “We see most foreign buyers come from Germany and eastern Europe but Russians have invested here in larger numbers over the past decade. When the top of the market slows, it affects the rest of the market.”
However, there are some concerns that remain. Home prices of luxury properties haven’t really shot up as much as the rest of the market in recent years. Richard Buxbaum, an estate agent based in Vienna says, “Properties at the top end aren’t selling as quickly as a few years ago and added to an overall slowdown,” he says. “But we see this as a small blip rather than a long-term trend.”
But the foreign interest in Australia and especially in Vienna remains high. This is combined with a massive local demand from Austrian buyers. Alex Koch de Gooreynd of Knight Frank says, “Vienna expanded its pool of international buyers beyond Russia and eastern Europe during the strong years. More Italian, Swiss and American buyers are now part of this market.”
The Russian interest has waned slightly in recent years because of the trouble in the Russian economy. Even so foreign buyers make up for 40 percent of the sales in Vienna. This is certainly encouraging and is certain to propel the property market in Austria further ahead.