From measuring the changes in residential real estate prices, the House Price Index (HPI) in Austria rose from 142.85 in January 2021 to 150.77 in July 2021, setting the highest ever recorded level of all time. The largest drivers of growth were in Lower Austria (+2,421), Vienna (+1,828), Upper Austria (+1,324) and Carinthia (+1,220). At the same time, Salzburg and Styria had the lowest growth indicators. As stated by the OeNB, the more pronounced price growths since the start of the pandemic are provoked by the lockdown measures and the increased use of working from home. Moreover, an increasing number of people tend to choose real estate for investment
or for pension funds to bring in a stable income for the future.
According to the study by the consulting firm Deloitte, new apartments in Austria are the most expensive in Europe, with an average square meter price of EUR 4,457. This means that an apartment with an area of 70 sq. m costs an average of 10.6 times the national annual salary. However, this is still not the highest indicator in Europe, as Serbia and Austria the cost of property is 15 and 12.2 times the gross national salary accordingly.
In H1 2021, Vienna witnessed the highest number of apartment transactions – a total of 7,832 deals worth EUR 2.36B. Following its lead, there is Tyrol with EUR 925M with 2,904 apartments purchased. Meanwhile, Upper Austria ranked third, having registered 3,629 deals worth EUR 781M. Speaking of Tyrol, its property prices are some of the highest in the country, since it is located in the Alps and appeals to many potential second-home owners. In particular, wealthy buyers, as well as those who are willing to work remotely tend to invest in a home surrounded by the mountains.
In the table below, you can get an overview of the property prices in Vienna and the provinces from the official Land register, as of H1 2021.