Buying property in the federal state of Burgenland

Burgenland is the "youngest" of Austria's federal states, which is located on the border with Hungary and ranks second after Lower Austria in terms of its vineyard area (13,840 hectares) and the volume of wine produced in the country.

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Burgenland

It also houses multiple historical landmarks and natural areas that attract local and foreign tourists. Burgenland offers a fairly calm lifestyle and the quality of life here is increasing from year to year.

Austrians from other states often move here, which leads to a constantly high demand for property, as well as its value.

However, compared to other federal states of Austria, the price per square meter for the purchase of real estate in this province is fairly low - from EUR 1,200 to EUR 3,000, which provide very competitive rates for buyers and sellers.

In the following article we will look at the advantages and key features of Burgenland, the cost to buy and rent real estate, as well as why this region may be the best destination for living and investing in.

Buying property in the federal state of Burgenland

DEFINING FEATURES

The federal state of Burgenland is administratively divided into 7 districts and 2 cities with their own status, with 171 registered communities.

The region is located in eastern Austria and covers 3,965 square kilometers, making Burgenland the seventh federated state in terms of area. A large part of the territory is covered by vineyards, orchards and agricultural land, which is largely attributed to the warmer and milder climate compared to other parts of the country.

The average summer temperature is +18 ° C and in the winter it is about -1 ° C. In addition to the plains and grasslands, there are the foothills of the Alps in Oberpullendorf and Oberwart in the districts of Eisenstadt, Rust and Neusiedl am See in Burgenland. In fact, here you will find the highest point of the region, the Geschriebenstein, which is 884 m high.

It is worth mentioning the regional transport connections that connect the Burgenland with other federal states and countries are:

- Freeways: A2 (Carinthia - Styria - Burgenland - Lower Austria - Vienna), A3 (Eisenstadt - connection to the A2 towards Vienna) and A4 (Neusiedl am See - Vienna).
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- International roads: highway 58 from the Slovenian border and 61a from the Hungarian border.

- The railroad passes through the cities of Sopron and Deutschkreuz in the county of Oberpulhlendorf.

- Vienna International Airport is a 40-minute drive (60 km) from Eisenstadt and has air links with many EU countries, the Middle East, USA, Canada and South Korea.

In addition to the diversity associated with the terrain and nature, Burgenland is unique in its favourable location.

In the west it shares borders with the federal states of Lower Austria and Styria, in the east with Hungary and Slovakia, and in the south with Slovenia. Its proximity to all these countries gives Burgenland priority in its international relations, as well as allowing easy travel around Europe. The road from the capital and the largest city of Burgenland, Eisenstadt is 1 hour to Bratislava, 2.5 to Budapest and 3.5 to Ljubljana.

The region is situated within the vicinity of the capital of Austria, which is the cultural and economic center of the country of Vienna.

The road from Eisenstadt to the capital takes about 50 minutes' by car and up to 1.5 hours by public transport. Residents of Burgenland can work or study in Vienna, and live a bit further away from the capital. The average price per sq.m. in Burgenland is EUR 2,071, which is two times lower than the price in Vienna - EUR 4,499.

The economy of Burgenland is growing thanks to the food, construction, textile, clothing and electrical engineering industries.

Moreover, research institutes are developing technologies in the fields of housing, building insulation and energy conservation as well.

One of the most important sectors of the Burgenland economy is its agriculture: the federal land accounts for about 7% of the state's agricultural production and forestry. Mainly corn, wheat, rye, barley and sugar beet are grown here.

Horticulture is also well-developed, as about 20% of all Austrian peaches are harvested here, 5 - 8% of cherries, plums, apples and apricots, and up to 30% of all Austrian wine is produced.

That being said, the regional government tries to preserve the environment, so it creates and invests in projects that support the climate.

ECONOMY

Burgenland is a European pioneer in the field of wind energy, and in 2013 the region became self-sufficient in electricity, as more than 100% of energy was produced from renewable energy sources. Burgenland covers 150% of its consumption from renewable sources and can therefore contribute to supplying other regions.

In addition, the state-owned company Energie Burgenland plans to invest EUR 419M in renewable energies by 2025. From 1995 to 2013, the European Regional Development Fund of the EU had been investing in Burgenland, thanks to which a program to finance research and development was launched, as well as the creation of technology parks involved in the preparation and implementation of high-tech projects, especially for medium and small enterprises.

Furthermore, Burgenland's economic development is also linked to tourism. About 2.5 million people, both Austrians and foreigners, come primarily to Lake Neusiedler See and the vineyards, but also to visit other protected areas and parks like Naturpark Landseer Berge, Vogelschutzgebiet Lange Lacke, Naturschutzgebiet Batthyanyfeld and thermal springs health resorts.

Most of the Burgenland real estate market is dominated by private homes, followed by apartments, villas, townhouses, condominiums, bungalows and castles. Both new and historic housing stock is available for buyers.

The cost of real estate in Burgenland remains the most affordable on average in the country, but the region continues to see a steady increase in prices. According to the Austrian Chamber of Economics, in November 2021, for 5 years (from 2016 to 2021) the cost of homes increased by 10.3%, townhouses by 22.5% and condominiums by 16.4%.

So for the first half of 2021, the amount of real estate purchased in the region rose by 29.3% compared to 2020 - from 2,937 to 3,797 residential units. In addition, according to 600 RE/MAX experts, the Burgenland real estate market will continue to grow in 2022 and demand is expected to increase by 7.3%. House prices are expected to rise by 5.3%, condominium prices to 4.5%, and rentals by 2.7%.

REAL ESTATE IN BURGENLAND

On top of the positive real estate statistics, as of January 2021, Burgenland had the largest population growth in the country at 0.54%. From the official statistics of Austria the number of Burgenland residents significantly increased, from 285,685 in the 2011 census to 296,010 in 2021, where foreign nationals account for 9.6% of the total population. These figures are directly related to the affordable prices for buying property for both local and foreign nationals, as well as the economic and political stability of the region.

N.B. In our complete guide to buying property in Austria, you can learn more about the process of buying/selling, what taxes you need to pay, how to ensure the return on investment in the long run and much more.

At the same time, the rental market in Burgenland is mainly represented by apartments. As of January 2022, apartment rental costs range from EUR 390 to EUR 1,750 per month, and the average price per square meter is EUR 10.75. Prices for detached houses start from EUR 700 per month and can reach EUR 2,130. Rental prices of townhouses vary between EUR 470 and EUR 1,550 per month.
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N.B. Residents and non-residents of Austria who rent out their property must pay tax on the income. You can read more about this and the overall Austrian tax system in this article.

Condominiums, apartment buildings where the owner of a private square meter is also co-owner of the common areas (stairs, halls, land, etc.), are popular in Burgenland.
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The cost of condominiums starts from EUR 165,000. Also on the Burgenland real estate market are apartments which range in price from EUR 92,000 to EUR 1,028,000 and have a price per square meter (in 2021) ranging from EUR 1,390 to EUR 2,200. Prices of detached houses in the most expensive district still remains Neusiedl am See, where the average price per square meter is EUR 4,287, while the most affordable house prices are registered in the district of Rust - EUR 1,274.

HOW LUXURY IMMOBILIEN GMBH CAN HELP

Luxury Immobilien GmbH offers its clients a wide range of properties, from small apartments to luxury mansions, all over Austria.

Our highly qualified experts will not only educate and give you an insight into the residential or commercial property market in Burgenland or any other federal district, but they will also provide you with legal advice, conduct an in-depth analysis to determine your potential future income and, if necessary, help you find suitable financing options.

Our experts will take care of all matters related to the conclusion of the purchase/sale transaction on your behalf, from negotiations with the seller and the collection of necessary documents, to the transfer of ownership, guaranteeing maximum transparency and safety under Austrian law.

The company's services also include design services, property management and the search for reliable tenants, assistance with residence permit registration and organize relocation, alongside all related issues.

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