BUYING PROPERTY IN AUSTRIA?
3rd Jan 2025
Moving abroad is never an easy task, and there are many things to consider before you make a serious move. Here's a guide to help those who would choose Austria.
Austria stands out among European countries as one of the most popular destinations for those considering a move abroad. Its capital and largest city, Vienna, has been voted the world's most liveable city for 10 years in a row - it's easy to see why. The city is rich in culture, history and innovation, and housing prices are largely affordable, especially compared to nearby cities like Munich and Zurich. Austria as a whole boasts an excellent healthcare system, high educational standards, including a number of excellent universities, and a reliable and easy transport network. The country's landscape is unsurpassed; even the cities are full of green spaces, and heading towards the Alps you'll find beautiful lakeside towns and bustling ski resorts. Austria is attractive to Europeans not only because of its high standard of living, but also because of its excellent location. It is a frequent destination for weekend or day trips.
The market is further clouded by the tightening of energy efficiency standards, which have clearly split the property market into two parts: while the price of energy efficient buildings has remained stable, the value of buildings with poor energy efficiency has fallen and the associated renovation costs have increased significantly. This may be a particularly important factor for those wishing to sell their properties, as the market value of low energy efficiency properties may decrease further in the near future.
Meanwhile, the rental market is strengthening, especially in large cities where demand for housing remains high. Urbanisation, the mobility of young workers and tightening credit conditions are driving more and more people to rent rather than buy. Rental prices are expected to continue to rise as access to housing loans becomes more difficult, putting further pressure on the rental market. In particular, demand for rental housing has increased among students, young professionals and migrants, which is likely to lead to higher prices for new rental contracts.
Vienna continues to be the most expensive city in the country, with an average price per square metre of new apartments of €6,023 in 2023. In other Austrian cities, such as Graz, the average price of new apartments was €3,758/m² and in Linz €4,736/m². The mortgage market has also undergone significant changes, with household indebtedness in Austria hovering between 40% and 60%, which is considered medium in the region. The average interest rate on mortgages in Austria is 3.9%, one of the lowest in Europe, but it increased by 201 basis points in 2023, one of the highest increases on the continent. This has also contributed to a fall in the number of property purchases, as many people have postponed or cancelled their home purchases due to the more expensive financing environment.
Source: Deloitte European Property Report
The most important question to ask is: what kind of environment do you want to live in? Many municipalities have different laws, so you need to look carefully at local requirements. In areas such as Vorarlberg and Tyrol, it is more difficult for non-EU residents to buy property, although there are solutions. In these cases, a RE/MAX Go specialist can be a great help, clarifying the details and researching the regulations. While Vienna is a centre of culture, with its many famous galleries, music venues and small cafés, other cities in Austria have much to offer, such as Salzburg, famous for the cultural icons who have visited it. In the mountains around Innsbruck and Tyrol you'll find chalets offering great access to the winter sports scene. Each place has its own advantages, but Austria is ultimately an all-encompassing country; it blends modernity with the history of the past and has stunning natural beauty.
Once you have found the property you want to make an offer on, note that prices are negotiable, but most sellers will offer you a maximum discount of 3-5 percent. A significant part of the real estate market is managed by real estate agents, with 90 percent of transactions taking place through them. To make the transaction simple, quick and transparent, it is highly recommended to use a real estate agent when buying, who charges an average fee of 3.6 percent.
The purchase offer is submitted in writing to the seller, with all the conditions, and if accepted, the transaction is final. No deposit or down payment is usually required. The full purchase price is paid into a lawyer's escrow account, and the lawyer takes care of the seller, the tax office and all other obligations.
The total transaction cost, including taxes and fees related to the sale, real estate consultancy, lawyer's and notary's fees, ranges from 11 to 12 percent. This includes a 3.5 percent real estate transfer tax, as well as lawyer and notary fees (around 1-2 percent). Closing the transaction and registering the ownership of the property usually takes 2-4 weeks.
As the date of moving in approaches, you should also note that there is no compulsory home insurance in Austria, but it is highly recommended. In addition, you may wish to have a property condition survey carried out, although this is not standard practice. Be sure to calculate for extra costs and make sure you choose your property logically - there is nothing worse than finding out afterwards that you will not be able to finance the property.
Our consultants know the local real estate development projects, environment, real estate market trends and can help you find the most ideal property. Our work includes guiding you through the process from the idea to the handover of the keys.
Austria stands out among European countries as one of the most popular destinations for those considering a move abroad. Its capital and largest city, Vienna, has been voted the world's most liveable city for 10 years in a row - it's easy to see why. The city is rich in culture, history and innovation, and housing prices are largely affordable, especially compared to nearby cities like Munich and Zurich. Austria as a whole boasts an excellent healthcare system, high educational standards, including a number of excellent universities, and a reliable and easy transport network. The country's landscape is unsurpassed; even the cities are full of green spaces, and heading towards the Alps you'll find beautiful lakeside towns and bustling ski resorts. Austria is attractive to Europeans not only because of its high standard of living, but also because of its excellent location. It is a frequent destination for weekend or day trips.
AUSTRIAN PROPERTY MARKET DATA
The Austrian real estate market has undergone a significant transformation in recent years, driven mainly by interest rate hikes by the European Central Bank and tightening lending conditions.In 2023, house prices generally declined, with residential property prices falling by 2.6% on average, while prices of second-hand homes fell by 3.7%. In contrast, prices of newly built dwellings remained stable. The number of transactions showed a significant decline, with the volume of property purchases falling by 28.2%, suggesting that buyers are becoming more cautious due to higher financing costs.The market is further clouded by the tightening of energy efficiency standards, which have clearly split the property market into two parts: while the price of energy efficient buildings has remained stable, the value of buildings with poor energy efficiency has fallen and the associated renovation costs have increased significantly. This may be a particularly important factor for those wishing to sell their properties, as the market value of low energy efficiency properties may decrease further in the near future.
Meanwhile, the rental market is strengthening, especially in large cities where demand for housing remains high. Urbanisation, the mobility of young workers and tightening credit conditions are driving more and more people to rent rather than buy. Rental prices are expected to continue to rise as access to housing loans becomes more difficult, putting further pressure on the rental market. In particular, demand for rental housing has increased among students, young professionals and migrants, which is likely to lead to higher prices for new rental contracts.
Vienna continues to be the most expensive city in the country, with an average price per square metre of new apartments of €6,023 in 2023. In other Austrian cities, such as Graz, the average price of new apartments was €3,758/m² and in Linz €4,736/m². The mortgage market has also undergone significant changes, with household indebtedness in Austria hovering between 40% and 60%, which is considered medium in the region. The average interest rate on mortgages in Austria is 3.9%, one of the lowest in Europe, but it increased by 201 basis points in 2023, one of the highest increases on the continent. This has also contributed to a fall in the number of property purchases, as many people have postponed or cancelled their home purchases due to the more expensive financing environment.
Source: Deloitte European Property Report
WHERE TO BUY PROPERTY IN AUSTRIA?
The most important question to ask is: what kind of environment do you want to live in? Many municipalities have different laws, so you need to look carefully at local requirements. In areas such as Vorarlberg and Tyrol, it is more difficult for non-EU residents to buy property, although there are solutions. In these cases, a RE/MAX Go specialist can be a great help, clarifying the details and researching the regulations. While Vienna is a centre of culture, with its many famous galleries, music venues and small cafés, other cities in Austria have much to offer, such as Salzburg, famous for the cultural icons who have visited it. In the mountains around Innsbruck and Tyrol you'll find chalets offering great access to the winter sports scene. Each place has its own advantages, but Austria is ultimately an all-encompassing country; it blends modernity with the history of the past and has stunning natural beauty.
HOW TO BUY PROPERTY IN AUSTRIA?
At the time of writing, non-EU nationals can still buy property and apply for a loan to buy property in Austria, but they need a special permit to buy. Citizens of EU countries are free to buy properaty in Austria. The first step is to hire a lawyer and a notary who will be needed during the purchase process. The average price of property in Vienna is currently €512,000, for apartments it is €341,000 and for houses it is around €1.1 million.Once you have found the property you want to make an offer on, note that prices are negotiable, but most sellers will offer you a maximum discount of 3-5 percent. A significant part of the real estate market is managed by real estate agents, with 90 percent of transactions taking place through them. To make the transaction simple, quick and transparent, it is highly recommended to use a real estate agent when buying, who charges an average fee of 3.6 percent.
The purchase offer is submitted in writing to the seller, with all the conditions, and if accepted, the transaction is final. No deposit or down payment is usually required. The full purchase price is paid into a lawyer's escrow account, and the lawyer takes care of the seller, the tax office and all other obligations.
The total transaction cost, including taxes and fees related to the sale, real estate consultancy, lawyer's and notary's fees, ranges from 11 to 12 percent. This includes a 3.5 percent real estate transfer tax, as well as lawyer and notary fees (around 1-2 percent). Closing the transaction and registering the ownership of the property usually takes 2-4 weeks.
As the date of moving in approaches, you should also note that there is no compulsory home insurance in Austria, but it is highly recommended. In addition, you may wish to have a property condition survey carried out, although this is not standard practice. Be sure to calculate for extra costs and make sure you choose your property logically - there is nothing worse than finding out afterwards that you will not be able to finance the property.
FIND THE RIGHT ESTATE AGENT
Ready to take the first steps? At this point, you should contact the RE/MAX Go team of experts. With a dedicated RE/MAX advisor to help you navigate the laws and regulations, as well as direct access to the foreign partners who provide the most professional assistance when buying property abroad.Our consultants know the local real estate development projects, environment, real estate market trends and can help you find the most ideal property. Our work includes guiding you through the process from the idea to the handover of the keys.
Login to your account
or register today