Despite a slight slowdown in the market, owning property remains expensive. As a current Deloitte analysis shows, in a European comparison, Austria recorded the highest real estate prices of the participating countries for privately financed new apartments – closely followed by Germany and France. City apartments, on the other hand, remain relatively affordable in comparison. And rents in Austria’s cities are also comparatively inexpensive. With a price per square meter of EUR 10.50, the capital Vienna is even cheaper than Linz and Graz.
The consulting firm Deloitte examines the situation on the European real estate market every year. This year’s “Property Index” with 24 countries analyzed shows: Austrians had to pay an average of EUR 4,920 per square meter for a privately financed new apartment in 2023. In the European comparison of the countries participating in the study, the Alpine republic is the leader in terms of real estate prices, although it is closely followed by neighboring Germany with a price per square meter of EUR 4,700. France is in third place with EUR 4,538.
“Although prices for existing houses and apartments have fallen in recent months, they have remained fairly stable for new buildings. This is particularly true for sustainably built properties, especially as the climate efficiency factor and the associated low energy consumption are becoming increasingly important,” explains Gabriele Etzl, partner and real estate expert at Deloitte Legal. “Home ownership remains expensive in Austria: For many people, the dream of owning their own home is becoming much more difficult to achieve than in recent years due to high interest rates and more difficult access to loans due to the KIM regulation and the decline in residential construction activity. It is important to counteract this development in the long term.”
Israel was also taken into account in the analysis: at EUR 5,439 per square meter, the country in the Middle East is the most expensive place in the Deloitte ranking.
City apartments are comparatively affordable
In a European country comparison, Austria leads the ranking of the countries participating in the study, but a different picture emerges when comparing cities: Paris is the most expensive city at EUR 14,900 per square meter – meaning that people there have to pay more than three times the national average for a new one Put the apartment on the table. With EUR 10,900 per square meter, Munich is in second place and with EUR 8,018 per square meter London city center is in third place.
The most expensive city in Austria is Vienna – but with an average price per square meter of EUR 6,023, it is well behind the European leaders. “Although real estate prices in Vienna are more than 20% above the Austrian average, in international comparison it is still relatively cheap to buy in our capital,” says Gabriele Etzl. “It’s even cheaper in Graz. Apartment prices there are around 25% below average.”
Vienna is the most tenant-friendly city
When it comes to renting, Vienna continues to live up to its reputation as the most tenant-friendly city – despite noticeable price increases. While in London or Paris one had to expect a price per square meter of over EUR 30.00 during the study period, in Vienna it was only EUR 10.50 on average. Other Austrian cities cannot keep up with these rental prices either. In Linz you paid EUR 11.00 and in Graz EUR 11.60 per square meter.
“The reasons for the lower average rents in the capital are varied. On the one hand, they lie in the deep roots of municipal housing and the old buildings with regulated standard rents that are typical of Vienna. However, for new rentals, the rents are significantly above this average value,” concludes Gabriele Etzl.
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Study Deloitte Property Index 2024
Graphic Deloitte Property Index 2024
Photo Gabriele Etzl Credits Angelika Schiemer
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