Deloitte research: Austrian real estate prices among the best

2024-08-11 22:00:03

Vienna(OTS) –

Although the market has slowed slightly, owning property remains expensive. As a current Deloitte analysis shows, in a European comparison, privately financed new apartment real estate prices in Austria are the highest among the participating countries, followed by Germany and France. On the other hand, city apartments remain relatively affordable in comparison. Rent in Austrian cities is also relatively cheap. The price per square meter in the capital Vienna is 10.50 euros, which is even cheaper than Linz and Graz.

Consulting firm Deloitte examines the state of Europe’s real estate markets every year. This year’s “Real Estate Index” analysis of 24 countries shows that in 2023, Austrians will need to pay an average of 4,920 euros per square meter for a new privately financed apartment. Among the European countries participating in the study, the Alpine Republic leads the way in real estate prices, although it is closely followed by neighboring Germany with a price of 4,700 euros per square meter. France ranks third with 4,538 euros.

“While prices for existing houses and apartments have fallen in recent months, prices for new builds have remained fairly stable. This is particularly true for sustainably built properties, especially as climate efficiency factors and associated low energy consumption become is increasingly important,” explains Gabriele Etzl, Deloitte law partner and real estate expert. “Home ownership remains expensive in Austria: For many people, the dream of owning their own home has become more difficult to achieve than in recent years due to the KIM regulation which has led to high interest rates and more difficulty in obtaining loans, as well as a decline in home loans. Residential Construction activity. It is important to resist this development in the long term.

Israel was also taken into account in the analysis: with house prices of 5,439 euros per square meter, the Middle Eastern country is the most expensive country in Deloitte’s ranking.

City apartments are relatively cheap
In a comparison of European countries, Austria ranks first among the countries participating in the study, but a different picture emerges when comparing cities: Paris is the most expensive city with 14,900 euros per square meter – which means that people there have to pay more than Fee of 3 euros. Munich ranked second with 10,900 euros per square meter, and central London ranked third with 8,018 euros per square meter.

The most expensive city in Austria is Vienna, but with an average price per square meter of €6,023, it lags far behind leading European cities. “Although real estate prices in Vienna are more than 20% higher than the Austrian average, buying property in our capital is still relatively cheap compared to international comparisons,” says Gabriele Etzl. “Graz is even cheaper. Apartment prices there are about 25% lower than the average.

Vienna is the most renter-friendly city
When it comes to renting, Vienna continues to maintain its reputation as the most tenant-friendly city – albeit with significantly higher prices. During the study period, prices per square meter in London or Paris were expected to exceed €30.00, while in Vienna the average price was only €10.50. Other Austrian cities cannot keep up with these rental prices. In Linz you pay 11.00 euros per square meter, in Graz you pay 11.60 euros per square meter.

“The reasons for the lower average rents in the capital are manifold. On the one hand, they are deeply rooted in municipal housing and older buildings with regulated standard rents typical of Vienna. However, for new ones, rents are much higher than this average value.

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Research the Deloitte Real Estate Index 2024

Graphical Deloitte Real Estate Index 2024

Photo Gabriele Etzl Photo credit Angelika Schiemer

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