Housing: Graz is growing and remains affordable

2023-09-19 22:00:00

Linz is more expensive, but the offering is of higher quality. In the Upper Austrian capital, 50 percent are subsidized apartments.

If you compare the housing markets of the country’s two largest state capitals, Linz and Graz, you will see that they are very different.

Graz is building a lot of new housing, and growth is moderate in Linz

While Graz is the fastest-growing state capital in Austria, where up to 3,500 apartments are being built per year, growth in Linz is moderate: 1,310 new apartments were completed in 2021, and only 850 in 2023. “We expect another one in 2024 Decline in new residential construction in Linz,” says Christoph Oßberger from the CBRE region of Upper Austria-Salzburg. CBRE’s research team regularly analyzes the real estate markets and determines current figures and data. The current housing market report shows that Linz traditionally has a high proportion of subsidized apartments. In 2023, however, this proportion will decline and will only be around 50 percent.

What is also noticeable: So far, Linz has grown primarily with new building projects in the southern outskirts. “Up and Coming in the south remains attractive, but new construction activity is now increasingly shifting to the densely built-up area in the center of Linz. Around 328 apartments are currently being built there in High Five on Bulgariplatz,” emphasizes Oßberger.

Real estate prices in Linz are significantly higher than in Graz

At 5,400 euros per square meter, the purchase prices are significantly higher than those in Graz, where the average value is 4,200 euros. “These large differences can be explained by the fact that the offer in Linz is significantly lower than that in Graz. On the other hand, the range of condominiums offered for retail sale in Linz is also of higher quality,” explains Oßberger, who expects the purchase prices to rise even further.

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Living in Linz is comparatively spacious: the average new apartment in Linz will be around 72 square meters in 2023, which is 13 square meters more than in Graz. Oßberger: “The above-average size is explained, among other things, by the high proportion of subsidized housing.”

Rents in Linz – with the exception of the city center and the residential area – are homogeneous and range from 8.50 to 11.00 euros per square meter of living space.

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