Authored by the expert who managed and guided the team behind the Austria Property Pack
Everything you need to know before buying real estate is included in our Austria Property Pack
Why is Austria emerging as a prime destination for property investment in 2025? Is it the stable economy, the high quality of life, or the strategic location in the heart of Europe? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Austria's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) The country's economy is strong, which really helps the property market
Austria's economy is a powerhouse, driving steady growth in the property market.
With a projected GDP of $647 billion by 2025, Austria's economic expansion is robust. This growth is not just a number; it's a reflection of a thriving economy that supports a vibrant property market. The GDP is expected to grow by 1.8% in 2025, followed by slight dips to 1.4% and 1.2% in the following years, showing a stable upward trend.
Unemployment rates are another piece of the puzzle. Although there was a slight uptick to 6.7% in 2024, it's expected to drop to 6.5% in 2025 and further down to 5.9% by 2027. This healthy job market boosts consumer confidence, which in turn fuels spending and investment in real estate.
The Austrian government is also playing its part with supportive policies. In 2024, they announced a EUR 1 billion construction support package aimed at renovating and building residential properties. This initiative not only stimulates the property market but also ensures there's enough housing to meet the growing demand.
These factors combined create a fertile ground for property investment. The steady economic growth, low unemployment, and government support make Austria an attractive destination for real estate buyers. The property market here is not just about numbers; it's about a thriving environment that supports long-term investment.
For those considering buying property in Austria, these insights offer a glimpse into a market that's both stable and promising. The country's strong economy, coupled with strategic government initiatives, ensures that the property market remains robust and appealing.
Sources: World Economics, BMF.gv.at, Economy-Finance EC
2) With a strong tourism industry, Austria offers great short-term rental opportunities
Austria's booming tourism industry is a goldmine for short-term rental opportunities.
In 2023, the country saw a whopping 139.73 million overnight stays, a clear sign of the rising demand for places to stay, especially short-term rentals. This trend is not just about numbers; it's about tourists wanting to experience Austria like a local, which is why platforms like Airbnb are thriving.
Take Vienna and Salzburg, for instance. These cities boast occupancy rates of 77% and 78% for short-term rentals, showing a strong preference for these over traditional hotels. Tourists are drawn to the unique and local experiences these rentals offer, making them a hot choice.
Looking ahead, the economic impact of tourism is set to grow. The Travel & Tourism market in Austria is expected to expand by 3.72% from 2024 to 2029. This growth highlights how crucial short-term rentals are in bolstering Austria's economy, which heavily relies on tourism.
For those considering investing in property here, it's worth noting that the demand for short-term rentals is not just a passing trend. It's a reflection of a broader shift in how people want to travel and experience new places.
With Austria's tourism industry showing no signs of slowing down, short-term rentals are poised to remain a lucrative opportunity for property investors. The combination of high tourist numbers and a growing market makes it an attractive prospect.
Sources: Travel and Tour World, Airbtics Vienna, Airbtics Salzburg, Statista
We have made this infographic to give you a quick and clear snapshot of the property market in Austria. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) In this country, your property and investments are safeguarded by a strong legal framework
Austria is a great place to consider if you're thinking about buying property.
With a ranking of 13th globally in the International Property Rights Index, Austria shows off its strong legal framework. This means you can expect a solid legal and political environment when it comes to property rights. In Western Europe, Austria is even more impressive, ranking 9th, which highlights its commitment to protecting property investments.
Another feather in Austria's cap is its 4th place globally in the Property Rights Index by TheGlobalEconomy.com. This high score of 97 reflects the country's robust protection of property rights. While specific data on property disputes isn't readily available, the low levels of such disputes in Austrian courts suggest a stable and effective legal system.
Austria's commitment to EU property rights standards ensures that property rights are consistently protected. This adherence means that property buyers can feel secure in their investments. The country's legal system is further bolstered by low corruption levels in the judiciary, with a Control of Corruption score of 7.517, making it a trustworthy environment for property transactions.
For those looking to invest, Austria's legal framework is a significant advantage. The country's strong legal protections and low corruption levels make it an attractive option for property buyers. With such a reliable system, you can focus on finding the perfect property without worrying about legal hurdles.
Sources: International Property Rights Index, TheGlobalEconomy.com, Recom Relocation Blog
In this video Buying Real Estate in Austria | 3 Tips & Process, we see detailed explanations of legal considerations that highlight Austria's strong property rights protections.
4) Austria’s craftsmanship and design tradition means you’ll find high-quality homes
Austria is known for its exceptional craftsmanship and design in residential properties.
When you think of Austrian architecture, think of the Vienna University of Technology (TU Wien), a top-notch school that shapes the future of design with its well-rounded curriculum. This institution is a cornerstone in keeping the architectural standards sky-high.
Austria's architects and designers are no strangers to accolades. Take the Seestadt Aspern Housing project in Vienna, crafted by Berger + Parkkinen and Querkraft Architekten. It's a prime example of Austria's flair for innovative and sustainable design, showing the country's dedication to quality living spaces.
Globally, Austrian furniture and design products are in high demand, thanks to their superior craftsmanship and aesthetic appeal. This international interest boosts the reputation of Austrian homes, making them even more desirable.
One of Austria's secret weapons in construction is its use of larch wood, known for its durability and quality. This material not only ensures the longevity of homes but also keeps maintenance costs low, a win-win for homeowners.
So, if you're considering a property in Austria, you're looking at a place where tradition meets innovation, offering homes that are both beautiful and built to last.
Sources: Discover the Best Architecture Schools in Austria in 2024, Façades made of Austrian larch wood, Seestadt Aspern Housing
5) Austria’s mix of city and countryside gives you unique investment options in both areas
Austria's diverse landscape offers unique investment opportunities in both urban and rural areas.
In the bustling city of Vienna, despite a slight dip in property prices in 2023, it remains a top choice for investors due to its stability and resilience. Meanwhile, Salzburg is catching eyes with its promising rental yields, making it a hotspot for those interested in rental properties. The Austrian government sweetens the deal with incentives for sustainable developments, encouraging eco-friendly construction projects in urban areas.
Turning to the countryside, regions like Tyrol and Carinthia are equally enticing. Known for their natural beauty and outdoor activities, these areas are driving demand for vacation homes. The growth in tourism here has led to higher rental yields, making them lucrative for real estate investments. Government incentives for sustainable developments in rural areas are also a draw for investors interested in eco-friendly projects.
Infrastructure projects are improving connectivity between urban and rural areas, further boosting the attractiveness of rural investments. This means easier access to the serene landscapes of Tyrol and Carinthia, enhancing their appeal for both tourists and investors.
Austria's blend of urban vibrancy and rural charm creates a diverse landscape that offers a wide range of investment opportunities. Whether you're drawn to the cultural buzz of Vienna or the tranquil beauty of the countryside, there's something for every investor.
Sources: Global Property Guide, Engel & Völkers, UNECE Market Report 2024
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6) Austria’s excellent healthcare makes it a great choice if you’re planning to retire or settle down
Austria's healthcare system is a big reason why retirees and long-term residents choose to live there.
With universal health coverage, Austria ensures almost everyone has access to healthcare, making it a top choice for those planning to settle down. The system is designed to cover nearly the entire population, with only a tiny fraction, just 0.1%, not fully served. This means you can expect reliable healthcare services without much hassle.
Austria's healthcare quality is reflected in its high life expectancy of around 82 years, one of the best in the world. This isn't just a number; it shows how effective the healthcare system is in keeping people healthy and living longer. The country also has low rates of treatable mortality, which means people get the care they need to prevent serious health issues.
In 2023, Austria was ranked 22nd in the Legatum Prosperity Index for healthcare, scoring 80.2 out of 100. This ranking highlights the country's commitment to providing excellent healthcare services. It's not just about the numbers; it's about the peace of mind knowing that quality care is available when you need it.
For retirees, this means settling in a place where healthcare is not just accessible but also of high quality. The system's efficiency and comprehensive services make it a reliable choice for those looking to enjoy their golden years without worrying about medical issues.
Austria's healthcare system is a key factor in its appeal to long-term residents, offering a sense of security and well-being. It's a place where you can enjoy life, knowing that your health is in good hands.
Sources: World Index of Healthcare Innovation, Expatica, European Commission
We found a recent and reliable video by The health care system in Austria - Overview that comprehensively explains Austria's healthcare infrastructure and benefits, illustrating why it attracts retirees.
7) Austria’s efficient bureaucracy makes buying and managing property easier for you
Austria's efficient bureaucracy makes buying and managing property a breeze.
One standout feature is the streamlined property registration process. Austria consistently ranks high in the World Bank's Ease of Doing Business report, highlighting its user-friendly system. This means you can navigate the process without a hitch, making it less daunting for potential buyers.
Even though the average time for real estate transactions in Austria increased from 167 days in 2019 to 273 days in early 2022, it's still quicker than many other European markets. This efficiency helps reduce the stress and uncertainty that often come with property deals, allowing you to focus on what really matters.
Transparency is another key factor. The Austrian land register, managed by district courts, is open for public inspection, ensuring that all property-related information is accessible. This openness builds trust and confidence, as you can easily verify property details and legal standings.
Austria's notary system is also a big plus. While specific stats aren't available, it's known for secure and quick property transfers. This adds an extra layer of security and reliability, making the process more appealing to both local and foreign investors.
Sources: Trading Economics, Drooms, Baker McKenzie
8) In this country, you’ll find reliable mortgage options thanks to a strong banking system
Austria's banking system is known for its remarkable stability and resilience, making it a great place for property investors.
In 2023, Austrian banks hit a record profit of EUR 14 billion, showing they have a strong financial base. This is crucial for offering secure mortgage products, giving investors peace of mind. The banks' common equity tier 1 capital ratio stands at a solid 17.5%, further proving their financial health.
Even with a slight rise in non-performing loan ratios from 2.6% in 2023 to 2.7% in 2024, the banking sector remains robust. A high liquidity coverage ratio of 174% supports this resilience, suggesting that the risk of mortgage defaults is minimal. This makes real estate financing in Austria a safer bet for investors.
Competitive mortgage interest rates, especially fixed-rate options, add to the appeal of the Austrian mortgage market. The share of variable rate loans in new residential real estate lending has dropped to around 40% at the start of 2024. This shift indicates that fixed-rate options are both available and competitive, offering stability for investors.
For those looking to invest in property, Austria's banking system provides reliable mortgage options thanks to its strong financial foundation and low risk of defaults. The country's banks are well-equipped to support investors with secure and attractive mortgage products.
Sources: OeNB Financial Stability Report 47, OeNB Financial Stability Report 48
We made this infographic to show you how property prices in Austria compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Austria’s central location in Europe makes travel and connectivity easy for you
Austria is perfectly positioned in Europe, making it a travel hotspot.
Thanks to its central location, Austria is a natural hub for travelers moving across Europe. Whether you're a tourist or on a business trip, getting from Austria to other European countries is a breeze. This is largely due to Austria's high-speed rail connections, which are part of the ambitious Target Network 2025+ master plan. Projects like the 4-track upgrade between Vienna and Linz and the new Klederinger loop are game-changers, cutting travel times significantly and making cross-border travel smoother.
Vienna International Airport is another key player in Austria's connectivity. In 2024, it saw a record number of passengers, even surpassing pre-crisis levels. This surge in passenger traffic underscores the airport's role as a major gateway for international travel. The rise of low-cost airlines operating in and out of Austria has also broadened travel options, making it easier and more affordable for everyone.
Austria's membership in the Schengen Area is a big plus for travelers. It allows for borderless travel within the region, simplifying journeys for both tourists and business folks. Being part of European Union transport and infrastructure projects means Austria's transportation systems are well-integrated into a larger network, boosting connectivity even more.
For those considering buying property in Austria, these travel perks are a huge advantage. Imagine being able to hop on a train or catch a flight with ease, thanks to Austria's strategic location and top-notch infrastructure. It's not just about convenience; it's about being connected to the rest of Europe effortlessly.
Whether you're looking to explore the continent or need to travel for work, Austria's position and infrastructure make it an ideal base. With its seamless travel options, living in Austria means you're never far from your next European adventure.
Sources: Global Railway Review, Aviation24
10) With Austria’s efficient public transport, properties become more desirable
Austria's public transportation system is incredibly efficient, making properties in well-connected areas highly desirable.
In 2023, the system saw 1.3 billion passengers annually, showing just how much people depend on it. This heavy reliance boosts the appeal of homes near transport hubs, as they offer easy access to the network.
Properties close to public transport stations tend to increase in value more than those further away. A 2023 report highlighted that homes within a 10-minute walk from a station appreciated significantly, reflecting a strong market trend.
Surveys back this up, with a 2024 study revealing that 70% of people prefer living near public transport. This preference underscores the importance of accessibility in property decisions.
In Vienna, where the public transport network is especially efficient, car ownership is notably lower than in other areas. This indicates that residents prioritize the convenience of public transport over owning a car.
Such trends make properties in these areas more attractive, as they offer a lifestyle that reduces the need for personal vehicles, aligning with modern urban living preferences.
Sources: ÖBB, Österreichische Immobilienverband, WIFO, Statistik Austria
11) Austria’s high quality of life draws many international residents
Austria's high quality of life is a magnet for people from around the globe.
Austria consistently shines in global rankings, securing 2nd place overall for quality of life. This includes top marks in travel, transit, environment, healthcare, and safety. These elements make Austria a dream destination for many.
Vienna, the vibrant capital, is a hotspot for expats and international students. While exact growth numbers aren't specified, Vienna's allure is well-known. The Expat Insider 2024 survey ranks Austria 10th in the Working Abroad Index and 2nd for quality of life, underscoring its appeal.
Austria's healthcare is top-notch, with a life expectancy of 82 years, surpassing the OECD average. The 2023 Country Health Profile praises its mental health services, adding to its healthcare accolades.
Safety is another feather in Austria's cap, ranking 10th in the Safety & Security subcategory of the Quality of Life Index. This reassures both residents and visitors, making it a safe haven.
Sources: Internations, OECD
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12) You’ll find more sustainable properties thanks to the country’s focus on renewable energy
Austria is a leader in renewable energy, with 87% of its power coming from renewable sources in 2023.
This means that if you're considering buying property in Austria, you're likely investing in a home that's powered by clean energy. The Austrian government has been proactive, offering incentives for green building practices that encourage the use of renewable energy and energy-saving measures. This has led to a noticeable improvement in the energy quality of buildings, with more solar energy use and less reliance on fossil fuels.
New housing developments are increasingly integrating renewable energy sources like solar and wind power. This isn't just a trend; it's a shift towards sustainability from the ground up. The investment in solar and wind energy projects has been significant, with the photovoltaic share of electricity generation more than doubling since 2022.
For potential property buyers, this means homes are not only more sustainable but also align with Austria's ambitious national targets for carbon neutrality by 2040. The government's push for renewable energy has made it easier for homeowners to reduce their carbon footprint, making properties more attractive to environmentally conscious buyers.
In Austria, the commitment to renewable energy isn't just about numbers; it's about creating a sustainable future. The integration of clean energy into residential areas is a testament to this commitment, ensuring that new properties are built with sustainability in mind from the start.
So, when you buy a property in Austria, you're not just getting a home; you're investing in a future that's powered by clean, renewable energy. This makes Austria an appealing choice for those looking to make a sustainable investment in real estate.
Sources: Global Factor, Energy EC, OEBFA
13) With ongoing infrastructure development, properties in the country are becoming more accessible
Austria is making it easier to access properties by investing heavily in infrastructure.
The government has rolled out a EUR 1 billion construction support package over three years to renovate and build more homes. This means more properties are not just available but also easier to reach, making them more attractive to potential buyers.
Austria is also expanding its railway network with a EUR 26 billion investment in 67 rail projects by 2040. This includes new lines and expansions in key areas like Vienna and Bregenz, making travel across the country smoother. Properties near these rail lines are becoming more accessible, which could boost their value.
On top of that, Austria is focusing on sustainable urban development. By investing in renewable energy and public transportation, the government is making areas more livable and environmentally friendly. This approach not only enhances property accessibility but also makes these areas more appealing to live in.
For those considering buying property, these infrastructure improvements mean better connectivity and more options. The focus on sustainability and public transport is a big plus, ensuring that properties are not just accessible but also in desirable locations.
Austria's commitment to infrastructure is reshaping the property market, making it a great time to consider investing. With these developments, properties are becoming more accessible and attractive, offering potential for increased value.
Sources: GlobeNewswire, Economy Finance, Fitch Solutions
14) Austria’s commitment to environmental conservation makes eco-friendly properties more desirable
Austria is seeing a surge in demand for eco-friendly properties thanks to its strong focus on environmental conservation.
Imagine living in a home with a green roof, a trend that's catching on fast in Austria. Every year, new green roofs cover an area equal to 140 soccer fields, showing how much people love sustainable building practices. This isn't just about aesthetics; it's about a lifestyle choice that aligns with Austria's eco-conscious values.
The Austrian government is a big player in this green movement. They've rolled out incentives like a bonus for thermal refurbishment, making it easier for homeowners to adopt sustainable practices. Plus, with Austria aiming for climate neutrality by 2040, the government is backing this up with Green Securities, which make green investments more transparent and trustworthy.
When you see a building with a klima:aktiv label, you're looking at a property that's not just energy-efficient but also highly desirable. These green-certified buildings are popping up more and more, and they’re a testament to Austria's dedication to sustainability. For potential buyers, this means a home that's both eco-friendly and appealing.
Austria's commitment to green living is evident in its policies and the market's response. The country is not just talking about sustainability; it's making it happen. This focus on eco-friendly properties is making them a hot commodity, especially for those who value energy efficiency and a smaller carbon footprint.
So, if you're considering buying property in Austria, keep an eye out for these eco-friendly options. They're not just good for the planet; they're becoming increasingly popular among buyers who want to invest in a sustainable future.
Sources: Austrian Green Market Report, Sustainable Buildings in Austria, Republic of Austria - Green Investor Report 2023
One of our partners sent us this video Inside Austria's Rammed Earth Factory, showcasing innovative sustainable building practices, proving Austria's commitment to eco-friendly properties.
15) With prestigious universities around, it’s easy to find renters for student housing
Prestigious universities drive up demand for student housing because they attract many students who need places to live.
Take the University of Vienna, for example, where 29% of students are from abroad. This influx of international students highlights the need for more housing options. Students often prefer living off-campus, especially if it's close to their university. Properties within a half-mile of campus are snapped up quickly, showing a strong desire for convenience.
Universities don't just bring students; they also impact local housing markets. A large student population can push up rental prices and property values in university towns. This is a global trend, with student housing rents rising significantly over the past decade.
In many university towns, the demand for housing is not just about numbers. Students have specific preferences, and they often choose off-campus housing for more freedom and better amenities. This preference for off-campus living is a key factor in the housing market dynamics around universities.
Investors and property developers are keenly aware of these trends. They know that properties near universities are in high demand, and they often focus on developing or acquiring housing in these areas. This focus on proximity to campus is a strategic move to meet the needs of students who prioritize location.
Overall, the presence of prestigious universities creates a unique housing market dynamic. The demand for student housing is not just about quantity but also about meeting the specific needs and preferences of students. This makes university towns a hot spot for real estate investment.
Sources: Brookfield Oaktree, Newbie Real Estate Investing, University of Vienna International Report
16) You can count on Austria’s political stability to secure your property’s long-term value
Austria's political scene is rock solid, which means property values tend to hold steady over time.
In 2023, Austria scored a 71.56% in Political Stability and Absence of Violence/Terrorism, showing just how stable things are here. This is backed up by the political stability index, which rose to 0.73 points in 2023 from 0.65 in 2022, a clear sign of improvement.
Big credit ratings from agencies like Standard & Poor's and Moody's underline Austria's financial health. These ratings reflect strong economic performance, crucial for keeping property values up. Plus, being part of the European Union adds another layer of economic stability, which is great news for property investors.
Even during the 2024 recession, Austria managed to keep inflation low, which helps property owners maintain their purchasing power. This economic steadiness, along with a history of steady property price growth, keeps investors interested and demand high.
Austria's low crime rates make it a safe place to live, which naturally makes properties more appealing. This safety factor is a big draw for both residents and investors, adding to the desirability of owning property here.
Sources: Trading Economics, Company Formation Austria, European Commission
17) With top-notch education, families are drawn to neighborhoods in this country
Austria's top-notch education system makes it a magnet for families seeking great neighborhoods.
Families often choose where to live based on the quality of education, and Austria's schools and universities, like the University of Vienna, are highly regarded worldwide. This reputation is bolstered by significant government investments, such as the EUR 235 million earmarked for digital learning from 2021 to 2024, ensuring that educational facilities remain cutting-edge.
In Austria, neighborhoods with top-rated schools see a noticeable increase in property values. Families are willing to pay a premium for homes in these areas, knowing that good schools often mean a better future for their children. This trend is not just about numbers; it's about the peace of mind that comes with knowing your kids are getting a quality education.
Demographic data shows that areas with excellent schools tend to have a higher percentage of families with children. This naturally boosts the demand for family-friendly housing, as parents want to be close to the best educational opportunities for their kids. It's a cycle that keeps these neighborhoods vibrant and in demand.
For those considering a move to Austria, understanding the link between education and real estate is crucial. The country's commitment to education doesn't just benefit students; it also enhances the appeal of its neighborhoods, making them more desirable for families.
So, if you're looking to buy property in Austria, keep an eye on areas with strong educational institutions. These neighborhoods not only promise a great education for your children but also offer a solid investment in your family's future.
Sources: Study.eu, European Commission, OECD Better Life Index
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.