A recent study by ImmoScout24 reveals significant regional differences in property options for Austrians with a budget of EUR 500,000. In Vienna, buyers find expensive apartments, while Upper Austria offers larger homes at lower prices. The far west of Austria exhibits higher costs, with limited space available for the same budget. Meanwhile, the first half of 2024 saw a 5.9% drop in single-family home prices nationwide, highlighting the changing dynamics of the real estate market.
For many individuals in Austria, purchasing a new house or apartment hinges on their financial capacity. Additionally, people are usually anchored to certain geographical areas, which inherently limits their property options available for acquisition.
A recent analysis by ImmoScout24 reveals the range of properties available for approximately EUR 500,000 across different federal states. “Real estate markets are inherently regional. It’s fascinating to observe how varied the offerings can be. Notably, prices per square meter fluctuate significantly,” explains Markus Dejmek, Head of ImmoScout24 Austria.
Regional Disparities in Property Options
Those with a budget of EUR 500,000 will find distinctly different opportunities depending on the province.
Vienna: An Old Apartment vs. Upper Austria: A Family House
In Vienna, prospective buyers can expect to pay around €5,100 per square meter for an older apartment. In contrast, in Upper Austria, it’s possible to purchase a six-room house with a balcony, garden, and terrace on approximately 1,000 square meters of land for about €1,360 per square meter.
Nearby Eisenstadt, a detached house boasting 250 square meters, five rooms, and a terrace is priced just below €2,000 per square meter.
High Prices in Western Austria
The real estate listings in western Austria tell a different story. In Vorarlberg, a mere 100 square meters can reach €5,959 per square meter. Additionally, in the Tyrolean Oberland, prices also exceed €5,000. Buyers here can find a bungalow with 88 square meters and two rooms for €480,000.
Ample Space in Liezen
In Liezen, Styria, a six-room detached house, along with a balcony and terrace, is available for just under half a million euros, including 1,440 square meters of land. Carinthia, known for its picturesque lakes and sunny weather, also presents properties featuring six rooms, a garden, and terrace at roughly €2,980 per square meter within the same budget.
Salzburg, geographically centered, presents a terraced house on ImmoScout24 for around €3,750 per square meter, offering three rooms along with a balcony and terrace. “The regional differences are quite pronounced. Regardless of location, expanding search parameters can lead to significantly more living and open spaces for the same budget. You may just discover a property you fall in love with, as a new home is about more than just numbers,” remarks Markus Dejmek.
Declining Prices for Single-Family Homes
In the first half of 2024, single-family home prices in Austria witnessed a decline. According to Remax, the average drop nationwide was 5.9 percent, as noted in their report based on land register purchase contracts. The typical price for a detached home was €329,829, down from €350,473 the previous year.
With inflation being offset by rising salaries and wages, housing affordability has improved recently. Compared to 2022, single-family homes are approximately €55,000 cheaper in real terms. Nonetheless, the number of homes sold remains significantly lower than prior to the interest rate changes.
The Financial Market Authority (FMA) attributes the formation of a real estate bubble in Austria to years of zero interest rate policy by the European Central Bank (ECB). The regulator has subsequently tightened lending regulations for residential properties, a move that has disappointed the real estate sector that flourished during the years leading up to this crisis.