Owning your own home is increasingly becoming a nagging cost factor. Higher energy costs are driving many households to despair. Many want to move. But where is living in Vienna still affordable?
Due to the enormous wave of inflation, more and more people are no longer able to pay their fixed costs. A large part of this is caused by housing and energy costs. That’s why, in a current Austrian survey by durchblicker.at, 15% of tenants said they were already looking for a cheaper apartment – that’s one in seven tenants. In addition, a third of the households surveyed are trying to reduce heating and save electricity.
Inflation is a big problem
“Many have suffered significant income losses during the Covid crisis. Now the sudden rise in inflation – that is a shock to households. Their response is therefore strong,” says Reinhold Baudisch, director of Durchblicker, which specializes in rate comparisons, and advises people to look closely at their contracts.
Prices have even fallen recently in some districts
The real estate portal ImmoScout24 compared the prices for the “Krone” of the first quarter of 2022 with the first quarter of 2021: the cheapest are rents in the 15th/16th/17th/5th district. It is most expensive on the 1st/20th/2nd/22nd Ward. Rents rose the most in 20/11/2. and 23rd arrondissement. Prices are even falling in Ottakring, Landstraße, Innere Stadt, Alsergrund and Wieden.
In some neighborhoods cheaper rents than a year ago
“We are currently seeing a trend reversal in rents. Previously cheaper neighborhoods like Brigittenau, Simmering, Liesing or Leopoldstadt with the popular Karmelitermarkt are rising in rents, while the 3rd, 9th, 4th and 1st districts have apparently reached a rent peak and currently offer slightly cheaper rents than a year ago,” says Markus Dejmek, head of Austria at ImmoScout24.
Where real estate prices have risen the most
Anyone who plays with the idea of buying a home needs not only the necessary variety, but also good contacts or luck. The cheapest buys in the 11./12./16. and 15th arrondissement, by far the most expensive in the 1st arrondissement. You have to put down about half of that for the 4th and 19th arrondissements. But also in the trendy districts Josefstadt and Mariahilf, around 8,000 euros per square meter is customary. Real estate prices rose the most in the 4th/1st/20th/6th district
Apparently it doesn’t get any more expensive
Housing costs have risen enormously in the past two years. But what happens after that? According to the real estate price index of the Chamber of Commerce, real estate prices should rise. But especially in Vienna there are some quirks. Specialist group chairman Michael Piseck: “We have developed to the higher European level in terms of real estate prices. But not with rents, where increases below inflation are to be expected.”
The reason why the real estate and rental markets develop so differently is due to the ownership situation in Vienna. Traditionally, people tend to rent in the federal capital. Only 18 percent of Viennese own their home. Second-hand homes remain scarce, but they are in high demand and prices are rising as a result. There is also no question of excessive supply in new construction. This, together with high base costs and rapidly increasing construction costs, leads to further price increases. As a result, many apartments end up on the rental market. According to experts, supply also exceeds demand, which will lead to a less pronounced increase in rents.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
