For more and more people in the country, the dream of owning a house is unlikely to come true. According to consultancy Deloitte, in the first quarter of 2022 alone, square meter prices for new apartments have risen by 13 percent – after an already steep 11 percent increase in the previous year. But renting is still relatively cheap in this country.
According to the “Property Index 2022” published on Wednesday, one square meter of new apartment already costs 4782 euros. The advisor uses the index to analyze the European real estate market on an annual basis. With the increase in purchase prices, the Alpine Republic is now one of the most expensive places – next to Germany and France, only behind Great Britain. The square meter price there is 4905 euros.
Vienna far above the Austrian average
With an average price for new-build apartments of 5788 euros per square meter in the reporting period, Wen was 21 percent above the Austrian average. However, in the European city ranking, the domestic capital offers almost bargain prices and was far behind cities such as Paris with 13,462 euros or Munich with 10,500 euros.
The rents remain relatively affordable
“While it may sound paradoxical to some, our capital is relatively affordable,” said Gabriele Etzl, Partner and Head of Real Estate at Deloitte Legal. “By comparison, in Lisbon you pay more than three times as much as the average real estate price in Portugal. The gap between city and countryside is a lot bigger here.”
In an international comparison, renting accommodation in Vienna and Austria is also cheap. With an average of 8.66 euros per square meter, the rent in Vienna was even cheaper than in Graz (10.40 euros) or Linz (10.22 euros). That puts you in the lower third of Europe. Paris (29.10) is ahead of Oslo (26.56) and Inner London (25.12).
Escape to “concrete gold”
Nowhere are more construction projects planned than in Austria. In 2021, a total of 10.6 projects per 1000 inhabitants were started. Poland with 7.3 and Slovenia with 6.1 construction projects per 1000 inhabitants follow at a good distance. Italy ranks last in the Deloitte study with 1.0 construction projects initiated per 1000 inhabitants.
Conclusion from Deloitte’s point of view: The Covid-19 crisis and historically low interest rates caused a real flight to “gold in concrete” last year. “Due to this development, living in this country became more and more expensive. While rents in the capital are still affordable for the general public, owning a home is now a luxury,” says Etzl.
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.
