Should I buy property in Austria for a rental income?
“After years of price increases, residential property in Austria became cheaper year-on-year in 2023 for the
first time since the start of the survey in 2010. With a decline of 2.6%, prices for houses and apartments in
Austria have fallen more sharply than the EU average of −0.3%, so from the buying point of view, it is better value.
Sharp rent increases in the private rental sector
The average apartment rent including running costs in 2023 was €625.3 per apartment or €9.4 per square metre, an increase of 7.6% on the previous year. But obviously certain areas are more expensive, such as cities and popular villages in demand.where the cost can average upto €12
However, the increases vary depending on the rental segment. For example, rents including running costs per square metre in the private rental sector rose by 9% from 2022 to 2023, which is considerably more than the increase in rents for co-operative tenancy (+5.9%) and communal tenancy (+4.8%).
Especially in the private rental sector, there are some rental agreements with value protection clauses, which led to increased adjustments in 2023, as the inflation level in 2023 was consistently above 5%. In addition to the rental segment, the rental period and region also influence the actual amount of the monthly rent.
So on balance it is still a good investment for a steady income.