Property Prices In Austria Continue To Rise
News Posted On: 28 June 2012
Property prices throughout Austria are increasing quite rapidly, and excluding Vienna, rose by 11% to the year ending first quarter of 2012. Property prices rose by 9.6% in the nation's capital of Vienna during the same period, and during the first quarter of 2012 increased by 4.3%.
Property prices in Austria has risen somewhat erratically since 2000, but prices rises in Vienna have been more consistent, increasing steadily since the third quarter of 2004. In the heart of Vienna prices have more than doubled within the last 10 years, and from the first quarter of 2005 to the first quarter of 2012, property prices rose by 67% in the city, compared to a 33% increase for the rest of the country.
Part of the reason for the increase is probably due to the lack of building space within the city, but it's also due to Vienna's increasing attractiveness to foreigners, especially the Russians.
It is easy to see the charm of the city, as it is relatively small and has a reputation for being well-heeled with a few bad neighbourhoods. It's expected that property prices within the city will continue to rise for the rest of the year in spite of the ongoing Eurozone debt crisis.
Another reason for Vienna’s stable housing market is due to the fact that around 70% of the residential property is owned by institutional investors, and companies and banks.
Prices have also increased due to the lack of new supply, and there is considerable demand for larger units in excess of 100 m², with prices of such properties rising more quickly than smaller units. With so much of the property owned by institutional investors it's hardly surprising that 77.2% of the population in the city rent their home rather than own it and this is one of the highest percentages in the world.
View property for sale in Austria
Written by Les Calvert
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