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what has changed in the austrian property market

News Posted On: 17 March 2010

I was speaking to a friend the other day, who unfortunately ahs just lost his wife to cancer, he said that he is going to go to Austria for about 6 months to get away from it all. When I was thinking about it later, it occurred to me that I hadn't looked at the Austrian property market, from an overseas property standpoint since the latter was in a lot better condition.

So, how is the Austrian property market? The answer: not that much different from an internal perspective, but in terms of its position and perception in the world it has changed a great deal. This is because the Austrian property is currently known to be one of the best performing markets in the world -- in fact according to the Knight Frank Q3 index it is the second best performing market.

The aforementioned index pointed out that Austrian property prices had grown some 9.7% between Q3 last year and Q3 of the year before. The only market that recorded a bigger growth was Israel with 13.7%.

The last time I looked at Austrian property prices, growth of 9.7% on the year was seen as miniscule compared to the 30% growth being recorded in many of the world's hottest emerging markets of the day. Austria is therefore proven as a solid growth market, which keeps growing even during international recessions. That will have won it many a supporter in today's risk averse world.

According to a recent report, Alpine Homes International, Savills partner specialising in top-end ski resort properties, sold out one such resort in the space of six weeks -- a record for the company. This has been put down to the new legislation enacted by the Austrian government, which gives buyers discounts of up to 30% on new-build properties provided they lease it out when not in use -- similar to the French leaseback scheme.

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Article written by Liam Bailey

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