Residential Real Estate - Austria

The Residential Real Estate market market in Austria is expected to reach a value of US$2.47tn by 2024.
This projection indicates a potential annual growth rate (CAGR 2024-2029) of 2.25%, resulting in a market volume of US$2.77tn by 2029.
When compared globally, China is anticipated to generate the highest value in the Real Estate sector, amounting to US$112.9tn by 2024.
The demand for luxury apartments in Austria is on the rise, particularly in Vienna, due to the country's stable economy and high standard of living.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Austria is experiencing significant growth and development.

Customer preferences: Austrian customers are increasingly looking for properties that offer modern amenities and are energy-efficient. They prioritize properties that are located in well-connected areas with easy access to transportation and amenities such as schools, shopping centers, and recreational facilities. Additionally, there is a growing demand for properties that offer a high level of security and privacy.

Trends in the market: One of the key trends in the Austrian Residential Real Estate market is the increasing popularity of urban living. Many people are choosing to live in cities due to the convenience and accessibility they offer. As a result, there is a high demand for apartments and condominiums in city centers. This trend is driven by factors such as the desire for a vibrant social and cultural scene, proximity to job opportunities, and the availability of amenities. Another trend in the market is the rise in demand for sustainable and eco-friendly properties. Austrian customers are becoming more conscious of their environmental footprint and are seeking properties that are built using sustainable materials and energy-efficient technologies. This trend is driven by factors such as government incentives for energy-efficient buildings and the desire to reduce utility costs in the long run.

Local special circumstances: Austria has a stable and well-regulated real estate market, which provides a sense of security to both buyers and sellers. The country has strict building regulations and standards, ensuring that properties meet high-quality standards. Additionally, Austria has a strong rental market, with many people choosing to rent rather than buy properties. This is driven by factors such as the high cost of homeownership and the flexibility that renting offers.

Underlying macroeconomic factors: The Residential Real Estate market in Austria is influenced by several macroeconomic factors. The country has a strong economy and low unemployment rate, which has contributed to the growth of the real estate market. Additionally, low interest rates have made it more affordable for individuals to borrow money for purchasing properties. Furthermore, Austria attracts a significant number of foreign investors, particularly from neighboring countries, who see the country as a safe and attractive investment destination. In conclusion, the Residential Real Estate market in Austria is experiencing growth and development, driven by customer preferences for modern and energy-efficient properties, the trend of urban living, and the demand for sustainable housing. The local special circumstances, such as a well-regulated market and a strong rental market, contribute to the stability of the market. Moreover, underlying macroeconomic factors, including a strong economy and low interest rates, further support the growth of the market.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate - Austria

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Real Estate Type

Community Size Split

Living Space

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Contact

Get in touch with us. We are happy to help.

Residential Real Estate - Austria

In-Scope

Out-Of-Scope

Related markets:

Residential Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts