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Residential Real Estate Leases - Austria

Austria

The Residential Real Estate Leases market market in Austria is expected to witness significant growth in the coming years.
According to projections, the revenue of this market is estimated to reach US$20.09bn by the year 2024.
In terms of market dominance, Apartment Leases hold the largest share, with a projected market volume of US$15.59bn in 2024.
This indicates the strong demand for residential properties for lease in Austria.
Looking ahead, the market is anticipated to maintain a steady growth rate, with an annual growth rate (CAGR 2024-2029) of 2.70%.
This growth trajectory is expected to result in a market volume of US$22.95bn by the year 2029.
Austria's residential real estate lease market is experiencing a surge in demand due to a growing population and increasing urbanization.

Key regions: Japan, China, Australia, Germany, United States

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Analyst Opinion

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

Customer preferences: In recent years, there has been a shift in customer preferences towards renting rather than buying residential properties in Austria. This can be attributed to several factors, such as the flexibility and mobility that renting offers, especially for young professionals and individuals who frequently relocate for work or personal reasons. Additionally, renting allows individuals to avoid the financial burden of purchasing a property, including the upfront costs of a down payment and ongoing maintenance expenses. Furthermore, the availability of a wide range of rental properties in various locations and sizes allows customers to find a home that suits their specific needs and preferences.

Trends in the market: One of the key trends in the Residential Real Estate Leases market in Austria is the increasing demand for rental properties in urban areas. This can be attributed to the growing urbanization trend, as more people are moving to cities for employment and educational opportunities. As a result, there is a higher demand for rental properties in popular urban areas, leading to an increase in rental prices. Additionally, the rise of the sharing economy and the popularity of platforms such as Airbnb have also contributed to the growth of the rental market, as property owners are now able to rent out their properties on a short-term basis, attracting both domestic and international tourists.

Local special circumstances: Austria's strong tourism industry also plays a significant role in the development of the Residential Real Estate Leases market. The country is known for its beautiful landscapes, historical sites, and cultural attractions, attracting millions of tourists each year. This has created a demand for short-term rental properties, particularly in popular tourist destinations such as Vienna, Salzburg, and Innsbruck. Property owners are capitalizing on this demand by renting out their properties to tourists, generating additional income and contributing to the overall growth of the rental market.

Underlying macroeconomic factors: Several macroeconomic factors are driving the growth of the Residential Real Estate Leases market in Austria. The country has a stable economy, low unemployment rates, and a high standard of living, making it an attractive destination for both domestic and international individuals seeking rental properties. Additionally, the low interest rate environment in Austria has made it more affordable for individuals to rent rather than buy, as mortgage rates remain relatively high. Furthermore, the government's favorable policies towards the rental market, such as rent control regulations and tenant protection laws, have provided stability and security for both landlords and tenants, further boosting the growth of the market. Overall, the Residential Real Estate Leases market in Austria is experiencing growth and development due to shifting customer preferences, increasing demand in urban areas, the influence of the sharing economy, the strong tourism industry, and favorable macroeconomic factors. These factors are expected to continue driving the growth of the market in the coming years.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 considered at a country-specific level.