1660124232 Deloitte Property Index 2022 House prices rise by double digits

Deloitte Property Index 2022: House prices rise by double digits in Austria


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Vienna (OTS) – Not only have food and fuel prices increased in recent months, the dream of home ownership is also becoming increasingly expensive. According to the Deloitte Property Index 2022, the price per square meter for new apartments in Austria has increased by an average of 11% in 2021 – although the Alpine republic is the European leader in terms of residential construction projects per 1,000 inhabitants. For tenants, on the other hand, it remains comparatively affordable in this country. With an average of 8.66 euros per square meter, rent in Vienna was even cheaper than in Graz or Linz. That puts you in the bottom third in Europe.

With the Property Index, the consultancy Deloitte annually analyzes the European real estate market. And the analysis confirms what many people have already realized: buying real estate is increasingly difficult to pay for. The average price per square meter for new apartments in Germany in 2021 was 4,782 euros. This means an increase of about 11%. And the price increase continues: according to current analyses, property prices rose by almost 13% in the first quarter of 2022. This means that Austria – along with Germany and France – is now one of the most expensive European countries that participate in the Property Index. UK homebuyers have to pay more: the price per square meter is 4,905 euros.

In the ranking of cities, however, the Austrian capital was far behind cities like Paris with 13,462 euros or Munich with 10,500 euros with an average price of new apartments of 5,788 euros per square meter in the period under study.

“House prices in Vienna are about 21% above the Austrian average, but even if it seems paradoxical to some, our capital is relatively affordable,” says Gabriele Etzl, Partner and Head of Property at Deloitte Legal. “For comparison: in Lisbon you pay more than three times more than the average price of a property in Portugal. The urban-rural divide is much wider here.”

Austria remains European champion in construction projects

In terms of residential construction projects per 1,000 inhabitants, it is clear again: nowhere are more construction projects being planned than in Austria. In 2021, a total of 10.6 projects were started per 1,000 inhabitants. Poland with 7.3 and Slovenia with 6.1 construction projects per 1,000 inhabitants follow a considerable distance. Italy ranks last in the Deloitte study with 1.0 construction projects initiated per 1,000 inhabitants.

Viennese rent cheap as usual

Vienna was once again able to live up to its reputation as an affordable city for rent in this year’s review. While a square meter price of 29.10 euros had to be reckoned with in the center of Paris, in Vienna the average price was only 8.66 euros during the study period. This means that Austria’s capital is even cheaper than other domestic cities such as Graz at 10.40 euros or Linz at 10.22 euros per square meter. It is even cheaper to rent in cities like Bucharest (7.50 euros), Turin (6.86 euros) or Sofia (4.60 euros).

Bottom line: The COVID-19 crisis and historically low interest rates triggered a real flight to “concrete gold” in the past year. “This development has also made living in this country increasingly expensive. While rentals in the capital are still affordable for the general public, owning a property is now a luxury,” says Gabriele Etzl.

To go down:
Deloitte Property Index 2022: https://deloi.tt/3zS1e7E
Photo Gabriele Etzl Credits Deloitte/feelimage: https://deloi.tt/3iL3FPS

Questions and contact:

Deloitte Austria
Mag. Armin Nowshad
Head of Corporate Communication
+43 1 537 00 8556
[email protected]
www.deloitte.at