Rents in Austria also rise in Corona times

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Rents have continued to rise in 8 out of 12 cities: In Vienna, a square meter costs an average of 14 euros – an increase of two percent.

Rents in Austria also rise in Corona times

Even in the crisis year 2020, living in Austria has become more expensive: In 9 out of 12 cities examined, the price per square meter for new rentals continued to rise last year despite the corona pandemic – including Vienna with an increase of 2 percent to a price of 14.00 euros.

In the most expensive cities of Innsbruck (EUR 17.70) and Salzburg (EUR 15.70) rents are also increasing by 3 percent each. This is the conclusion reached by immowelt.at, one of Austria's leading real estate portals. For this purpose, the asking rents for apartments (40 to 120 square meters) in the provincial capitals and largest cities in Austria were examined in a previous year comparison.

Vienna: increase of two percent since 2019

Compared to Austria, Vienna ranks in the top 5 most expensive cities with 14.00 euros per square meter. Since 2019, total rents in the federal capital have increased by a median of 2 percent from EUR 13.70. Despite its great appeal as an economic and cultural center, there has been no sharp rise in rental prices. Reasons for this include the subsidized housing construction and the low standard rent.

With the exception of Vienna, there is still a clear east-west divide in rental prices: The most expensive cities in Austria with prices above 15 euros per square meter are in the western federal states of Tyrol, Salzburg and Vorarlberg – the cheapest at around 10 euros per square meter East in Lower Austria, Carinthia and Burgenland.

Expensive west: Innsbruck continues to stand out

With a median price of 17.70 euros, Innsbruck is still by far the most expensive city in Austria. Since 2019 (17.20 euros), the square meter in asking rents has increased by 3 percent. Price drivers in the Tyrolean capital are the limited building space and apartments with mostly upscale furnishings. In recent years, employees from the long-booming tourism industry competed there with students from the renowned university for housing. So far, there is no sign that the housing market is developing differently due to the influence of Corona.

Something similar can be observed in Salzburg, the second most expensive city in the study: a square meter there costs 15.70 euros on average – also an increase of 3 percent. Dornbirn in Vorarlberg follows closely behind (15.50 euros) with an increase of 4 percent over the previous year. The situation is different in the Vorarlberg capital Bregenz: After rents there have risen steadily in recent years, the city on Lake Constance will record a minimal price adjustment to 14.10 euros (-1 percent) in 2020.

Eastern Austria: between decline and increase

Rents in Austria tend to be cheaper the further east a city is. Despite the highest increase of all 12 cities, the Burgenland state capital Eisenstadt (+5 percent) remains the cheapest in comparison with 9.70 euros. In the smallest state capital, the number of inhabitants is rising steadily – the demand for new apartments is also increasing accordingly. As a result, more apartments with high-quality equipment are being built, which can explain the increase.

The second cheapest is living space in Klagenfurt: tenants there pay an average of 9.90 euros per square meter. The capital of Carinthia is the only city in the study to show no change from the previous year. A moderate decrease in rents of 2 percent can be seen in St. Pölten. Tenants there pay an average of 10.10 euros per square meter.

Detailed tables of results are available for download at immowelt.at.

Calculation basis

The database for the calculation of rental prices in the 12 cities were offers advertised on immowelt.at. Only offers that were increasingly in demand were considered. The prices reflect the median of the apartments offered in 2019 and 2020 between 40 and 120 square meters. The median is the mean value of the asking prices. The rental prices are total rents (net rents including operating costs) for new rentals.

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