Investing in Austria
The Austrian real estate market
As a business location (exact details can be found on the multilingual website of “Invest in Austria“), Austria plays a special role in Europe with which only a few countries can compete. One factor is its excellent, central geographical and geopolitical location. Moreover, Austria is known for its beautiful nature, rich cultural heritage and highly developed, high-quality tourist infrastructure. Every year hundreds of exhibitions, congresses and festivals are held here. For many decades Austria has been the preferred region for numerous companies offering their services in the field of business tourism.
Today, the share of business travellers accounts for more than 11.6% of all visitors arriving in Austria. In fact, in the 2019 ranking of cities by ICCA (International Congress and Convention Association), Vienna was the country with the second highest number of business travellers.
In the annually published ranking list of the “Mercer Quality of Living Survey“, Vienna has since 2010 consistently been ranked number one in the world as the city with the highest quality of life.
In 2019, the magazine “Economist” ranked Vienna as the “most livable city” worldwide.
Furthermore, Vienna has been voted the “Greenest City in the World 2020” by bestcities.org.
Austria as a whole always ranks at the top of the IMD World Competitiveness Yearbook; in 2019 on place 2 directly behind Switzerland.
For historical reasons, the Austrian capital is considered a diplomatic hub. It is not only the seat of the Austrian Federal Government, but also one of the three locations of the UN and the headquarters of many associated international organizations. Accordingly, Vienna attracts tourists from all over the world as well as countless diplomats and conference visitors.
Due to Austria’s attractiveness for business travellers and tourists, almost all leading international hotel chains are represented: Hilton International, InterContinental Hotels, Le Meridien, Marriott, Renaissance Hotels, NH Hotels, Radisson SAS Hotels & Resorts, Starwood Hotels & Resorts, Sheraton Hotels, Westin Hotels and many more. In addition, the Austrian hotel chains Austria Hotels International, Austria Trend Hotels & Resorts, etc. are in great demand. Of course, there are many privately managed hotels that specialize in a target group (business clients, sports, wellness, city tourism, etc.). In the case of a purchase, investors can buy a hotel property which already has a large international company that is a leader in the hotel sector as a tenant, or can purchase a hotel property without a tenant and operate the hotel themselves.
For roughly the past century, Vienna has strived to provide affordable living for its citizens. Due to the prevalence of public housing and council flats, the municipality of Vienna is the largest landlord in the city. In addition, there are residential buildings built by cooperatives and subsidised construction, the latter of which has become increasingly common over the past few decades. Vienna’s housing system serves as a model for equitable urban development throughout Europe and is an key factor in maintaining a high quality of life for residents of the city, without deterring investors from creating the necessary housing.
The average rent per square meter of living space is currently €9.60. Nevertheless, the average return on real estate assets is comparable to other European capitals.