Austrian Homes: A Cultural Tour

Austria offers a variety of housing options, from cosy wooden chalets in the mountains to urban apartments and period houses in the cities. The country is known for its high-quality construction and eco-friendly standards, with new builds boasting energy-efficient materials and green energy solutions. The housing market in Austria is stable, with the average price of a new home at €359,000. However, prices vary across regions, with rural areas and outskirts of large cities offering more affordable options.

Homes in Austria range from wooden alpine lodges, cottages, urban flats, and studio apartments

Austria is a captivating country, offering a blend of historic cities, majestic alpine landscapes, and tranquil countryside. The country is also famous for its world-class skiing and winter sports, with luxurious resorts in places like Kitzbühel, Lech, and St. Anton am Arlberg. Whether you're seeking a vibrant cultural scene or serene natural beauty, Austria provides a luxurious and fulfilling lifestyle.

Homes in Austria range from wooden alpine lodges and cottages to urban flats and studio apartments. If you're looking for a traditional alpine experience, you can find charming wooden lodges and cottages nestled in the mountains. These homes offer a cosy and rustic charm, often featuring panoramic views of the stunning Austrian Alps.

For those seeking a more modern and urban lifestyle, Austria's cities provide a variety of options. You can find renovated period houses, chic studio apartments, and urban flats that offer convenient access to the vibrant cultural scenes of cities like Vienna and Salzburg. These homes often feature high-quality, eco-friendly construction, reflecting the country's commitment to sustainability.

In addition to the variety of housing options, Austria also offers a strong real estate market. The rate of homeownership in the country is increasing, and the average cost of a new house is currently €359,000. With a stable housing market and favourable mortgage options, buying property in Austria is considered a solid investment.

Whether you're seeking a traditional alpine lodge or a modern urban flat, Austria has something to offer for everyone. The country's diverse range of housing options, coupled with its breathtaking natural beauty and rich cultural heritage, make it a prime destination for those seeking a luxurious and fulfilling lifestyle.

New builds in Austria are made with high eco-friendly standards

Austria has one of the highest concentrations of sustainable housing in the world. The country has established itself as a leader in eco-innovation measures in housing, with all new builds made with high eco-friendly standards.

Austria created the concept of Passivhaus (Passive House), a voluntary standard for energy efficiency to reduce a building's ecological footprint. Since establishing the standard in 1994, Austria has built more than 14,000 buildings to passive house standards. These passive houses are a combination of energy efficiency, comfort, and affordability. They achieve space heating and cooling-related energy savings of up to 90% compared to a typical building and over 75% compared to average new builds. They also use less than 1.5 litres of oil or 1.5 cubic metres of gas to heat one square metre of living space for a year.

In 2009, Austria introduced tough measures to increase energy efficiency in both public and private buildings. The housing and construction measures are mandatory across the nine states in the nation. The policy cuts energy consumption and greenhouse gas emissions in housing, with the government phasing out oil heating and introducing new regulations for heating. High-quality building materials and energy-efficient building methods are expected.

Austria's commitment to eco-friendly housing is also reflected in its agricultural policies. The country has consistently geared its agricultural policies towards high-quality and healthy products through Europe's most exacting agri-environmental programme. Austrian farmers have become pioneers in the country's ecological orientation, with approximately 16.2% of all agricultural holdings and about 19.2% of the farming area in Austria being organic.

The country's first eco-village, Cambium Leben, is being built on the site of abandoned barracks near Graz. The new houses in the village are constructed from natural materials such as sand, clay, and straw, which effectively retain heat. The water used for domestic purposes is filtered and then used to water plants, and the buildings are heated with composted bark, which has a low carbon dioxide emission.

The average price of a new house in Austria is €359,000

The housing market in Austria is currently performing well, with property prices increasing in 2020, despite the COVID-19 pandemic. However, there are signs that demand is weakening, with the number of housing loans decreasing and interest rates rising.

There are many types of houses to choose from in Austria, from wooden alpine lodges and cosy cottages in the mountains to urban period houses and renovated flats. The country also offers a mix of social and private housing. Social housing is well-designed and can be accessed by both low and moderate to middle-income households.

If you're considering buying a home in Austria, be prepared for some additional costs. For example, estate agent fees can range from 3% to 4% of the property value, while legal fees can be 1% to 3% plus VAT. There are also notary fees and registration duties to consider.

Overall, Austria's housing market offers a range of options, from cosy cottages to modern eco-friendly apartments, with prices varying by location and property type.

There are two types of homes in Austria: property and co-property

Property

When you own a property in Austria, you have full control over your home and the land it sits on. This means you can make changes and renovations to the existing structure as you see fit. However, one important restriction to keep in mind is that you cannot build any additional structures on the land. This type of ownership is suitable for those who want more control over their living space but don't necessarily need the option to build new structures on their property.

Co-property

Co-property ownership in Austria comes with the advantage of being able to build additional structures on the land. This type of ownership is ideal for those who may be looking to expand their living space or develop the land further. However, it's important to note that co-property ownership may come with certain restrictions on renovations or changes to the existing structures, which could be a consideration if you're planning on making significant alterations to your home.

Choosing Between the Two

When deciding between property and co-property in Austria, it's essential to consider your current and future needs. If you prioritise having full control over your home and land, then property ownership is the way to go. On the other hand, if the ability to build new structures is important to you, then co-property is the better option. Additionally, other factors such as cost, location, and personal preferences will play a role in your decision.

Housing Options in Austria

Austria offers a diverse range of housing options, from cosy studio apartments and urban flats to wooden cabins and cottages in the mountains. You can also find charming wooden alpine lodges, renovated flats, and period houses. Whether you're looking for a traditional or modern home, Austria has something for everyone. Additionally, the country is known for its high-quality construction and eco-friendly standards, especially in newer buildings.

Foreigners can buy property in Austria but need a permit

Austria has a wide range of housing options, from cosy wooden cabins and cottages in the mountains to urban flats and period houses. The country is known for its high-quality, eco-friendly construction, with all new builds adhering to sustainable standards.

If you're considering buying property in Austria as a foreigner, it's important to note that while it is possible, there are some requirements and restrictions in place. Here's what you need to know:

Yes, foreigners can purchase property in Austria, but the process varies depending on their nationality. Citizens of the European Union (EU), the European Economic Area (EEA), and Switzerland can buy property without any additional restrictions and are treated equally to Austrian citizens.

However, for non-EU/EEA citizens, the process is more complex. If you are a citizen of a third country (non-EU/EEA), you will generally need a special permit to buy property in Austria. The regulations for obtaining this permit are set independently by each region, so it's crucial to understand the rules in your desired area before initiating the purchasing process.

In certain popular ski resort areas, such as Tyrol and Vorarlberg, the requirements are stricter. In these regions, you must be an EU citizen or register the purchase under a European company to buy property. Obtaining the necessary permit can take up to six months, and it's important to ensure that your intended purchase and use of the property align with the local authorities' criteria.

To obtain a permit to purchase property in Austria as a non-EU/EEA citizen, you will typically need to meet specific criteria. According to the Austrian government, permit applications are likely to be approved if the purchase is in the cultural, social, or macroeconomic interest of the country and does not negatively affect national interests.

When buying property in Austria, there are several costs to consider beyond the property price. Here are some of the essential expenses you need to budget for:

• Property transfer tax: 3.5% of the property value.
• Land registration fee: 1.1% of the purchase price.
• Estate agent's fee: Typically 3% to 4% of the property value, paid by both the buyer and the seller.
• Legal fees: 1% to 3% of the property price, plus 20% VAT.
• Notary fee: Up to €120 per person, plus 20% VAT.
• Registration duty: Approximately €400.
• Stamp duty: 0.5% to 1% of the property value.
• Mortgage fees: Around 1% of the property value.

It's important to note that these costs are in addition to the purchase price of the property and can add up to a significant amount.

Austria's property market is generally stable and was not severely impacted by the COVID-19 pandemic. Prices have been rising steadily, but the country remains more affordable for homebuyers compared to many other European nations.

Property prices are highest in major cities like Vienna and are increasing at a faster rate than in other areas. However, there are still relatively affordable options within Austria, such as the cities of Graz and Klagenfurt am Wörthersee.

• Find a property and arrange viewings: Use online property portals and/or local estate agents to search for properties that match your criteria.
• Make an offer: Once you've found a property you're interested in, submit a competitive offer or bid in writing to the real estate agent or directly to the seller. Remember that a verbal expression of intent to purchase can be legally binding in Austria, so be sure of your commitment before making an offer.
• Sign the pre-sales contract: If your offer is accepted, both parties will sign a legally binding pre-sales contract, known as the "Kaufanbot." This is also the time to finalise your financing and arrange for a building survey or inspection.
• Pay the deposit: You will typically need to pay a deposit of around 10% of the purchase price to the notary handling the sale. This deposit will be held in escrow until the purchase is finalised.
• Apply for your permit: If you require a permit as a non-EU/EEA citizen, this is the time to apply for it. Make sure to allow enough time for processing, as it can take up to six months.
• Sign the purchase contract: This final sales contract should be signed by both parties in the presence of a notary or official witnesses at an Austrian Embassy or Consulate if you are not in Austria. At this stage, you will also need to arrange for the transfer of the remaining balance.
• Complete the land registry: Once the contract is signed, the notary will prepare the title deeds and enter them into the Land Registry.
• Pick up your keys: After all the paperwork is complete, you can collect the keys to your new Austrian home!

Any Other Things to Keep in Mind?

• Language barrier: If you don't speak German fluently, navigating the intricacies of the Austrian property market may be challenging. Consider seeking assistance from a local real estate agent or legal professional.
• Zoning classification: It's crucial to check the zoning classification of the land (Baulandwidmung) before purchasing. This determines the permitted use of the land (residential, commercial, etc.). Changing the classification later on can be difficult and time-consuming.
• Land Register (Grundbuch): Be sure to check the Land Register before finalising the purchase. This will provide details of the property's legal status, including any restrictions, mortgages, or other relevant information.
• High fees and taxes: Austria has relatively high fees and taxes associated with buying property. Budget properly to avoid unexpected costs.
• Residency requirements: In some cases, you may need a residence permit to buy property in Austria. This can be a factor for non-EU/EEA citizens.

Frequently asked questions