The average rent price of residential property in Austria has increased year-on-year since the beginning of the reporting period. In 2023, the average rent in Austria was approximately 9.4 euros per square meter. Salzburg had the highest prices, at 11.3 euros per square meter. Across the major European housing markets, house prices and rents have been increasing steadily in recent years.

The average rent of residential property in Austria has increased year-on-year since 2005, except for a slight decline in 2021 related to the COVID-19 pandemic. In 2023, the average gross rent (including operational costs) was approximately 625.3 euros. Nevertheless, prices varied across different states, with Salzburg, Tyrol, and Vorarlberg recording the highest rental prices in Austria.

The prime rent for office real estate in Vienna, Austria has increased slightly since 2013. In 2021 and 2022, the annual rent for prime office space amounted to 312 euros per square meter. The average rental rate peaked in 2024 at 342 euros per square meter, up from 306 euros per square meter in 2013. In Europe, London, Paris, and Stockholm were the markets with the most expensive rents.

The average rental cost of office real estate in Austria has actually decreased with some fluctuation per square meter between 2012 and 2018. By 2018, the average monthly rental cost per meter for prime office property costs an average of 14.5 euros. This was ten euros per square meter less than the cost of prime rents.

Amsterdam is set to maintain its position as Europe's most expensive city for apartment rentals in 2025, with median costs reaching 2,500 euros per month for a furnished one-bedroom unit. This figure is double the rent in Prague and significantly higher than other major European capitals like Paris, Berlin, and Madrid. The stark difference in rental costs across European cities reflects broader economic trends, housing policies, and the complex interplay between supply and demand in urban centers. Factors driving rental costs across Europe The disparity in rental prices across European cities can be attributed to various factors. In countries like Switzerland, Germany, and Austria, a higher proportion of the population lives in rental housing. This trend contributes to increased demand and potentially higher living costs in these nations. Conversely, many Eastern and Southern European countries have homeownership rates exceeding 90 percent, which may help keep rental prices lower in those regions. Housing affordability and market dynamics The relationship between housing prices and rental rates varies significantly across Europe. As of 2024, countries like Turkey, Iceland, Portugal, and Hungary had the highest house price to rent ratio indices. This indicates a widening gap between property values and rental costs since 2015. The affordability of homeownership versus renting differs greatly among European nations, with some countries experiencing rapid increases in property values that outpace rental growth. These market dynamics influence rental costs and contribute to the diverse rental landscape observed across European cities.

AT: Standardised Price-Rent Ratio: sa data was reported at 114.528 Ratio in 2024. This records a decrease from the previous number of 122.561 Ratio for 2023. AT: Standardised Price-Rent Ratio: sa data is updated yearly, averaging 96.285 Ratio from Dec 2000 (Median) to 2024, with 25 observations. The data reached an all-time high of 135.974 Ratio in 2022 and a record low of 84.151 Ratio in 2004. AT: Standardised Price-Rent Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Austria – Table AT.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by rent price indices. The long-term average is calculated over the whole period available when the indicator begins after 1980 or after 1980 if the indicator is longer. This value is used as a reference value. The ratio is calculated by dividing the indicator source on this long-term average, and indexed to a reference value equal to 100.

Innsbruck was the most expensive Austrian city to buy an apartment in, with average values of 7,760 euros per square meter in the first quarter of 2024. The price of an apartment in Graz was significantly lower at 4,380 euros per square meter.

The house price to rent ratio in Austria increased between 2015 and 2022, followed by a decline 2023 onwards. In the second quarter of 2024, the house price to rent ratio amounted to ***** index points, down from ***** index points in the second quarter of 2023. The house price to rent ratio is calculated by dividing nominal house prices by rent prices, with 2015 as a base year with the index value set to 100. An index value of *** means that house price growth outpaced rental growth by ** percent since 2015. As compared to the OECD average, Austria had a lower house price to rent ratio.

The cost of prime warehouse, logistic and distribution real estate in Austria has fluctuated per square meter between 2012 and 2018. Prime warehouse properties on average have cost slightly more in rent per square meter than logistic and distribution properties.

London stands out as the most expensive city for renters among the 21 European cities ranked, with an average price of 42.5 euros per square meter in the fourth quarter of 2024. This figure was significantly higher than other major cities, with Amsterdam and Oslo following at 27.3 and 26.7 euros, respectively. The stark contrast in rental costs across European cities reflects broader economic trends, housing policies, and the complex interplay between supply and demand in urban centers. Rental market trends across Europe The disparity in rental prices can be partially explained by varying rates of homeownership across European countries. Switzerland, Germany, and Austria have the highest proportion of residents living in rental housing, with Switzerland's rate of approximately 58 percent nearly doubling the European Union average. In contrast, many Eastern and Southern European countries, including Albania, Romania, Slovakia, and Serbia, have homeownership rates exceeding 90 percent, which may contribute to lower rental prices in these regions. Popularity of rental properties among investors The varying rental rates across European cities align with investment trends in the real estate market. Residential rental properties are attracting significant investor interest, potentially influencing rental markets in cities like London, Frankfurt, and Dublin. On one hand, increased development of residential properties for sale or rent offers a relief for overheated markets. On the other hand, investment does not always guarantee affrodable rents.

In 2024, Switzerland had the highest average annual rent for self-storage facilities in Europe. The average annual rental price for self-storage facilities in Switzerland was *** euros per square meter. Austria and the United Kingdom (UK) followed closely, with the mean annual average rent for self-storage stores ranging from *** to *** euros per square meter. On the other hand, the rents for self-storage spaces in Norway and Lithuania were relatively low, with both places paying *** and *** euros per square meter, respectively.

Rents paid for housing in Austria have increased nominally year-on-year between 2011 and 2023. Nevertheless, the inflation-adjusted change was negative between 2021 and 2022, suggesting that rents grew at a slower rate than inflation. In 2023, the nominal increase in rents paid for housing amounted to 7.85 percent, while the real change (adjusted for inflation) amounted to 0.03 percent. Overall rents in Austria have grown faster than the average in the euro area.

In 2023, the average buy-vs-rent ratio in Europe was ***. The highest ratios were in Austria at *** and Germany at ***, indicating that it was more than twice as expensive to buy than to rent in these markets. The lowest ratios were found in Spain and Finland, at *** and *** respectively, making buying more economical than renting.

Switzerland, Germany, and Austria were the European countries with the highest share of the population living in rental housing in 2023. In Switzerland, approximately ** percent of households occupied rental housing, nearly twice the average for the European Union. Thanks to a high homeownership rate, the share of tenants among the population in many East and South European countries was below ** percent. These countries included, Albania, Romania, Slovakia, and Serbia.

In the presented European countries, the homeownership rate extended from 42 percent in Switzerland to as much as 96 percent in Albania. Countries with more mature rental markets, such as France, Germany, the UK and Switzerland, tended to have a lower homeownership rate compared to the frontier countries, such as Lithuania or Slovakia. The share of house owners among the population of all 27 European countries has remained relatively stable over the past few years. Average cost of housing Countries with lower homeownership rates tend to have higher house prices. In 2023, the average transaction price for a house was notably higher in Western and Northern Europe than in Eastern and Southern Europe. In Austria - one of the most expensive European countries to buy a new dwelling in - the average price was three times higher than in Greece. Looking at house price growth, however, the most expensive markets recorded slower house price growth compared to the mid-priced markets. Housing supply With population numbers rising across Europe, the need for affordable housing continues. In 2023, European countries completed between one and six housing units per 1,000 citizens, with Ireland, Poland, and Denmark responsible heading the ranking. One of the major challenges for supplying the market with more affordable homes is the rising construction costs. In 2021 and 2022, housing construction costs escalated dramatically due to soaring inflation, which has had a significant effect on new supply.

In 2024, Bulgaria, Hungary, and Spain exhibited the highest inflation-adjusted increase in house prices among the countries under observation. In the fourth quarter of the year, house prices in Bulgaria grew by nearly ** percent in real terms, whereas globally, prices declined by about * percent. The country with the highest price drop was Luxembourg, at almost ***** percent. Turkey, France, and Austria also experienced a notable decline in prices, at **, *** and *** percent, respectively. These figures are based on the development of the real house price index, with 2010 chosen as a baseline year. When looking at the long-term index development, Turkey observed the biggest increase in prices in the region. When looking at the average house price in the major European markets, Norway emerged as the country with the most expensive residential property. Meanwhile, cities such as Geneva, Zurich, and London had the highest average apartment prices.