Friday, 06. December 2013 - 10:12
22. 06. 12. - 17:00
In defiance of the global economic crisis the property market in the capital is continuing to soar with currently no end in sight.
With the city's tourism industry reporting a record number of visitors for the current year so far and the massive investment in making sure that the city looks at its best all year round it is an attractive location with a strong economy.
The residential property price index in Vienna rose by 9.6% (6.9% inflation-adjusted) during the year to end-Q1 2012, more than the year-on-year (y-o-y) price rises during the past three quarters of 6%, 7.9% and 7.8%, respectively, according to Oesterreichische Nationalbank.
During the latest quarter alone (Q1 2012), Vienna’s house prices rose by 4.3% (3.9% inflation-adjusted).
Property prices in the rest of Austria are also rising rapidly. If you exclude Vienna house prices soared by 11% (8.3% inflation-adjusted) during the year to end-Q1 2012. House prices in rose 8.5% (8.2% inflation-adjusted) q-o-q in Q1 2012, after a 1.2% rise in Q4, 4.1% rise in Q3 and a 2.9% drop in Q2 2011. Property price changes in the rest of Austria have been erratic ever since the index was assembled in 2000.
But house prices in Vienna have been rising consistently since Q3 2004. In the first district, the heart and historical centre of Vienna, prices have more than doubled within a decade. From Q1 2005 to Q1 2012, house prices in Vienna as a whole rose by 67% (45% inflation-adjusted), compared to a 33% (16% inflation-adjusted) house price increase in the rest of the country.
One of the reasons for the strong increase in value in Vienna is a difficulty of obtaining new building plots in the centre. Plus it is also the attractiveness of the city as a location for foreign investors - in this case particularly for Russians.
Surrounded by the Vienna Woods the city boundaries are limited and it is difficult for the city to expand - and as a former administrative centre and imperial city in has very few low class neighbourhoods so that almost anywhere in the city could be regarded as a desirable location.
And experts predict that property prices are likely to continue to rise for the remainder of this year despite the economic crisis across the Eurozone.
Institutional investors, banks and companies own around 70% of residential real estate in Vienna’s city centre and part of the reason for the strong demand is that there is little or nothing new coming onto the market. In particularly short supply are larger units over 100 metres squared, which means that their price has risen particularly high.
In the first district of the capital the country's most popular real estate magazine issued weekly in the Kurier newspaper has not launched a single first district house and no more than a handful of houses in districts 2 to 9.
Finissage for Outsider in a Box by Dwora Fried
Itâ€™s hard to believe that Dwora Fried â€” a native Austrian with unruly, fiery red hair, a lesbian, world traveler, mother of four and daughter of a Holocaust survivor â€” is able to create artwork just as complicated, dynamic and vivacious as herself, all within a wooden box thatâ€™s only 31 centimeters wide, 21 centimeters high and 8 centimeters deep.
Semmering Zauberberg Opens This Weekend
The long awaited ski start at Viennaâ€™s local ski resort Semmering Zauberberg kicks off this weekend when the pistes are opened for snow sports fans.
Meeting over oil production level held in Vienna
In a meeting behind closed doors in Austria this week, the Organisation of the Petroleum Exporting Countries (OPEC) decided to maintain their target for oil barrel production at 30 million a day.
Insurers encouraged to loan directly to big companies
Austrian insurers are being given access to additional revenue from early next year, when the country's markets watchdog will allow insurers to loan directly to big companies.
Bank Austria launches investigation into leaked data
Information published in the media about Bank Austria's history of speculative trading with public money has led the bank to launch an investigation into the leaking of customer data.
Austria sees biggest increase in property prices in Europe
Property in Austria has seen the highest rate of price growth in Europe since the Lehman brothers bank crashed, throwing the region and other countries housing markets into an economic downturn.
Acclaimed comedy show comes to Vienna
Vienna's English Theatre in the eighth district of the city is putting on two new shows in the new year, including one that may help to chase any post-Christmas blues away.
Iran nuclear meeting to be held in Vienna
Representatives from Iran, six mediators, and members of the International Atomic Energy Agency (IAEA) are meeting in Vienna in December to discuss an agreement made last month regarding Iranian uranium.
Austria paving the way in air traffic control
Austria has taken a step forward in the move to unify Europe's air traffic control systems by implementing the latest software from the Co-operation of Air Navigation Service providers (COOPANS).
Talks with China begin on high-speed railway from Vienna to Black Sea
Talks have begun with Chinese partners about the construction of a 'European corridor' that will connect Vienna to the Black Sea port of Constanta in Romania.
The most popular stories –
last 7 days
|Bank Austria Admits Former CEO Being Investigated Over Madoff Fraud|
|Finissage for Outsider in a Box by Dwora Fried|
|Win daily prizes with Viennas travelling Santa|
|Unemployment rises by 10.8 per cent in comparison to November 2012|
|Three days of musical festivities over New Year in Vienna|