Property prices continue to soar in Austria

Property prices continue to soar in Austria

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. 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.