Safe investment: Austrians are increasingly relying on real estate!

Safe investment: Austrians are increasingly relying on real estate!

In the last few weeks, demand for real estate as a form of investment in Austria has increased noticeably. A recent survey by Raiffeisen Immobilien shows that 52% of respondents cite security as the main motive for their investments. This underlines the general tendency to rely on stable forms of investment in economically uncertain times. In addition to security, 46% of participants cited positive performance and 43% cited capital preservation as other important reasons for their decision to invest in real estate. Ing. Mag. (FH) Peter Weinberger from Raiffeisen Immobilien emphasizes that the demand for investment properties has increased significantly due to these factors.

Real estate prices have stabilized after a correction and the European Central Bank has reduced key interest rates, which has eased the financial leeway of many households. According to Prok. Peter Mayr from Raiffeisen Immobilien, home ownership plays a crucial role in wealth creation and retirement planning. Acquiring property early is seen as protection against rent increases and age insecurity.

Motivations and trends in real estate investment

The Gallup survey also shows the main purposes for real estate investments: 60% of those surveyed aim for their own use, while 39% invest to provide for their children and relatives and 35% of those surveyed see real estate as an investment. When it comes to the preferred property types for investments, houses are clearly ahead at 66%, followed by condominiums at 53%. Interestingly, interest in condos has increased year-over-year, from 40% in 2024 to 53% currently.

Regional trends show that 49% of investors purchase real estate for investment purposes, particularly in Upper Austria and Salzburg. In Vienna the value of 44% is also above the Austrian average of 35%. Self-employed and freelance people in particular show a high interest in real estate investments at around 60%. It is striking that people under 30 have the greatest interest in investing in real estate at 40%, while this only accounts for 25% of people over 51.

Recovery trends on the European real estate markets

Parallel to the developments in Austria, MIPIM, the most important European location and real estate trade fair, is currently taking place in Cannes. According to reports from EHL Immobilien, there are clear signs of recovery on the European real estate markets. EHL's Michael Ehlmaier points out that political initiatives, particularly related to the Ukraine crisis, are strongly influencing the European real estate landscape.

Although investor interest has declined in recent years due to uncertain economic conditions, experts expect a turnaround over the course of the year, with increasing demand across all asset classes. Franz Pöltl from EHL Investment Consulting notes that the operational business in the rental sector is growing faster than investor interest. Despite the challenges of financing and the burden of inflation, Vienna still offers attractive returns and potential for rent increases.

The key interest rate cuts could have a positive impact on mortgage interest rates and returns. Stefan Wernhart from EHL Gewerbeimmobilien emphasizes that sustainability and ESG compatibility are becoming central factors for renting. The variety of rental forms is increasing, with a growing interest in furnished apartments and serviced apartments.