The Austrian property market is one of the most stable and best performing markets in the world, which makes the fact that it receives hardly any share of the limelight surprising.
To judge the performance of overseas property markets (to justify the statement above) we feel it is best to start looking at Q3 last year and work forwards. This is because Q3 2008 is when it became apparent that the US crash was going to go global.
The Knight Frank index for Q3 tells us that Austrian property prices grew 9.7% year on year in the third quarter of last year, at which time the index showed Austria as the world’s second best performing market. Prices grew 5.2% year on year in the fourth quarter.
This has been followed by an even stronger performance this year, with prices up a quarterly 2.8% in the first quarter according to Knight Frank, and up 6.8% on a quarterly basis according to the Bank of Austria—this the largest quarterly growth since Q2 2004 according to the bank. The two put year on year growth for the first quarter 8.7% and 4.8% respectively.
This growth is good news and bad news for the Austrian property market. On one hand investors are looking for markets that have proven resilient against financial jolts, and Austria’s performance is attractive. On the other, prime buyers have been prevalent and have forced up prices, which leaves it difficult for lower level buyers to get on the property ladder.