Austrian leasing industry grows despite economic challenges

Despite economic headwinds, the Austrian leasing industry continues to expand, demonstrating resilience in a challenging financial climate. According to the Verband Österreichischer Leasing-Gesellschaften (VÖL) – the Association of Austrian Leasing Companies – new leasing business grew to €9.13 billion in 2024, marking a 1.3 percent increase from the previous year.

The total portfolio volume reached €27.62 billion, with 806,131 active leasing contracts as of December 31, 2024.

The primary driver of this growth remains vehicle leasing, which saw a substantial increase. The domestic new business volume in this segment surged by 5.8 percent to €7.368 billion. Additionally, the portfolio volume expanded by €633 million, or 4.1 percent, reaching €16.17 billion.

The number of newly concluded vehicle leasing contracts in Austria rose by 7.6 percent, adding 15,392 contracts to a total of 216,836. Notably, the fleet sector experienced a 6.2 percent rise in portfolio volume, totalling €2.83 billion.

In contrast, equipment and real estate leasing faced declines amid broader economic challenges. The equipment leasing segment recorded a 4.8 percent drop in new business volume after two consecutive years of growth, with 137,590 contracts in total.

Meanwhile, real estate leasing experienced a sharper contraction, with a significant 51.6 percent decrease in new business volume, amounting to a loss of €207 million. The average contract value of new real estate leasing agreements, however, rose by 4.2 percent year-on-year to €7.46 million, highlighting a general hesitancy toward large-scale investments in the sector.

Despite the mixed results across segments, industry leaders remain optimistic about the role of leasing in supporting economic investment.

“The overall economic reluctance to invest poses a challenge for the leasing industry. However, the business figures confirm that leasing remains a highly attractive financing option and a key driver of investment,” stated Dr. Magdalena Gruber, the newly appointed Secretary General of VÖL.

Looking ahead, industry experts anticipate that 2025 will bring significant adaptation and innovation in the leasing market.

“We expect sustainable and digital financing models to gain prominence, helping companies navigate economic uncertainties while fostering continued growth,” remarked Dr. Alexander Nekolar, President of VÖL.