Graz

Overview

Graz is the capital of Styria in southeastern Austria, positioned on the Mur River and functioning as the region’s cultural and administrative center. Often associated with its well-preserved historic core and strong university presence, the city plays an outsized role in Austria’s innovation and education landscape while remaining distinctly livable and human-scaled compared with the country’s largest metros.

Economy & Business

Graz benefits from Austria’s high-income economic context, with GDP per capita of 58,269. Recent momentum is mixed, with GDP growth at -0.66%, while the labor market remains relatively steady at 5.58% unemployment. Inflation of 2.94% shapes household budgets and operating costs, but the city’s economic base is supported by a combination of public administration, higher education, and research-driven activity.

A defining feature of the local business environment is the concentration of universities and applied research institutions, which helps sustain a pipeline of skilled graduates and encourages collaboration between academia and industry. This ecosystem supports knowledge-intensive firms, engineering-oriented work, and a steady services sector tied to the city’s role as Styria’s capital.

Lifestyle & Livability

Graz scores strongly on livability fundamentals, with an Overall BCI score of 78.5. Safety is a standout advantage: Safety 88 signals a secure day-to-day environment that appeals to families, students, and international residents alike.

Cost pressures are present but comparatively manageable, reflected in Cost of living 68—suggesting a city that can be easier to budget for than many major European capitals, while still offering strong urban amenities. Daily life is shaped by a compact city layout, a large student population, and an active cultural calendar, with walkable neighborhoods and a clear separation between the historic center and modern districts.

Notable Features

Graz’s identity is closely tied to its historic old town and recognizable hilltop landmark, the Schlossberg, which anchors the city’s skyline and public life. The city’s academic footprint—centered around major universities—also gives it a youthful rhythm and a steady influx of international visitors and residents, reinforcing its reputation as a practical base for living, studying, and working in Austria.