The residential property market in Vienna shows mixed trends: in general, the price of flats is declining, but there is a steady increase in high-end areas. At the same time, demand, especially for rentals, remains high and new construction is declining.
In the fourth quarter of 2024, the overall price index for Austria decreased by 1.08 per cent and for Vienna by 2.08 per cent compared to the same period in 2023 (-3.91 per cent adjusted for inflation). Meanwhile, the quarterly change in Vienna is minimal, a barely noticeable decline (about -0.55% in real terms). But in the premium districts (Innenstadt, Debling), price increases of up to +5-15% over the year. Prices by area average price in Vienna in June 2025-about €5,500/m2 Innenstadt (1st district): about €25,000/m2 (up +29.8%) suburbs (Floridsdorf, Donaustadt): €3,500-5,000/m2 respectively, range (Via Investropa): €3,600/m2 (suburbs) – €27,000/m2 (centre). Buy or rent? Average rent for 1-bedroom: In the centre – €1,000-1,100/month,in the suburbs – €700-1,000/month, in the centre – higher for short-term accommodation (Airbnb up to €91/day, occupancy rate ~77%). Loan rate: around 3.2-3.9% (10-year). One-off costs on purchase (notary, fees) – around 9-13% of value.
At the same time, only about 1,800 new rental flats are expected to be built in 2025 – 60% less than in 2024. the volume of new mortgage loans has also fallen: ~€11.3bn in 2024 vs. €23.2bn in 2022. housing construction fell by 4.9% in 2024 (based on Q3 data). By 2026, experts expect moderate price growth due to an improving economy and overcoming the downturn in construction. The rental market will grow: expected yields of 3-4%, especially on short-term rentals.