Vienna's real estate market 2025: Existing apartments as stable crisis winners!

Vienna's real estate market 2025: Existing apartments as stable crisis winners!

Vienna's real estate market will show clear divisions by the end of 2025, presenting challenges for both buyers and investors. While prices for luxury apartments in the inner city are coming under pressure, existing apartments in the outer districts such as Favoriten and Donaustadt are enjoying stable demand. This development is favored, among other things, by the crisis in the new construction sector, which is leading to a significant decline in the completion of new residential projects by around 30 percent. According to information from Ad Hoc News The scarcity of new supply draws demand towards existing apartments, which explains the price stability in the outskirts.

Prices for condominiums in the new construction sector average just under 7,000 euros per square meter. Despite falling interest rates and a gradual recovery in the property market, the completion of new apartments continues to lag behind actual demand. For 2025, a decline in new rental apartments is estimated to be more than 50 percent compared to the previous year, which will continuously increase the supply gap, reports Vienna.at.

Sustainable increase in rental prices

The tense situation in the Vienna rental market means that rents have already risen by over 5 percent in many areas. In sought-after locations there is not enough supply and apartments are often re-allocated immediately after the previous tenants move out. Such developments make the search for rental apartments a stressful affair, requiring interested tenants to act quickly. Quick decision-making is particularly required in the middle price segment, as EHL predicts an average increase in rental prices of 5.4 percent for 2025.

In the outskirts such as Favoriten, where prices per square meter for existing apartments are between 3,600 and 5,500 euros, the positive effects of good ecological connections and the attractiveness for young families are evident. An intensive influx and interest from first-time buyers make these areas particularly popular, which can also be observed in the Danube city, where existing apartments are increasing in value due to the new construction crisis.

Looking into the future of the market

Given the current market developments, buyers and investors must demonstrate good judgment in their decisions. EHL expects construction activity to lag behind actual housing demand until at least 2029, keeping the situation still tense. Political measures, such as the suspension of indexation for rents in old buildings, could put additional pressure on landlords.

Overall, it can be said that while the luxury segments in the city center are under pressure, there is a clear trend towards existing apartments in the outskirts. However, buyers should be quick and willing to compromise when it comes to finding the right apartment and getting a good deal. The Vienna real estate market remains exciting - and not just for investors, but also for everyone who is looking for a new home.