Last chance: Vienna-Favoriten offers modern apartments before tenancy law reform!

Last chance: Vienna-Favoriten offers modern apartments before tenancy law reform!

At the turn of the year 2025, those looking for apartments in Vienna are facing a crucial phase in the real estate market. From January 1, 2026, new rental law regulations will come into force that will increase the minimum term for rental agreements from three to five years. This means that landlords will be tied to their tenants for longer in the future, which could also change strategies in the rental market. Today, tenants still have a short window of opportunity to benefit from a variety of new, modern apartments. Some new construction projects in Favoriten, especially in the Sonnwendviertel and along Triester Straße, are currently being completed. The beneficiaries of this development could be those who act today and take advantage of the last opportunities before the regulations change, as Ad-hoc-News reports.

New rentals are particularly popular in Favoriten at the moment. Here, rents of 14 to 16 euros net per square meter can be expected, while in inner-city locations the prices are even over 25 euros per square meter. Despite the wave of new construction, rents are continually rising. A look at the rental situation in Vienna shows that prices have risen by around 25 percent in the last two years, and a further increase of around 10 percent is expected for 2025, as BMWKMS emphasizes.

New challenges for landlords and tenants

The upcoming rental law reform will not only extend the duration of rental agreements, but will also tighten the regulations on the capping limit for rent increases. From 2026, an increase of up to 20 percent will only be permitted within three years and in regions with tense housing conditions, this limit can be reduced to 15 percent, as MIV reports. This brings new challenges and responsibilities for both tenants and landlords.

An important topic will also be the rent control, which has been extended until the end of 2029. In densely populated areas, landlords are only allowed to charge a maximum of 10 percent above the local comparative rent for new rentals. This also includes furnished rental properties, although a surcharge of 10 to 30 percent is permitted. In this way, tenants should be better protected and at the same time rent prices should be prevented from continuing to rise uncontrollably.

The future of living in Vienna

However, it remains to be seen how market conditions will develop over the next few years. Critics of the reform fear that the new regulation could lead to a shortage of housing supply, especially for small rental apartments. While the policy promises more security for tenants, landlords must be prepared to scrutinize future tenants more closely as the commitment to tenancy agreements is now longer. This could also have an impact on the availability of housing.

In summary, today is an important time for those interested in renting in Vienna. The supply of new housing is extensive, but with the new legislation coming into force the situation could change quickly. If you decide now, with a bit of luck you could get a good deal and at the same time benefit from the last old contracts before the new tenancy law takes full effect.