Vienna real estate market is recovering: new building prices are rising!

Vienna real estate market is recovering: new building prices are rising!

A lot is happening in local politics and society, but in this issue we take a look at the Vienna real estate market, which is recovering after a long low point. How ad hoc news reported that transactions in top locations in the city are once again showing an upward trend. After two years of fewer sales, the roadmap is clear: demand remains high while supply is becoming increasingly scarce.

A key reason for the increasing demand is the city's continued growth. Vienna remains a popular place to live when looking for real estate. Nevertheless, the number of new apartments completed will fall to a ten-year low in 2025 with only around 9,400 new units, which has to do with rising construction costs, expensive financing and material shortages. Experts estimate that a noticeable recovery could not occur until 2026, and even then at a lower level than usual.

Price movements in the real estate market

The prices for new apartments remain stable, but show a slight upward trend. This entails the following price ranges depending on the district:

• Zentrale Lagen: 8.000 bis 12.000 Euro/m²
• Beliebte Wohnbezirke: 6.000 bis 8.500 Euro/m²
• Außenbezirke: 4.000 bis 6.500 Euro/m²

Interestingly, the market for existing properties remains stagnant in some areas, while it is flourishing in the most sought-after locations. According to an analysis by vienna.at In the first half of 2025, prices rose by an average of 1.1% for new apartments and 3.8% for existing properties. However, these stable or slightly increasing prices contrast with a 5% decline in transactions in the Austrian real estate market as a whole.

However, Vienna is seeing a 17% increase in transactions, making the city a desirable destination for investors and homeowners. Vienna is increasingly seen as a safe haven in real estate, especially in a tight rental market where net rents are 5.5% above inflation. High interest rates and building regulations are slowing development in other federal states, but Vienna benefits from its stability.

Outlook and trends

As the market changes from a buyer's to a seller's market, the situation will be crucial for pricing in the next few years. According to the forecast, a price increase of 3 to 5 percent is expected in most segments. The demand for compact two- to three-room apartments with private open spaces remains high. At the same time, property developers are increasingly relying on sustainable construction methods to increase the value of their properties.

In this context, the lull in new construction is also a potential stress factor for the rental market, as many prospective buyers may be dependent on rental apartments. It will be all the more important to emphasize quality and energy efficiency as key criteria in new building projects. In short: Well-located, high-quality new apartments could rise moderately in price while the rental market remains under pressure.

It remains to be seen how the various factors will affect the Vienna real estate market. The fact is: the development of prices and the constant demand paint a picture that brings with it both opportunities and challenges.