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Rents in Vienna are skyrocketing by 9% – purchase prices are stable!
Vienna will experience rent increases in 2025 due to a decline in new construction. Purchase prices stabilize; demand remains high.
Rents in Vienna are skyrocketing by 9% – purchase prices are stable!
In the Austrian capital, there is an exciting interaction between rising rental prices and stable purchase prices on the real estate market. The latest data shows that asking rents averaged 20.42 euros per square meter in the first quarter of 2025, an increase of 9% compared to the previous year. This highlights the tense conditions on the rental market, which are caused by a dramatic decline in new construction and high demand. That reports Ad hoc news.
As a result, purchase prices have remained stable. This is particularly notable since the number of transactions increased significantly in the first half of 2025. The reasons for this stability are the low interest rate phase and the key interest rate cuts by the European Central Bank, which were decided at the end of 2024 and were able to bring an upswing to the property market. A recovery in the buying segment is in sight, also because many households who cannot afford their own home are continuing to heat up the rental market.
Rental market under pressure
It is clear that the rental market is under great pressure. Not only is there a lack of new construction, construction costs have also increased and strict credit standards are making it difficult for many to enter the property market. Forecasts show that only around 9,400 apartments will be completed in Vienna in 2025, which is more than worrying given the high demand. The KIM regulation, which expired on June 30, 2025, gave banks a little more leeway in granting loans, but may also not provide the necessary solutions.
At the same time, the city government is launching measures in the form of a housing construction package worth two billion euros, the effects of which will only be felt with a delay. Industry representatives are calling for more incentives for residential construction and simplified approval procedures. Although social housing creates a certain degree of stability for those on a budget, it remains only part of the solution.
A look at the price development
The price level in the Vienna real estate market also remains interesting in the context of the current macroeconomic situation. The average price per square meter for condominiums was 6,100 euros in the second quarter of 2024, a slight decrease compared to the previous year. Especially in the prestigious districts such as the Innere Stadt, Hietzing and Döbling, prices remain consistently high and range between 6,300 and 22,500 euros per square meter Engel & Völkers reported.
Single- and two-family homes also show significant price differences, with the average purchase price in Q2 2024 being around 750,000 euros. Once again it is clear that the luxury segment is somewhat more robust despite adverse economic circumstances and is recording price increases in high-quality locations.
In summary, the real estate market in Vienna shows both light and shadow. While purchase prices are stabilizing and even rising in some areas, the rental market remains tense and poses numerous puzzles that urgently require solutions. There is some potential for improving the situation, but it remains to be seen how effective the planned measures will be in improving the situation for all those affected in the long term.