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The new construction market is booming: Styria is overtaking Vienna when it comes to retirement apartments
New construction in Austria shows dynamic developments: rising prices and transactions, regional differences in demand and retirement apartments.
The new construction market is booming: Styria is overtaking Vienna when it comes to retirement apartments
The Austrian new construction sector is currently quite dynamic. According to a report by Immo United, some federal states are recording a remarkable development in terms of prices and demand, while declines can be observed in Lower Austria and Carinthia, for example. The average price per square meter for new properties rose by 3.43% compared to the previous year, with Styria taking the lead with an increase of 8.97%. Tyrol follows closely with 7.84% and Burgenland with 6.24%. There are moderate increases of around 3% each in Vienna and Upper Austria, while Salzburg remains stable, with an increase of 1.11%.
The trend is particularly noticeable in retirement apartments. The share of these properties in total transactions rose to around 20% in Austria in 2025, an increase that is particularly noticeable in Styria at 40.7% and Tyrol at around 7%. Vienna, on the other hand, shows a modest increase of only 0.32%. In some other federal states such as Burgenland and Vorarlberg, however, declines of 13.53% and 4.66% respectively were recorded.
Market and transactions in focus
The transaction volume in the new construction segment is impressive, with an increase of around 10%, while the number of transactions even increased by 11.1%. Salzburg leads the ranking with an increase of 36.53% and Vienna with 33.33%. Styria follows these figures with an increase of 11.8%. However, there are significant declines in Burgenland, Tyrol and Lower Austria, which have to contend with declines of up to over 36%.
The quality of the new buildings is also worth mentioning. Construction output is showing a continuous decline: by 2026, the number of new apartments completed is expected to fall from 46,000 in 2022 to just 25,000. Nevertheless, the average living space increases to 70 square meters, and 96% of new apartments offer around 11 square meters of open space. There is a higher proportion of three-room apartments, particularly in rural areas, while one to two-room apartments dominate in urban regions.
The challenges in the real estate market
Industry experts emphasize the need for political measures to stimulate construction activity and create affordable housing. Nonprofit developers try to ensure stability, particularly in the area of affordable housing. Two thirds of the construction work is provided by the commercial real estate industry, while the remaining part is the responsibility of non-profit construction associations.
Overall, there is a mixed picture on the Austrian real estate market. In conclusion, investors are increasingly eyeing urban centers and tourist-attractive regions, which could have a significant impact on future market development. The dynamics in the area of retirement apartments could play a decisive role here: the trend has increased sharply, especially in Styria, while Vienna has remained stable.
The press reports that the advance of retirement apartments in Styria is obvious, while the Chamber of Commerce points out the need for political action to revitalize the market. Accordingly, we still have some options when it comes to future development in Vienna and other federal states.