The suburbs around Vienna: the boom in rural residential areas continues!

The suburbs around Vienna: the boom in rural residential areas continues!

The suburbs around Vienna have developed into a real magnet for city dwellers who are looking for more space, peace and quiet and affordable living space. Loud vienna.at Many people are drawn from the hustle and bustle of the city to the charming rural communities, resulting in a notable increase in the number of residents. Newly established residential areas and a flourishing demand for single-family and terraced houses are fueling this trend.

Popular regions for migration include Mödling, Klosterneuburg, Korneuburg, Baden and Tulln. But smaller communities along the railway lines to the south, west and northeast are also experiencing a strong influx. Many new development areas and infrastructure projects are practically sprouting from the ground. Investments in new kindergartens, schools and local suppliers contribute to the quality of life in these regions, which are characterized by green spaces and leisure opportunities.

Increasing demand despite challenges

But all of this has its price. The high real estate prices in Vienna are driving demand in the suburbs, which is causing real estate prices to rise here too. The situation has stabilized temporarily, however the press reported, but buyers are holding back and weighing up how interest rates and market price developments will develop. Particularly in the high-priced segment, there are buyers who estimate price differences of up to 30% between the city and the surrounding area. The uncertainty surrounding rising interest rates and stricter financing rules excludes many potential buyers, such as young doctors or lawyers.

A decline in real estate transactions was noted for 2023, with around 40% fewer purchases of single-family homes and apartments compared to 2022. Smaller developers in the suburbs are particularly feeling the effects of market developments, while larger developers are struggling with interest rates four times higher. This dynamic leads buyers to compare prices in different regions, giving a boost to some places like Baden, where the square meter of land is offered for 1,100 euros.

Purchasing power is changing

However, there is a positive development in terms of purchasing power Regiodata expected to increase by almost 5% in 2025. Purchasing power in Austria has generally developed positively over the last ten years, and while large cities are stagnating, rural districts are showing high growth. Particularly noteworthy here are the regions in the suburbs, which are in the solid midfield, while Vienna's city center falls relatively behind.

This combination of growing incomes and an increased search for living space in attractive rural areas could make the suburbs one of the most dynamic living areas in Austria in the long term. Despite the challenges associated with rising prices and overstretched infrastructure, the demand for housing in the rural communities around Vienna appears to be unbroken.