Viennese rent over 20 euros: apartments become luxury goods!

Viennese rent over 20 euros: apartments become luxury goods!

The rental prices in Vienna have achieved a new record. Current figures show that the offer rents in September20.42 euros per square meterhave increased, which represents an increase ofnine percentcorresponds to the previous year. This means that rents in Vienna are higher than ever, and those seeking apartments have to go with prices from over1,200 eurosfor one60-square-meter apartmentdeal with. It is particularly noteworthy that the average rent, including operating costs, is now the first time10 eurosper square meter exceeds, as Statistics Austria states.

What led to this increase? "High demand meets a shrinking offer," the situation describes the problems on the housing market. On top of that, a decline in new buildings of up to50 percentforecast. For 2025, the number of completions of new apartments will be opened9,400 to 11,000estimated what a third is less than in 2023. Builders are increasingly doing it to build profitable condominiums instead of offering rental objects. This means that the available rental apartments continue to decrease.

Decline in the rental market

The situation on the rental market could still tighten. Forecasts indicate that the decline on the free rental market50 percentcould be. This is done in an environment in which the construction costs have almost been50 percenthave increased and the number of building permits in 2024 has fallen to the lowest level in a decade. The federal government has the goal of400,000Completions per year, however, have failed for years.

The location is not only tense in Austria. In Germany, too, rents rise significantly, which underlines the tense living situation in the entire roof region. This is how the Tagesschau registers an increase in rents around4.7 percentin the fourth quarter of 2024, especially in cities like Berlin, where the rental prices are around8.5 percentclimb. High demand for rental apartments and a lack of new buildings are also prevalent problems here.

Living as luxury goods

For many apartment seekers, living is increasingly becoming a luxury goods. In previous years, more and more people have come across the price peaks, which means that every third tenant budget is overloaded with housing costs. Homes become more expensive - the prices for apartments and houses rose in the first half of 20252.8 percentrespectively3.6 percentFor new objects. In view of these price increases, buyers who are looking for a property must act extremely carefully and pay attention to their budget.

The ongoing price increases and the steadily decreased new building make it clear that the living situation in Vienna and in many other cities remains a challenge. The rising rents and purchase prices are like a sword of Damocles over many heads and clearly show that there is a need for action.

So the question remains how the situation on the housing market will develop. Will political interventions follow or will the development continue as before? It is clear that apartment seekers have to expect intensive competition and persistently high costs.