Rent prices in Vienna are exploding: 10 percent increase in one year!

Rent prices in Vienna are exploding: 10 percent increase in one year!

The Viennese housing market is still in a tense situation - rental prices are literally skyrocketing. With an increase of 10 percent within a single year, the average price per square meter now reaches 21 euros. For a typical 70 square meter apartment, the monthly rent is a whopping 1,471 euros. Vienna and Upper Austria are the front runners when it comes to rent increases throughout Austria. The high demand is met by a sharply shrinking supply of rental apartments, which is further inflaming the situation ad hoc news reported.

A look at new construction activity shows a dramatic decline: the number of new residential units completed in Vienna shrank by 42 percent in 2025. With only 9,400 units, the construction figures are in stark contrast to the over 16,000 apartments that were completed in the peak year of 2023. The reasons for this decline are rising construction costs, high land prices, a strict KIM regulation and unwanted project postponements as well as construction bankruptcies. Young families often have no access to property and instead increasingly push into the already overloaded rental market.

Trend reversal in real estate purchases?

Although rental prices are skyrocketing, land registry data as of November 21, 2025 shows investors are showing interest in the markets. Vienna.at further explains that the number of new construction projects remains low despite falling interest rates. Political measures to regulate rental prices are still up in the air. There is great uncertainty among project developers, which leads to a hesitant attitude among institutional investors. Many projects that were originally planned as rental properties are now being sold.

While the demand for rental apartments remains high, the supply is far from sufficient. Apartments are often reassigned immediately after the previous tenants move out, which further increases the pressure on rental prices. In sought-after locations, interested parties should make decisions quickly as the scope for negotiation has drastically shrunk. In the first quarter of 2025, real estate consultant EHL observed a rent increase of 5.4 percent, which is a sign of the tense conditions.

Prospects for 2026 and beyond

The forecasts for the coming year are not very optimistic. Completions are expected to remain at low levels, meaning there is little sign of relief for tenants. Just like them Reports from Otto Immobilien show, the housing market could only stabilize from 2027. Today's situation makes it particularly difficult for young people and families to find suitable housing in the capital.

With declining supply and rising prices at the same time, the Vienna housing market is proving to be a real dilemma for many. It remains to be seen whether political measures will be taken to improve the situation and ease the pressure on tenants. The developments of the next few years could be crucial for the quality of life in our city.