Vienna real estate market is recovering: sales figures are booming!

Vienna real estate market is recovering: sales figures are booming!

The Vienna housing market is currently showing the first signs of a noticeable recovery. A look at the newly published figures reveals: In the first half of 2025, the number of transactions rose by an impressive 39 percent. This increase means that the transaction volume climbed to 1.35 billion euros, which corresponds to an increase of 45 percent compared to the previous year. 3,645 apartments were sold in the first six months, which is a really encouraging development for the real estate industry. Börse Express reports that the improved financing conditions and the tight supply in particular are favoring price increases.

An important factor in this context are the interest rate cuts by the European Central Bank, which have been in effect since the end of 2024. These have reduced borrowing costs and are contributing to the positive mood. The expiry of the KIM regulation in the summer, which included strict credit rules, also ensures more flexibility in lending by banks. According to Raiffeisen Immobilien, this circumstance gave a psychologically positive impulse to the market, which is also seen as a significant turning point after a two-year correction phase.

New construction prices and market segmentation

A clear trend can be seen with regard to new building prices: due to a decline in construction activity, they are now rising. Only around 9,400 completed residential units are expected in Vienna in 2025, which could further increase the pressure on prices. What is particularly noticeable is the increase in prices for first-time apartments, which varies depending on the district. In Wieden, prices rose by 11.1 percent, while new buildings became more expensive by an average of 10.2 percent. In general, price increases for new construction are between 6 and 9 percent. IMMOkalkulator has provided detailed analyzes of rental and purchase prices and shows possible trends.

The data from the market analysis also reveals different developments between old rental apartments and the newer properties. Rental prices in the inner districts rose by around 10 percent, while purchase prices in this segment fell by around 10 percent in nominal terms. In the outer districts, an increase in rental prices of around 5 percent was observed, while purchase prices fell by around 20 percent. Proven properties, particularly in more attractive locations, are likely to continue to be highlights of the market in the future.

Demographic trends and outlook

What will happen in the future? Experts predict that the positive trend will continue; In particular, settlement by a continuously growing population could maintain pressure on the market. According to Raiffeisen Research, there could be annual price increases of around 3 percent from 2026, although the completion of new apartments could increase slightly. Completions are expected to recover to around 10,700 units in 2026, but overall supply remains the bottleneck.

Overall, the housing market in Vienna is an interesting but also challenging landscape. With over 976,000 inhabited apartments, which can be found primarily in Favoriten, Donaustadt and Floridsdorf, the majority remain rental apartments. The ownership rate was 19.8 percent in 2023 - a value that can be attributed to the historic social housing. Statista shows that the high proportion of single-person households and the comparatively small living space are also relevant aspects that shape the market.

In conclusion, Viennese residential real estate is developing in an exciting, albeit differentiated, environment. Supply remains tight and the pressure to act will remain high, which is important for both buyers and tenants. It remains to be seen how developments in the political and economic spheres will affect this.