Viennese rental prices will reach record highs in 2025 – living will be expensive!

Viennese rental prices will reach record highs in 2025 – living will be expensive!

The Vienna rental market reached record prices in 2025. How ad hoc news reported, the asking rents in the city are now an average of 21 euros per square meter. This represents an increase of around 10 percent compared to the previous year. The situation is particularly alarming for many households, which now have to spend more than 40 percent of their disposable income on housing.

Demand for apartments remains high, while new building completions have fallen dramatically. The number of new large-volume apartments expected in 2025 is just 8,800 - a decline of 20 to 25 percent. These developments are further hindered by rising construction and financing costs, which further exacerbates the situation on the housing market. Prices have risen sharply, particularly in districts that were once considered cheap, such as Favoriten and Donaustadt, while in the inner city prices have stagnated above 27 euros per square meter.

Market dynamics and financing

The market development also shows the effects of the KIM regulation, which expires in mid-2025. This has only slightly stimulated the property market, like Kroy Real Estate determines. Despite the political discussions about rent controls and vacancy taxes, which have had little impact on market dynamics, 'quality inflation' is being observed: old apartments are increasingly being rented out without renovation.

A positive turn could come from the ECB's interest rate cuts, which began in 2024. These perks make loans more attractive to buyers and could bring more movement to the market in the future. Despite all the challenges, including renovation backlogs in old buildings - where Vienna has the highest rate of unrenovated properties - there are opportunities in the middle price segment for buyers who act early.

Shared rooms and rental agreements