Real Estate Boon 2025: Vienna and Styria are experiencing price increases!

Real Estate Boon 2025: Vienna and Styria are experiencing price increases!

The Austrian real estate market will show positive development in 2025, as vienna.at reports. In the first half of the year, around 1.16 billion euros were invested in real estate, which represents a significant increase compared to the previous year. The demand for existing properties in Vienna is particularly noticeable, while the supply of residential properties under development or construction has declined.

Research shows that residential real estate is the largest asset class at 57 percent. In the second quarter of 2025, the share of investors increased to 68 percent, indicating high interest in this market segment. The shortage of residential real estate has led to an increase in prices, which makes the decision to buy apartments in the federal states more attractive, as the returns there are higher than in Vienna.

Price development and forecasts

In addition, the real estate market in Austria shows an upward trend in prices in the first half of 2025, according to wirtschafts-nachrichten.at. On average, prices rose by 0.3 percent. In Vienna, home ownership rose by 0.8 percent. An average price increase of 0.5 percent is forecast for the whole of 2025, while an increase of around 3 percent per year is expected from 2026.

The average asking price for condominiums is currently 5,951 euros per square meter, which corresponds to an increase of 4 percent compared to the previous year. For single-family homes, the average price is 4,041 euros per square meter, which means an increase of 6 percent. Buyer interest has increased sharply, particularly in Styria (+37 percent) and Tyrol (+25 percent).

Market analysis and future developments

The analysis is based on around 180,000 advertisements and shows that prices for apartments in Styria are 4,331 euros per square meter, while in Tyrol they are 7,000 euros per square meter. However, the most recent price increases are not yet reflected in the land register data, which could indicate future price changes. In Vienna the average price for a house is almost 850,000 euros, in Burgenland it is around 317,000 euros, according to information from wirtschafts-nachrichten.at.

The lack of “core properties” and the increasing demand for high-quality existing properties with a volume of 20 to 50 million euros characterize the market. While offices and retail properties are in less demand, demand for hotels remains stable, although they only account for 14 percent of transaction volume. According to immopreise.at, investors must expect rising real estate prices in the long term.

Overall, the market development, both in terms of prices and demand, is a sign of the ongoing stability and growth of the Austrian real estate market. The combination of moderate interest rates and economic recovery could lead to slightly lower yields in the future, which will further influence the market.