Vienna's apartment building market in transition: stabilization or illusion?

Vienna's apartment building market in transition: stabilization or illusion?

An important press conference will take place on June 25, 2025 to update the apartment building market report and developments in Vienna's existing city. Loud OTS The event will take place at 10:00 a.m. in Hall 2 of the Haus der Wiener Wirtschaft, Straße der Wiener Wirtschaft 1, 1020 Vienna. The focus of the discussion is changes in the apartment building market as well as sustainable development and future viability of living space.

Exciting rounds of discussions are planned with experts such as Michael Pisecky and Nicole Fürntrath, both chairmen of the Vienna specialist group of real estate and asset trustees, as well as Philipp Maisel, team leader for apartment buildings and investments at Otto Immobilien. Those interested can register by email at immo@wkw.at or take part online via Zoom. Mag. Rudolf North, MBA, is available for further information.

Current developments in the apartment building market

The apartment building market in Vienna is showing signs of stabilization, according to a report by Real estate investment emerges. In the first half of 2024, a transaction volume of 367 million euros was recorded in 122 transactions. This corresponds to the level of the previous year and marks a certain recovery in the market, although volumes are still below the values ​​of the zero interest phase.

Prices continue to decline in peripheral locations, while there is a slight increase in prices in sought-after districts. Philipp Maisel from Otto Immobilien is optimistic about the positive developments in good locations, especially due to a doubling of the transaction volume in districts 3, 6, 14, 15, 17 and 18. Interestingly, there have been no sales of apartment buildings in the 1st district since Otto's analyzes began.

Market analysis and price trends

The price trends show a differentiated development: minimum prices in some districts have fallen, while maximum prices in central locations have increased slightly. The average price per square meter is 3,266 euros and corresponds to the level of 2020. Investors are increasingly focusing on long-term returns, while short-term investors are withdrawing.

Another highlight is the market shakeout, in which investors with strong equity capital are increasingly getting involved again, especially in renovated and well-rented apartment buildings. The inventory of Viennese Wilhelminian style apartment buildings shows that 2,034 buildings have been lost in recent years, which corresponds to a decline of around 13% since 2009. The reasons for this drastic decline are often conversion to residential property or conversion to hotels.

In total, there have been 10,841 changes in ownership of apartment buildings in the last 15 years with a transaction volume of 21.6 billion euros. The average price per square meter during this period was 3,507 euros, and the search for dream properties is increasingly supported by the ability to choose from a portfolio of over 2,000 unlisted offers, such as Otto Real Estate reported.

These developments point to a dynamic market that is showing signs of stabilization despite challenges. The upcoming event on June 25th will certainly provide further insights and predictions.