Austria's real estate market is changing: prices rise and fall!

Austria's real estate market is changing: prices rise and fall!

Wien, Österreich - The real estate market in Austria currently shows a mixed picture, shaped by regional differences and the challenges of recent years. According to a report by Krone , increased interest rates have significantly burdened the industry in the past two years. In particular, buyers with financing needs were faced with restrictions, which led to a lower investment ability. Despite these turbulence, a increasing demand for new apartments is observed in Vienna. The decline in completions last year has led to a greater interest.

In Vorarlberg, on the other hand, an opposite trend can be observed: Real estate prices have dropped noticeably compared to the previous year. The prices increased in other federal states, but growth was mostly limited, especially if inflation is taken into account. However, the forecasts indicate that the market could stabilize and prices could increase in the coming years. Therefore, it could currently be a favorable time to invest in real estate.

recovery of the market and price forecasts

Another report by lives shows that the Austrian real estate market shows signs of relaxation after difficult times. The Remax index, which evaluated 600 brokers surveyed, indicates an expected upward movement when supplying, demand and prices. Accordingly, supply and demand should increase by 5.4% or 5.2%, while the price increases remain limited and only 0.3%.

The price dynamics have apparently changed; Extreme price increases were slowed down and the price level stabilizes. Single -family houses become 0.1% more expensive, while rental apartments in urban locations increase by up to 5.2% and 2.4% in rural communities. Interestingly, the increased range of buying objects offers buyers more selection and room for negotiation, while the rental offer, especially in metropolitan centers, shrinks. Here the demand exceeds the supply.

numbers and trends in the rental market

Overall, the number of rental objects offered is 140,300 units, which corresponds to a decline of more than 13% compared to the previous year. The market for rental apartments has even halved in the past two and a half years. In addition, a total of 98,500 real estate transactions were recorded in 2024, which is 9.8% below the previous year and 40% below the value of 2021.

The price development varies greatly depending on the region. In Vienna, Tyrol, Styria, Lower Austria and Burgenland, price increases in rent and property can be expected. In contrast, there are declines in Salzburg, Vorarlberg, Upper Austria and Carinthia, whereby Carinthia particularly stands out with a minus of 4.6% for condominiums and 4.7% for single -family houses. Furthermore, it is predicted that commercial properties will be subject to cheaper prices in 2025, with a decrease of around 3.9% to 5.5%.