Austria’s residential real estate market has begun to grow again after a prolonged period of falling prices, according to data from Statistik Austria.
According to the statistical office, in 2025, prices for houses and apartments in Austria rose by an average of 2.6% after falling by 2.6% in 2024 and by 2.3% in 2023. Thus, the market showed positive annual growth for the first time in two years.
The recovery accelerated in the second half of 2025. In the fourth quarter, housing prices rose by 3.5% year-over-year and by 0.8% compared to the previous quarter. New housing prices increased by 3.1% over the year, while existing housing prices rose by 3.6%.
The return to growth is linked to the gradual stabilization of the mortgage market, reduced uncertainty following a period of high interest rates, and a decline in new construction supply. After a sharp rise in borrowing costs in 2022–2024, some buyers postponed their purchases, but demand began to gradually return in 2025.
However, the recovery remains highly uneven. According to Global Property Guide estimates, prices continued to decline in some regions, particularly in expensive Alpine and metropolitan areas. In Vienna, the average property price in 2025 was estimated at approximately €779,000, but the annual trend was negative—about -6.6%. In Tyrol, the decline was estimated at -13.7%, and in Salzburg, at -9.1%. At the same time, Carinthia, Styria, and Upper Austria showed growth.
For buyers, this means that the Austrian market is no longer in a phase of widespread decline, but has not yet returned to its previous overheated growth. Location, property quality, energy efficiency, and access to financing have become more important than the expectation of automatic real estate price increases.
