The residential real estate market in Vienna shows mixed trends: in general, apartment prices are declining, but there is a steady increase in high-end neighborhoods. At the same time, demand, especially for rentals, remains high and new construction is declining.In the fourth quarter of 2024, the overall price index for Austria decreased by 1.08% and for Vienna by 2.08% compared to the same period in 2023 (-3.91% adjusted for inflation). Meanwhile, the quarterly change in Vienna is minimal, a barely noticeable decline (about -0.55% in real terms). But in the premium districts (Innenstadt, Döbling), price increases of up to +5-15% over the year. Prices by districtThe average price in Vienna in June 2025 is around €5,500/m²Innenstadt (1st district): around €25,000/m² (up +29.8 %)Suburbs (Floridsdorf, Donaustadt): €3,500-5,000/m²So the range (Via Investropa): €3,600/m² (suburbs) – €27,000/m² (center). Buy or rent?Average 1-bedroom rent:In the center – €1,000-1,100/month,In the suburbs – €700-1,000/monthGross rental yields hold at 3-4%, higher in the center for short-term accommodation (Airbnb up to €91/day, occupancy ~77%). Loan rate: around 3.2-3.9% (10-year). One-off purchase costs (notary, fees) – around 9-13% of the value.At the same time, only around 1,800 new rental apartments are expected to be built in 2025 – 60% less than in 2024. New mortgage lending is also down: ~€11.3bn in 2024 vs. €23.2bn in 2022. Housing construction fell by 4.9% in 2024 (based on pre Q3 data). Until 2026, experts expect moderate price growth due to improving economic situation and overcoming the downturn in construction. The rental market will grow: expect yields of 3-4%, especially for short-term rentals. A persistent housing shortage, strong migration inflows and city policies are all creating long-term demand.
