What are the price trends and forecasts in Austria right now? (2026)

If you are looking to buy property in Austria, understanding the current market trends is essential before making any decision.

This blog post covers the latest property prices in Austria, where they are headed in 2026 and beyond, and which neighborhoods are worth watching.

We update this article regularly so you always have fresh, reliable data on the Austrian real estate market.

And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Austria.

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Austria. If you’d like to learn more about us, you can check our presentation page.

What are the current property price trends in Austria as of 2026?

What is the average house price in Austria as of 2026?

As of early 2026, the estimated average house price in Austria sits around 300,000 euros (about 315,000 US dollars) for a typical single-family home, though this figure varies dramatically depending on whether you are buying in Vienna, a regional capital, or a rural area.

Looking at price per square meter, Austrian apartments average roughly 4,200 euros per square meter while houses come in at about 2,850 euros per square meter nationwide, which translates to approximately 4,400 dollars and 3,000 dollars respectively.

The realistic price range that covers roughly 80% of property purchases in Austria runs from about 180,000 euros to 550,000 euros (roughly 190,000 to 580,000 US dollars), with the lower end representing older apartments in outer districts or rural areas and the upper end capturing family homes in desirable city locations.

How much have property prices increased in Austria over the past 12 months?

Property prices in Austria have increased by approximately 2% to 3% over the past 12 months as of the first half of 2026, marking a clear shift from the slight declines seen between mid-2022 and late 2024.

The realistic range of price increases varies by property type, with new-build apartments rising around 3% to 4% while existing homes saw more modest gains of about 2% to 2.5% over the same period.

The single most significant factor driving this price movement in Austria has been the severe shortage of new housing supply, as building permits dropped to record lows in 2024 and construction completions fell from nearly 60,000 units in 2022 to just 34,000 in 2025.

Which neighborhoods have the fastest rising property prices in Austria as of 2026?

As of early 2026, the neighborhoods with the fastest rising property prices in Austria include Vienna's 10th district Favoriten (especially around Sonnwendviertel), the 22nd district Donaustadt (particularly Seestadt Aspern), and Graz's inner-adjacent districts of Lend and Gries.

These top-performing neighborhoods in Austria are seeing annual price growth of approximately 5% to 8%, which is notably higher than the national average of around 2% to 3%.

The main demand driver behind these rising prices is improved infrastructure and transit connections, as areas near new metro stations or redevelopment zones attract buyers who want urban convenience at more affordable prices than central locations.

By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Austria.

We have made this infographic to give you a quick and clear snapshot of the property market in Austria. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

Which property types are increasing faster in value in Austria as of 2026?

As of early 2026, energy-efficient new-build apartments are appreciating fastest in Austria, followed by terraced or row houses in good commuter locations, then older apartments requiring renovation, and finally large single-family houses with poor energy ratings at the bottom.

The top-performing property type in Austria, which is new-build apartments, is seeing annual appreciation of approximately 3% to 4%, outpacing the broader market by about one percentage point.

The main reason new-build apartments outperform in Austria is that buyers are highly sensitive to total monthly costs, and modern homes with good energy ratings mean lower utility bills and no surprise renovation expenses, which commands a premium of 25% to 35% over older stock.

Finally, if you're interested in a specific property type, you will find our latest analyses here:

• How much should you pay for a house in Austria?
• How much should you pay for lands in Austria?

What is driving property prices up or down in Austria as of 2026?

As of early 2026, the top three factors driving property prices in Austria are the severe shortage of new housing supply due to record-low building permits, improving financing conditions as interest rates have eased, and continued population growth especially through immigration to major cities.

The single factor with the strongest upward pressure on Austrian property prices is the construction shortage, as completions dropped from nearly 60,000 homes in 2022 to around 34,000 in 2025, creating a structural undersupply that supports prices even when demand softens.

If you want to understand these factors at a deeper level, you can read our latest property market analysis about Austria here.

What is the property price forecast for Austria in 2026?

How much are property prices expected to increase in Austria in 2026?

As of early 2026, property prices in Austria are expected to increase by approximately 2% to 4% over the full calendar year, with most analysts settling around a baseline forecast of 2.5%.

The realistic range of forecasts from different analysts spans from about 1.5% on the conservative end to 4% on the optimistic side, depending on assumptions about interest rates and construction activity.

The main assumption underlying most price increase forecasts for Austria is that housing supply will remain constrained because building permits and completions are at multi-year lows, while demand stays supported by falling mortgage rates and steady population growth.

We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Austria.

Which neighborhoods will see the highest price growth in Austria in 2026?

As of early 2026, the neighborhoods expected to see the highest price growth in Austria include Vienna's Favoriten (10th district) and Donaustadt (22nd district), Graz's Lend and Gries districts, Linz's Urfahr area, and Salzburg's Itzling neighborhood.

These top neighborhoods in Austria are projected to see price growth of approximately 4% to 7% in 2026, roughly double the national average.

The primary catalyst driving expected growth in these Austrian neighborhoods is the combination of relative affordability compared to prime areas, ongoing or planned infrastructure improvements, and strong rental demand that attracts both owner-occupiers and investors.

One emerging neighborhood in Austria that could surprise with higher-than-expected growth is Vienna's 11th district Simmering, where improving transit connections and lower entry prices are drawing price-sensitive buyers who might otherwise look further out.

By the way, we've written a blog article detailing what are the current best areas to invest in property in Austria.

What property types will appreciate the most in Austria in 2026?

As of early 2026, new-build apartments with strong energy efficiency ratings are expected to appreciate the most in Austria, followed by well-located terraced houses and then renovated older apartments.

The projected appreciation for new-build apartments in Austria in 2026 is approximately 3% to 5%, as limited new supply meets steady demand from buyers willing to pay more for modern standards.

The main demand trend driving appreciation for new-build apartments in Austria is the focus on total cost of ownership, where buyers factor in energy bills, maintenance, and potential future renovation requirements, making efficient new homes increasingly attractive.

The property type expected to underperform in Austria in 2026 is older, energy-inefficient houses requiring significant renovation, as buyers discount these properties heavily to account for rising construction costs and tightening energy regulations.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Austria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.

How will interest rates affect property prices in Austria in 2026?

As of early 2026, easing interest rates are providing a tailwind for Austrian property prices, as lower borrowing costs improve affordability and encourage more buyers to enter the market after sitting on the sidelines during the 2022 to 2024 rate hike cycle.

The ECB's deposit facility rate has come down from its 2023 peak, and Austrian mortgage rates for new loans have followed, with typical variable rates now in the 3.5% to 4.5% range compared to peaks above 4.5% in 2023.

A 1% change in mortgage interest rates in Austria typically shifts buying power by about 10% to 12%, meaning that lower rates allow buyers to afford more expensive properties or make the same property more accessible to a wider pool of buyers.

You can also read our latest update about mortgage and interest rates in Austria.

What are the biggest risks for property prices in Austria in 2026?

As of early 2026, the three biggest risks for property prices in Austria are an unexpected spike in interest rates that would squeeze affordability, a broader economic recession that would hit household incomes and buyer confidence, and regulatory tightening of mortgage lending standards that could restrict access to credit.

The single risk with the highest probability of materializing in Austria is an affordability squeeze if wage growth fails to keep pace with property prices, which would cap how much further prices can rise even in a supply-constrained market.

We actually cover all these risks and their likelihoods in our pack about the real estate market in Austria.

Is it a good time to buy a rental property in Austria in 2026?

As of early 2026, buying a rental property in Austria makes sense primarily for investors focused on long-term stability and capital preservation rather than quick returns, as gross yields remain modest at around 3% to 4% in prime locations but rental demand is exceptionally strong.

The strongest argument in favor of buying a rental property now in Austria is the extreme tightness of the rental market, with Vienna's vacancy rate at just 1% to 2% and asking rents rising about 6% annually, which virtually guarantees occupancy and supports steady income.

The strongest argument for waiting before buying a rental property in Austria is that property prices may still be adjusting, and buyers who wait could find better entry points if interest rates remain volatile or if more distressed sellers enter the market in 2026.

If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Austria.

You'll also find a dedicated document about this specific question in our pack about real estate in Austria.

Where will property prices be in 5 years in Austria?

What is the 5-year property price forecast for Austria as of 2026?

As of early 2026, property prices in Austria are expected to grow by approximately 15% to 25% cumulatively over the next five years, bringing values in 2031 meaningfully higher than today's levels.

The range of 5-year forecasts for Austrian property spans from about 12% on the conservative side (assuming affordability constraints and economic headwinds) to roughly 30% on the optimistic side (assuming strong wage growth and continued supply shortages).

This translates to a projected average annual appreciation rate of approximately 3% to 4.5% per year over the next five years in Austria, which is above inflation but well below the boom years of 2015 to 2021.

The key assumption most forecasters rely on for their 5-year Austrian property price predictions is that housing supply will remain structurally constrained because the construction sector cannot quickly recover from its current slump, keeping the market undersupplied relative to household formation.

Which areas in Austria will have the best price growth over the next 5 years?

The areas in Austria expected to have the best price growth over the next 5 years include Vienna's growth districts like Favoriten, Donaustadt, and Floridsdorf, Graz's transforming neighborhoods like Lend and Gries, and well-connected regional hubs along major rail corridors.

These top-performing areas in Austria are projected to see 5-year cumulative price growth of approximately 25% to 40%, outpacing the national average by 10 to 15 percentage points.

This differs from the shorter 2026 forecast mainly in magnitude rather than direction, as the same fundamentals that drive near-term growth (infrastructure, relative affordability, urban migration) compound over time to produce larger gains in these locations.

One currently undervalued area in Austria with the best potential for outperformance over 5 years is the corridor along the Semmering Base Tunnel route, where improved rail connectivity will effectively bring certain towns closer to Vienna and unlock demand from commuters seeking more space at lower prices.

What property type will give the best return in Austria over 5 years as of 2026?

As of early 2026, well-located energy-efficient apartments are expected to give the best total return over 5 years in Austria, combining solid capital appreciation with steady rental income and strong liquidity when it comes time to sell.

The projected 5-year total return for energy-efficient apartments in Austria is approximately 30% to 45%, comprising roughly 20% to 30% price appreciation plus 10% to 15% cumulative net rental yield.

The main structural trend favoring apartments over the next 5 years in Austria is the continued shift toward smaller household sizes and urban living, which increases demand for well-located units while larger houses in less accessible areas face weaker buyer pools.

For investors seeking the best balance of return and lower risk over 5 years in Austria, terraced or row houses in established commuter towns offer a middle ground with family-friendly appeal, lower per-unit prices than city apartments, and consistent rental demand from households priced out of central locations.

How will new infrastructure projects affect property prices in Austria over 5 years?

The top three major infrastructure projects expected to impact Austrian property prices over the next 5 years are the Vienna U2xU5 metro expansion adding 12 new stations, the Semmering Base Tunnel improving Vienna-to-south rail links, and continued tramway and cycling infrastructure upgrades in Graz and Linz.

Properties near completed infrastructure projects in Austria typically command a price premium of about 10% to 15% compared to similar properties without the improved connectivity, with the premium building gradually as completion dates approach.

The specific neighborhoods that will benefit most from these infrastructure developments in Austria include Vienna's 5th district Margareten (new U2 stations), Hernals in the 17th district (future U5 terminus), and towns along the southern rail corridor that gain commuting access to Vienna.

How will population growth and other factors impact property values in Austria in 5 years?

Austria's population is projected to grow by approximately 0.4% to 0.6% annually over the next 5 years, driven mainly by immigration, which adds consistent pressure to housing demand especially in Vienna, Graz, and Salzburg where most newcomers settle.

The demographic shift with the strongest influence on Austrian property demand is the continued growth in one and two-person households, which increases the total number of housing units needed even when overall population growth is modest.

Migration patterns, both from other EU countries and from outside Europe, are expected to concentrate housing demand in Austria's major urban centers, supporting price growth in cities while leaving some rural areas with flat or declining demand.

The property types and areas that will benefit most from these demographic trends in Austria are compact apartments in Vienna and regional capitals, as well as family-sized units in well-connected suburban areas that offer more space at reasonable prices for growing households.

We made this infographic to show you how property prices in Austria compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

What is the 10 year property price outlook in Austria?

What is the 10-year property price prediction for Austria as of 2026?

As of early 2026, property prices in Austria are expected to grow by approximately 30% to 50% cumulatively over the next 10 years, reflecting steady compounding rather than dramatic booms or busts.

The range of 10-year forecasts for Austria spans from about 25% on the conservative end (assuming periodic corrections and affordability constraints) to roughly 60% on the optimistic side (assuming sustained supply shortages and strong economic growth).

This translates to a projected average annual appreciation rate of approximately 2.7% to 4% per year over the next decade in Austria, which would keep property as a reasonable inflation hedge without producing windfall gains.

The biggest uncertainty factor in making 10-year property price predictions for Austria is the future path of interest rates and housing policy, as changes in either could meaningfully shift the supply-demand balance in ways that are difficult to forecast today.

What long-term economic factors will shape property prices in Austria?

The top three long-term economic factors that will shape property prices in Austria over the next decade are the euro area interest rate regime set by the ECB, the capacity of the construction sector to deliver new housing supply, and the pace of urbanization driven by job creation in major cities.

The single long-term economic factor with the most positive impact on Austrian property values is likely to be sustained undersupply of housing, as the construction industry struggles to rebuild capacity after the 2022 to 2025 downturn and demographic demand continues to exceed new completions.

The single long-term economic factor posing the greatest structural risk to Austrian property values is an affordability crisis, where prices rise faster than incomes for an extended period and eventually force a correction as the pool of qualified buyers shrinks.

You'll also find a much more detailed analysis in our pack about real estate in Austria.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about Austria, we always rely on the strongest methodology we can … and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.

Source	Why It's Authoritative	How We Used It
Statistics Austria - Immobilien-Durchschnittspreise	Austria's official statistics office publishing transaction-based national benchmarks.	We used it as our price level anchor for apartments and houses across Austria. We scaled values forward using the official house price index trend.
Statistics Austria - House Price Index (HPI)	Official index built from land register purchase contracts.	We used it to quantify national price changes and describe recent momentum. We also used it to distinguish new versus existing property performance.
OeNB - Residential Property Price Index (RPPI)	Austrian central bank data used for housing market monitoring.	We cross-checked price trends against the HPI and used it to validate our 2026 growth estimates.
OeNB - Financial Stability Report 49	Central bank's flagship assessment including housing and mortgage risk.	We used it to explain what drives prices and to frame downside risks. We drew on credit and affordability analysis throughout.
OeNB - Lending Rates (New Business)	Official statistical table for Austrian bank lending rates.	We used it to discuss mortgage rate changes and their impact on demand. We referenced it for interest rate sensitivity analysis.
OeNB - Bank Lending Survey	Official publication summarizing banks' credit standards and demand.	We used it to explain why buyer demand picked up in 2025. We also used it to justify our modest upturn baseline for 2026.
ECB - Key Interest Rates	Primary source for euro area policy rates.	We used it to set the macro backdrop for Austria as a euro area country. We referenced it for explaining the rates channel into mortgages.
Statistics Austria - Building Permits	Official release quantifying new housing supply approvals.	We used it to show supply is constrained, which supports prices even when demand cools. We referenced it extensively for supply-side analysis.
Statistics Austria - Building Completions	Official series for completed dwellings entering the market.	We used it to complement permits data and explain why shortages persist. We referenced the decline from 60,000 to 34,000 units.
Statistics Austria - Population Projections	Official demographic forecast used in public planning.	We used it to discuss long-run housing demand and regional pressure points. We referenced it for our 5 and 10-year outlook assumptions.
CBRE - Living Market Report Austria 2025	Major global real estate consultancy with established research processes.	We used it for city-level insights on where shortages are most visible. We referenced it for neighborhood heat map logic.
EHL - First Vienna Residential Market Report 2025	Long-running, data-driven Vienna market report by local professionals.	We used it to explain what makes Vienna unique, including tenure structure and submarket dynamics. We grounded Vienna neighborhood examples here.
WKO - Immobilienpreisspiegel 2025	Produced by Austria's Economic Chamber using reported transaction results.	We used it to triangulate price levels by property type. We sense-checked regional differences alongside Statistics Austria.
Wiener Linien - U2xU5 Expansion	Official project page of Vienna's public transport operator.	We used it to explain how transport capacity shifts neighborhood demand. We referenced it as a concrete example of infrastructure premium.
City of Vienna - U2xU5 Press Release	Official municipal communication with project milestone specifics.	We used it to keep infrastructure timelines realistic. We avoided hand-wavy claims by referencing actual expected completion dates.
OBB Infrastruktur - Semmering Base Tunnel	Official page of Austria's federal rail infrastructure manager.	We used it to show how major rail upgrades can reprice accessibility corridors. We motivated why some regional hubs can outperform medium-term.
Raiffeisen Research (via The Local Austria)	Analysis from Austria's largest banking group research team.	We used their 2.5% price growth forecast for 2026 as a key benchmark. We referenced their supply shortage analysis extensively.
Global Property Guide - Austria	International property research platform with historical data.	We used it to cross-reference long-term price trends and economic context. We validated our historical cycle analysis against their data.