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Everything you need to know before buying real estate is included in our Austria Property Pack
Thinking about buying a 3-bedroom apartment in Vienna? It’s a great city, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other regions like Salzburg or Innsbruck where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Austria Property Pack.
Will property prices increase in Austria in 2025?
Yes, property prices in Austria are expected to rise in 2025, driven by a combination of strong demand and limited housing supply.
Backed by our fresh, in-depth market analysis, we’re confident that Austria remains an attractive market for both domestic and international investors.
While there are some economic challenges like inflation and potential interest rate hikes, the primary factors driving Austria's property market growth are expected to persist.
The demand for housing, particularly in urban areas like Vienna, continues to outpace supply, making significant price declines unlikely. Additionally, Austria's stable economy and high quality of life continue to attract buyers from around the world.
Signals pointing to a property price increase in Austria
Here are some factors suggesting prices could increase:
The ongoing shortage of new housing developments, especially in major cities, is expected to continue into 2025. This limited supply, coupled with steady demand, is likely to drive property prices upward.
Austria's strong economic performance and low unemployment rates contribute to a stable housing market, encouraging both domestic and foreign investment in real estate.
Government initiatives aimed at promoting sustainable and energy-efficient housing are expected to increase the value of properties that meet these criteria, thereby pushing overall market prices higher.
Austria's appeal as a safe and stable country with a high quality of life continues to attract international buyers, particularly from neighboring countries, further boosting demand for property.
The trend of urbanization and the desire for city living, especially among younger generations, is expected to sustain high demand for properties in urban centers, leading to price increases.
Austria's robust tourism industry, particularly in regions like Tyrol and Salzburg, continues to drive demand for vacation homes and investment properties, supporting price growth in these areas.
The anticipated stabilization of interest rates in 2025 could make financing more accessible, encouraging more buyers to enter the market and supporting price increases.
Signals pointing to a property price decrease in Austria
Here are some factors suggesting prices could fall:
Potential economic uncertainties, such as global market fluctuations or geopolitical tensions, could impact investor confidence and reduce demand for Austrian properties.
Rising construction costs and supply chain disruptions could slow down new housing projects, potentially leading to a temporary oversupply in certain areas and putting downward pressure on prices.
If inflation continues to rise, it could erode purchasing power and reduce the affordability of homes for many buyers, potentially dampening demand and affecting price growth.
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If property prices go up in Austria, how much would they increase by?
If real estate prices in Austria were to rise in 2025, the increase would likely be around 2% to 6% of their 2024 values.
Typically, real estate in stable, mature markets like Austria appreciates by approximately 2% to 6% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Vienna for 500,000 euros today, don't be surprised if it's priced between 510,000 and 530,000 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Austrian real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 2%, 4%, and 6%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (2% increase) | Price in 2025 (4% increase) | Price in 2025 (6% increase) |
|---|---|---|---|---|
| Viennese Apartment (60 sqm / 646 sqft) | €600,000 | €612,000 | €624,000 | €636,000 |
| Modern Apartment (75 sqm / 807 sqft) | €800,000 | €816,000 | €832,000 | €848,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | €1,500,000 | €1,530,000 | €1,560,000 | €1,590,000 |
| Studio (30 sqm / 323 sqft) | €300,000 | €306,000 | €312,000 | €318,000 |
| Loft (80 sqm / 861 sqft) | €1,000,000 | €1,020,000 | €1,040,000 | €1,060,000 |
| Townhouse (150 sqm / 1,615 sqft) | €2,000,000 | €2,040,000 | €2,080,000 | €2,120,000 |
| Investment Property (50 sqm / 538 sqft) | €500,000 | €510,000 | €520,000 | €530,000 |
Everything you need to know is included in our Property Pack for Austria
If real estate prices go up in Austria, which areas are likely to see the biggest increases?
Today, people who want to move to Austria are looking for a blend of historical charm and modern amenities, which Innere Stadt in Vienna offers. Hence, we could see a price increase there in 2025.
Additionally, there's been a trend towards more dynamic and youthful areas, and Neubau in Vienna has become increasingly popular.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Austrian market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Innere Stadt, Vienna | High | The area's historical significance and luxury housing projects are attracting international buyers, especially as travel normalizes post-pandemic. |
| Neubau, Vienna | High | A vibrant cultural scene and new developments are making it a hotspot for young professionals and creatives. |
| Leopoldstadt, Vienna | Medium-High | Ongoing gentrification and improved transport links, along with several planned redevelopment projects, are likely to push prices higher. |
| Döbling, Vienna | Medium | The shift towards suburban living with easy access to the city center is driving demand for residential properties in this green district. |
| Wieden, Vienna | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Graz City Center | Medium | Investment in local infrastructure and cultural projects is boosting long-term value in this historic area. |
| Linz City Center | Medium-High | With new cultural and commercial spaces being developed, this area is seeing increased demand from both residents and investors. |
| Salzburg Old Town | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Hietzing, Vienna | Medium-High | Its proximity to Schönbrunn Palace and new residential developments make it increasingly attractive to professionals seeking more space. |
| Margareten, Vienna | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Alsergrund, Vienna | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Kitzbühel | High | The area's reputation as a luxury ski destination and high-profile cultural projects are driving a renewed focus on this scenic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Austria?
In 2025, Austrian real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in cities like Vienna and Graz.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Vienna and Salzburg are seeing increased interest. Proximity to the Alps, green spaces, and quality schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Vienna, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Austria's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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