Authored by the expert who managed and guided the team behind the Austria Property Pack
Everything you need to know before buying real estate is included in our Austria Property Pack
Austria's real estate market in 2026 sits in an interesting position: after two years of cooling, prices are stabilizing and demand is cautiously picking up again, especially in Vienna and major cities.
In this constantly updated guide, we break down the current housing prices in Austria, what foreigners need to know before buying, and how the market is actually behaving right now.
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.
How's the real estate market going in Austria in 2026?
What's the average days-on-market in Austria in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Austria is around 180 days (roughly 6 months) from first listing to signed contract, though this varies significantly by property type and location.
The realistic range that covers most typical listings in Austria runs from about 90 days for well-priced Vienna apartments with good energy ratings and transit access, up to 270 days or more for renovation-heavy houses in rural areas or second-home-restricted alpine regions.
Compared to 2023 and 2024, today's Austria days-on-market figure has improved slightly as buyer confidence returns, but properties still take longer to sell than during the 2021-2022 boom when financing was easier and competition among buyers was fierce.
Are properties selling above or below asking in Austria in 2026?
As of early 2026, the estimated average sale-to-asking price ratio for residential properties in Austria is around 90% to 95%, meaning most homes sell 5% to 10% below the original asking price.
In Austria's current market, roughly 15% to 25% of properties sell at or above asking, while the remaining 75% to 85% involve some negotiation downward, though this estimate carries moderate uncertainty because Austria does not publish official sale-versus-asking statistics.
The property types and neighborhoods in Austria most likely to see at-asking or above-asking sales are well-located Vienna apartments with good energy ratings (especially in districts like Neubau, Josefstadt, or Wieden), new-build units with modern specifications, and turnkey homes near major transit hubs where supply remains tight.
By the way, you will find much more detailed data in our property pack covering the real estate market in Austria.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Austria. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What kinds of residential properties can I realistically buy in Austria?
What property types dominate in Austria right now?
In Austria in 2026, the estimated breakdown of residential properties available for sale is roughly 55% to 60% apartments (Eigentumswohnungen), 30% to 35% single-family houses (Einfamilienhäuser), and the remainder split between townhouses, semi-detached homes, and rural properties.
Condominiums represent the largest share of Austria's residential market, dominating listings in Vienna, Graz, Linz, and Salzburg, where urban density and historical building patterns favor multi-unit structures over standalone houses.
Apartments became so prevalent in Austria because Vienna alone accounts for a huge share of the country's population, the city's 19th-century Altbau stock was designed for rental housing, and decades of limited-profit and social housing policy concentrated construction in multi-unit buildings rather than suburban sprawl.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Austria right now?
New-build properties represent a shrinking share of Austria's residential listings in 2026, estimated at around 10% to 15% of available inventory, because completions have dropped sharply from nearly 60,000 dwellings in 2022 to only about 34,000 expected this year.
As of early 2026, the neighborhoods and districts in Austria with the highest concentration of new-build developments include Vienna's 21st district (Floridsdorf), 22nd district (Donaustadt, especially around Seestadt Aspern), parts of Graz's Lend and Eggenberg areas, and pockets of Linz's Urfahr, where larger development sites have enabled multi-unit projects to proceed despite the construction slowdown.
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Which neighborhoods are improving fastest in Austria in 2026?
Which areas in Austria are gentrifying in 2026?
As of early 2026, the top neighborhoods in Austria showing the clearest signs of gentrification include Vienna's 10th district (Favoriten), 15th district (Rudolfsheim-Fünfhaus), 20th district (Brigittenau), parts of Graz's Lend and Gries quarters, and pockets of Linz's Franckviertel.
Visible changes indicating gentrification in these Austria neighborhoods include the arrival of specialty coffee shops and craft bakeries around Brunnenmarkt in the 16th, renovation of historic Altbau buildings into modern loft-style apartments, an influx of young professionals and international students, and the conversion of former industrial spaces into co-working hubs and creative studios.
Price appreciation in these gentrifying Austria neighborhoods over the past two to three years has ranged from roughly 8% to 12% annually, with districts like Favoriten and Rudolfsheim seeing some of the strongest growth rates as they catch spillover demand from more expensive central areas.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Austria.
Where are infrastructure projects boosting demand in Austria in 2026?
As of early 2026, the top areas in Austria where major infrastructure projects are boosting housing demand include Vienna's 2nd, 5th, 9th, and 15th districts along the U2xU5 metro expansion route, as well as neighborhoods around Vienna's Hauptbahnhof that continue to benefit from the central station's ripple effects.
The specific infrastructure projects driving demand in Austria include Vienna's U2xU5 metro expansion (the city's largest transit project in decades), the continued development of Seestadt Aspern as a new urban district with its own U2 connection, and improvements to S-Bahn connections linking Vienna to surrounding Lower Austria towns.
The estimated timeline for completion of Austria's major infrastructure projects varies: the first new U5 stations opened in late 2024, but the City of Vienna has pushed later stages of the U2xU5 project to 2028 and beyond due to construction complexities, so some "future premium" effects are still years away.
The typical price impact on Austria properties when infrastructure projects are announced versus completed is an initial 3% to 7% bump at announcement as speculation builds, followed by a more sustained 5% to 15% premium once the line actually opens and residents experience improved commute times firsthand.
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.
What do locals and insiders say the market feels like in Austria?
Do people think homes are overpriced in Austria in 2026?
As of early 2026, the estimated general sentiment among locals and market insiders is that Austria's existing housing stock feels fairly priced after the 2023-2024 correction, while new-build prices still strike many as expensive relative to what you actually get.
When arguing homes are overpriced in Austria, locals typically cite the price-to-income ratio (how many years of average salary it takes to buy an apartment), the gap between asking prices and what banks will actually finance, and the additional renovation costs that older Altbau units often require.
Those who believe Austria property prices are justified point to the country's low housing supply pipeline (completions fell over 40% from 2022 peaks), Vienna's growing population through immigration, the enduring appeal of Austria as a stable eurozone market, and the fact that rental yields remain steady for landlords.
Austria's price-to-income ratio in Vienna sits at roughly 12 to 15 years of average household income for a typical apartment, which is higher than the national average of around 8 to 10 years and above the EU median, contributing to the perception that urban Austria remains expensive even after recent corrections.
What are common buyer mistakes people regret in Austria right now?
The most frequently cited buyer mistake people regret in Austria is underestimating the total cost of renovating older Altbau apartments, especially the energy upgrades now required to meet modern standards, which can add 50,000 to 150,000 euros on top of the purchase price and turn a seeming bargain into an expensive project.
The second most common buyer mistake in Austria is assuming that foreign-buyer approval processes are quick and straightforward everywhere: in practice, non-EU buyers in provinces like Tyrol, Salzburg, and Vorarlberg face strict second-home quotas and approval requirements from the Grundverkehrsbehörde that can delay or even block purchases.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Austria.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Austria.
Get the full checklist for your due diligence in Austria
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in Austria in 2026?
Do foreigners face extra challenges in Austria right now?
The estimated overall difficulty level foreigners face when buying property in Austria in 2026 is moderate for EU citizens (roughly similar to locals) but significantly higher for non-EU buyers, who must navigate provincial approval requirements and face restrictions in certain regions.
Specific legal restrictions applying to foreign buyers in Austria include the requirement for non-EU citizens to obtain approval from the provincial land transfer authority (Grundverkehrsbehörde), strict second-home quotas in alpine provinces like Tyrol and Vorarlberg, and the need to demonstrate that the purchase serves a legitimate purpose such as primary residence or business use.
Practical challenges foreigners most commonly encounter in Austria include navigating German-language contracts and legal documents, understanding the notary-driven closing process (Treuhänder system), dealing with the slow pace of land register (Grundbuch) updates, and finding banks willing to lend to non-residents without Austrian income documentation.
We will tell you more in our blog article about foreigner property ownership in Austria.
Do banks lend to foreigners in Austria in 2026?
As of early 2026, mortgage financing is available to foreign buyers in Austria, but with stricter requirements than locals face: major banks like Erste Bank, UniCredit Bank Austria, and Raiffeisen regional banks will consider foreign applicants, though approval is harder without Austrian residency or eurozone income.
Typical loan-to-value ratios foreign buyers can expect in Austria in 2026 range from 50% to 70%, meaning down payments of 30% to 50%, with interest rates generally between 3.2% and 4.2% depending on the borrower's profile, fixation period, and documentation quality.
Documentation and income requirements Austria banks typically demand from foreign applicants include at least two years of verified income history, tax returns from the home country, proof of existing assets, a clear credit history, and often a local bank account or even a guarantor if the income source is outside the eurozone.
You can also read our latest update about mortgage and interest rates in Austria.
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 risky is buying in Austria compared to other nearby markets?
Is Austria more volatile than nearby places in 2026?
As of early 2026, Austria's estimated price volatility is lower than Central and Eastern European neighbors like Poland, Hungary, and Czech Republic (which continue seeing double-digit annual swings), roughly similar to Germany's cooling market, and slightly more volatile than Switzerland's ultra-stable premium segment.
Over the past decade, Austria experienced a strong price surge from 2015 to 2022 (cumulative gains of roughly 70% to 90% in Vienna), followed by a 5% to 10% correction in 2023-2024, whereas neighbors like Poland and Hungary saw even steeper climbs and sharper corrections, and Germany followed a similar cooling pattern to Austria.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Austria.
Is Austria resilient during downturns historically?
Austria's estimated historical resilience during economic downturns is relatively strong: the country has shown gradual price adjustments rather than sudden collapses, with its institutional features (large social housing stock, conservative banking practices) acting as stabilizers.
During the most recent major downturn (the 2023-2024 correction following the 2022 interest rate shock), Austria property prices dropped roughly 5% to 10% nationally, with recovery beginning in late 2024 and early 2025 as affordability improved and the KIM-V lending restrictions expired.
The property types and neighborhoods in Austria that have historically held value best during downturns include well-located Vienna apartments in central districts (1st through 9th), properties with good energy ratings that avoid renovation risk, and homes near established transit lines rather than speculative infrastructure projects.
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How strong is rental demand behind the scenes in Austria in 2026?
Is long-term rental demand growing in Austria in 2026?
As of early 2026, the estimated growth trend for long-term rental demand in Austria is moderately strong and rising, driven by households priced out of buying (due to affordability constraints) and continued population growth through immigration.
The tenant demographics driving long-term rental demand in Austria include young professionals relocating to Vienna and Graz for work, international students at universities in Vienna, Salzburg, and Innsbruck, expat families on temporary assignments, and lower-income households who cannot meet the down payment requirements for purchasing.
The neighborhoods in Austria with the strongest long-term rental demand right now include Vienna's inner districts (especially the 2nd through 9th), areas near major transit hubs like Praterstern and Wien Mitte, university-adjacent zones in Alsergrund (9th), and Graz's central districts where student and young professional populations concentrate.
You might want to check our latest analysis about rental yields in Austria.
Is short-term rental demand growing in Austria in 2026?
Regulatory changes currently affecting short-term rental operations in Austria include Vienna's 90-day annual cap on tourist rentals in residential zones (unless you obtain an exemption permit), registration requirements in Salzburg, and stricter enforcement of tourism taxes across most provinces, which makes running an Airbnb-style operation more complex than many foreign investors expect.
As of early 2026, the estimated growth trend for short-term rental demand in Austria is positive, supported by record tourism figures (summer 2025 saw another increase in overnight stays according to Statistik Austria), though legal restrictions mean supply cannot easily expand to meet this demand.
The current estimated average occupancy rate for short-term rentals in Austria varies by location: Vienna city-center properties average roughly 65% to 75% occupancy, Salzburg's Altstadt runs higher at 70% to 80% during peak seasons, and alpine resort areas see strong seasonal spikes but lower year-round averages.
The guest demographics driving short-term rental demand in Austria include European leisure tourists visiting Vienna and Salzburg for culture and music, ski visitors to Tyrol and Salzburg province, business travelers attending conferences and trade fairs, and a growing segment of digital nomads spending medium-term stays in Austrian cities.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Austria.
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 are the realistic short-term and long-term projections for Austria in 2026?
What's the 12-month outlook for demand in Austria in 2026?
As of early 2026, the estimated 12-month demand outlook for residential property in Austria is modestly positive: buyer activity is recovering from its 2023-2024 lows as affordability improves and the expiry of KIM-V lending restrictions makes mortgages somewhat easier to obtain.
The key economic and political factors most likely to influence Austria's property demand over the next 12 months include ECB interest rate decisions (further cuts would boost affordability), employment stability in Vienna's service sector, the pace of immigration-driven population growth, and whether construction activity rebounds or continues declining.
The forecasted price movement for Austria over the next 12 months is a modest increase of roughly 2% to 3% nationally, with Vienna and Salzburg potentially seeing slightly higher gains of 3% to 5%, according to Raiffeisen Research analysis, as demand outpaces the shrinking supply of new homes.
By the way, we also have an update regarding price forecasts in Austria.
What's the 3-5 year outlook for housing in Austria in 2026?
As of early 2026, the estimated 3-5 year outlook for housing prices and demand in Austria is slow but steady growth, with prices likely tracking income gains and inflation rather than repeating the rapid appreciation of 2015-2022, as structural supply constraints meet cautious lending practices.
Major development projects and urban plans expected to shape Austria over the next 3-5 years include the continued U2xU5 metro expansion in Vienna (with later stages completing around 2028-2030), the ongoing buildout of Seestadt Aspern as Vienna's newest district, and potential housing stimulus measures from the federal government aimed at boosting construction activity.
The single biggest uncertainty that could alter Austria's 3-5 year outlook is whether construction activity recovers or continues its decline: building permits remain over 40% below 2021 levels, and if completions stay depressed while population keeps growing, prices could rise faster than current forecasts suggest.
Are demographics or other trends pushing prices up in Austria in 2026?
As of early 2026, the estimated impact of demographic trends on Austria housing prices is moderately positive: population growth (driven almost entirely by immigration) continues adding households, especially in Vienna, which supports demand even as new construction lags behind.
The specific demographic shifts most affecting Austria prices include net immigration adding tens of thousands of new residents annually (Austria's population only grows because of immigration, according to Statistik Austria), household formation among young professionals, and internal migration from rural areas to Vienna, Graz, and Linz.
Non-demographic trends also pushing Austria prices include the ongoing preference for energy-efficient properties (which command premiums as older stock requires costly retrofits), the return of international investors after the 2023-2024 correction, and the enduring perception of Austria as a safe-haven eurozone market.
These demographic and trend-driven price pressures in Austria are expected to continue for at least the next 5-10 years, as immigration is projected to remain positive, housing supply cannot quickly expand due to construction sector weakness, and Vienna's status as a regional hub for international organizations and businesses keeps attracting new residents.
What scenario would cause a downturn in Austria in 2026?
As of early 2026, the estimated most likely scenario that could trigger a housing downturn in Austria is a reversal in ECB monetary policy (unexpected rate hikes squeezing affordability again) combined with a significant weakening of the Austrian labor market that reduces household income and confidence.
Early warning signs that would indicate such a downturn is beginning in Austria include a sharp drop in new mortgage applications (which OeNB tracks quarterly), rising days-on-market beyond the current 180-day average, increasing price reductions on listings, and a spike in forced sales or bank repossessions, which Austria has historically seen very rarely.
Based on historical patterns, a potential downturn in Austria could realistically see prices decline 10% to 15% from peak levels over 2-3 years, similar to the 2023-2024 correction, though Austria's institutional features (large social housing stock, conservative lending) make a crash of 25% or more highly unlikely absent a severe eurozone-wide crisis.
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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 |
|---|---|---|
| Oesterreichische Nationalbank (OeNB) | Austria's central bank publishes a documented, methodology-based house price index used for policy and research. | We used it to ground the big-picture price cycle from boom to cooling to stabilization. We also used it as the anchor series when discussing volatility and resilience. |
| Statistik Austria (HPI) | This is Austria's official statistics agency, and the HPI is based on purchase contracts from the land register. | We used it to quantify recent nationwide price direction and the split between new versus existing dwellings. We used it to avoid relying on listing or advertised prices. |
| Austrian Financial Market Authority (FMA) | The regulator sets and explains binding lending standards for banks operating in Austria. | We used it to list the practical constraints banks apply to mortgage applicants. We used it to translate regulation into what you'll feel as a buyer. |
| Republic of Austria (oesterreich.gv.at) | This is the official government information page summarizing foreign acquisition rules in Austria. | We used it to explain approval requirements and why rules vary by federal state. We used it to structure the foreign-buyer checklist in plain language. |
| Eurostat | Eurostat standardizes housing price statistics across EU countries, enabling fair cross-border comparisons. | We used it to compare Austria to nearby markets without mixing incompatible indices. We used it to ground cross-country volatility discussion. |
| IMF Austria Selected Issues | The IMF cross-checks housing valuation using multiple macro indicators and peer comparisons. | We used it to frame overpriced versus justified using price-to-income and price-to-rent logic. We used it to build downturn scenarios that match macro realities. |
| Raiffeisen Immobilien | Raiffeisen is a major Austrian banking group with a national real estate network and clear lending-rule context. | We used it to capture regional demand patterns and where selling takes longer. We used it to translate financing rules into real buyer behavior. |
| Wiener Linien (U2xU5) | This is the operator's official page for Vienna's largest transit expansion project. | We used it to identify where transit-driven accessibility changes can lift demand. We used it to name concrete corridors that matter for neighborhood momentum. |
| CBRE Austria | CBRE is a global real estate services firm with deep Austrian market coverage and institutional-grade research. | We used it to assess institutional investor sentiment and supply-demand dynamics. We used it to validate market recovery signals from other sources. |
| Statistik Austria (Building Completions) | These are official housing supply statistics derived from the Buildings and Dwellings Register. | We used it to measure how much new housing is actually being delivered. We used it to support the new-build availability discussion and supply pressure. |