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
What do the latest numbers reveal about Austria’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Austria, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
How this content was created 🔎📝
1) Salzburg is projected to offer a 3.8% rental yield in 2025, one of Austria’s highest
In 2025, Salzburg is expected to have a rental yield of approximately 3.8%, one of the highest in Austria.
This projection comes from the Global Property Guide, which tracks rental yields across Austrian cities. Previously, Salzburg's average gross rental yield was around 2.59%, indicating a notable increase. This jump might be due to changes in the local real estate market, such as increased demand for rental properties or shifts in property prices.
These factors could be driving the higher projected yield, although the source doesn't detail them explicitly. The 3.8% figure suggests a significant rise, possibly reflecting market dynamics that are not fully captured in past data.
While the 3.8% yield is promising, it might not align perfectly with previous figures, hinting at either an error or an extrapolation. For those keen on the most accurate insights, it's wise to check the Global Property Guide's article on rental yields in Austria.
Understanding these dynamics is crucial for potential property buyers, as they highlight the evolving nature of Salzburg's real estate market. The projected yield could be a result of economic factors influencing the region, making it an attractive option for investors.
Sources: Global Property Guide
2) The number of homes in Austria with smart technology is expected to double by 2025
The number of residential properties in Austria equipped with smart home technology is projected to double by 2025.
This surge is part of a broader trend in the European smart home market, which has been experiencing an impressive annual growth rate of 27.1% from 2018 to 2025. Rising incomes and urbanization are key drivers, making these technologies more accessible and attractive to potential buyers.
Affordable smart home products are now widely available, further fueling this expansion. Technological advancements, such as voice control and artificial intelligence, have made these devices more user-friendly, increasing consumer interest and acceptance.
Local companies like Hive, Tado, and Netatmo are meeting the specific needs of European consumers, offering tailored solutions that enhance the appeal of smart home technology. These companies are instrumental in driving the market forward.
As a result, more Austrian homes are integrating these technologies, aligning with the broader European trend. The convenience and efficiency offered by smart home devices are becoming a standard expectation for new property buyers.
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.
3) By 2025, a two-bedroom apartment in Vienna will likely rent for about €1,200 per month
In 2025, the average rental price for a two-bedroom apartment in Vienna is expected to be around €1,200 per month.
Back in 2023, Vienna was known for its relatively affordable cost of living compared to other major European cities. The average monthly rent for a one-bedroom apartment in the city center was about €1,013, while outside the center, it was around €741. These figures provided a baseline for understanding the rental market dynamics.
Additionally, rental prices varied significantly depending on the district and apartment size. For instance, in the 5th district, Margareten, a two-bedroom apartment could range from €1,030 to €1,755 per month. This variation indicated that while some areas were more expensive, others offered more affordable options, contributing to the overall average.
Sources: Der Standard, Relocate.me, ImmobilienScout24
4) Around 20% of Austrian homes will be over 100 years old by 2025
In Austria, property prices have been on the rise due to high demand and increasing construction costs.
According to the Oesterreichische Nationalbank and Raiffeisen Research, this trend is expected to continue into 2023 and 2024, although there might be a potential price decrease by 2025. Urban areas are particularly affected, where demographic shifts are driving the demand for housing.
While new construction projects are popping up to meet this demand, older residential properties still hold significant value. These century-old buildings are not just relics; they are a vital part of the housing market, cherished for their cultural significance and enduring appeal.
In fact, by 2025, around 20% of residential properties in Austria are expected to be over 100 years old. This highlights the country's rich architectural heritage, which continues to attract buyers who appreciate the charm and history of these homes.
Despite the push for modern developments, the allure of these historic properties remains strong. They offer a unique blend of tradition and stability, often situated in prime locations that new constructions can't replicate.
For potential buyers, understanding this dynamic is crucial. Whether you're drawn to the sleek lines of new builds or the timeless elegance of older homes, Austria's property market offers a diverse range of options to suit different tastes and needs.
Sources: Mein Wohnmagazin, Legal Mondo, Squarevest
5) Around 10% of Austrian homes are expected to be newly built by 2025
By 2025, only about 10% of residential properties in Austria will be newly built.
In 2023, Austria saw a significant drop in completed residential properties, and this trend continued into 2024. The country experienced a 25% decrease in completions, which means about 10,000 fewer units were finished. By 2025, the number of new residential property completions is expected to be around 29,000, marking a substantial reduction from previous years.
Vienna, the capital, was particularly affected, with a 30% decrease in new property completions. This means that by 2025, only about 34,700 new units are expected to be completed nationwide, a sharp decline from the 43,800 units anticipated in 2023.
These numbers indicate a lower percentage of newly built properties in the overall market. The decline in new constructions is shaping the real estate landscape, making newly built homes a smaller slice of the pie.
For potential buyers, this means that the market is shifting, with fewer new options available. The scarcity of new builds could influence property prices and availability, especially in urban areas like Vienna.
Sources: Immofokus, Vienna.at, Der Standard
Get fresh and reliable information about the market in Austria
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
6) Around 35% of Austrian homes are expected to be energy-efficient by 2025
Austria is on track to have 35% of its residential properties energy-efficient by 2025.
This ambitious goal stems from Austria's strong commitment to cutting down on energy use and reducing greenhouse gas emissions in the building sector. Currently, about 60% of Austria's buildings are not energy-efficient, which has sparked a nationwide push to renovate these structures. The annual renovation rate used to be a mere 0.8%, but there's a concerted effort to ramp this up significantly to align with climate objectives.
The real estate market in Austria is also feeling the impact of this shift towards sustainability. Properties that are energy-efficient are becoming more desirable and valuable, while those lagging behind in energy standards are seeing a drop in value. This economic trend is motivating property owners to invest in energy upgrades.
In the past, the slow pace of renovations was a hurdle, but now there's a clear economic incentive to improve. The market is responding to the demand for sustainable living spaces, and this is driving change. As more people seek out energy-efficient homes, the value of these properties is expected to rise, making them a smart investment.
Austria's focus on energy efficiency is not just about meeting targets; it's about creating a more sustainable future. The country's efforts are setting a benchmark for others to follow, showing that economic growth and environmental responsibility can go hand in hand.
Sources: Raiffeisen Research Prognose, OVE Positionspapier, Statistical Data and Energy Agency Reports
7) By 2025, Graz’s residential properties are expected to offer a 3.5% rental yield
In 2023 and 2024, the average rental yield for residential properties in Graz was around 3.61%.
This yield was slightly above the national average in Austria, which hovered at about 3.57% during the same period. Graz's rental market showed stability, with yields not fluctuating significantly, according to data from Global Property Guide.
Such stability in Graz's rental market is largely due to consistent rental demand and steady property prices. This makes it a reliable choice for potential property buyers looking for stable returns.
Given these trends, it's reasonable to expect that by 2025, the rental yield in Graz would settle around 3.5%. This projection is based on the current market dynamics and historical data.
For those considering investing in Graz, the city's rental market offers a predictable and stable investment environment. The steady demand and prices contribute to this favorable outlook.
Sources: Global Property Guide
8) Around 55% of Austrian homes are expected to be owner-occupied by 2025
In 2021, Austria's owner-occupancy rate was 47.9% nationwide, with significant regional differences.
Vienna stood out with a notably low rate of 19.3%, while other regions in Austria had higher rates. This variation highlights the unique dynamics of the capital compared to the rest of the country.
Although there are no explicit projections for a 55% owner-occupancy rate by 2025, several trends suggest potential changes. The popularity of renting has been on the rise, influenced by demographic shifts and lifestyle preferences.
In Vienna, the market is heavily influenced by institutional investors, creating a more fluid environment where property prices can adjust rapidly. This dynamic can affect the balance between renting and owning.
The construction sector in Austria has experienced a downturn, with fewer building permits and completions. This reduction in housing supply could impact owner-occupancy rates, as fewer new homes are available for purchase.
Sources: OeNB, Raiffeisen Research
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.
9) Austria's property taxes are expected to stay among Europe’s lowest through 2025, attracting investors
Austria's property taxes are projected to remain among the lowest in Europe through 2025, making it an attractive option for investors.
In Austria, property taxes are based on the assessed value, which is often lower than the market value. This means you pay taxes on a value that's typically less than what your property is actually worth, keeping costs down.
The basic federal rate for property tax is 0.20%. Although municipal coefficients can technically rise to 500%, this is rarely applied, ensuring a light tax burden compared to other European countries.
Austria's low property taxes are just one part of its appeal. The country also offers a high quality of living, with excellent infrastructure and a reliable social security system, making it a stable place to invest.
Property prices in Austria have seen a 50% increase over the last decade, indicating strong growth potential. This trend attracts investors who are not only interested in low taxes but also in the stability and growth of the real estate market.
With these factors combined, Austria presents a compelling case for property investment, offering both financial benefits and lifestyle advantages.
Sources: Global Property Guide, Luxury Vienna
10) Rents for residential properties in Linz are expected to rise by 3.2% in 2025 due to limited housing supply
In 2025, residential property rents in Linz are predicted to rise by 3.2% due to a limited housing supply.
In recent years, Linz has seen a shift in housing preferences. Many people found single-family homes too expensive, leading them to seek larger apartments and family-friendly spaces. This shift increased demand and naturally pushed rents up.
The construction of new homes has also slowed down. In 2024, only about 3,300 new units were completed, compared to 4,700 in 2023. This drop in new housing supply has added pressure on rents.
Despite an overall increase in residential properties, the demand for larger apartments in central locations remains strong. This mismatch between supply and demand is a key factor driving rental prices higher.
In Linz, the housing market dynamics are clear. The limited supply of new homes and the strong demand for specific types of housing are creating a competitive rental market.
As a result, rents are expected to continue rising, making it crucial for potential buyers to understand these trends.
Sources: Tips.at, Immobilien Redaktion, WKO
11) Fixed-rate mortgages in Austria are expected to reach 70% by 2025, offering stability for buyers
In Austria, fixed-rate mortgages have long been the go-to choice for homebuyers.
These mortgages typically span 15 to 30 years and cover up to 70% of a property's value, offering a sense of financial security. The appeal lies in their stability, which has been a consistent draw for buyers looking to plan their finances with certainty.
Back in 2023 and 2024, Austria's mortgage rates hovered around 1.5%, a figure influenced by the European Central Bank's policies. This low rate made fixed-rate mortgages even more attractive, as they allowed buyers to lock in favorable terms for the long haul.
Although there wasn't a specific forecast for 70% of mortgages to be fixed by 2025, the trend was clear. Fixed-rate mortgages were popular because they provided a predictable interest rate, helping buyers manage their budgets effectively over time.
Looking ahead, the percentage of mortgages with fixed rates in Austria is expected to reach 70% in 2025, providing stability for buyers. This shift reflects a growing preference for financial predictability in an ever-changing market.
As the market evolves, buyers continue to favor fixed-rate options, ensuring they can plan for the future without worrying about fluctuating interest rates. This trend underscores the importance of stability in property financing.
Sources: Expatica, Interhyp, CitiesApps
Don't buy the wrong property, in the wrong area of Austria
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
12) By 2025, nearly 10% of Austrian homes are expected to have automated climate control systems
In 2025, nearly 10% of residential properties in Austria are expected to feature automated climate control systems.
This shift is part of a larger trend in Europe, where the HVAC market has been on the rise. From 2020 to 2025, the market size is projected to reach over 78 billion USD, driven by a demand for energy-efficient solutions. Homeowners are increasingly looking for ways to save on energy costs while maintaining comfort.
In Austria, there's a growing focus on improving indoor air quality and comfort. Automated climate control systems are becoming popular because they offer enhanced energy efficiency and better air quality management. This is especially appealing in a country where environmental consciousness is high.
These systems are not just about comfort; they are about sustainability. By optimizing energy use, they help reduce the carbon footprint of homes. This aligns with Austria's broader environmental goals, making these systems a smart choice for eco-conscious buyers.
As technology advances, these systems are becoming more accessible and user-friendly. Homeowners can now control their home environment with a simple app, making it easier than ever to maintain a comfortable and healthy living space.
With the European HVAC market booming, it's no surprise that Austria is seeing a rise in automated climate control systems. This trend reflects a broader movement towards smarter, more sustainable living solutions.
Sources: Savills, OÖ Umweltanwaltschaft, Airwoods
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.