Buying real estate in Austria?

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11 hottest real estate areas in Austria in 2025

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Authored by the expert who managed and guided the team behind the Austria Property Pack

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Where are the best places to invest in Austria right now? Is Vienna still the top pick, or are cities like Graz, Linz, and Salzburg gaining ground? What makes these locations attractive to both local and foreign investors?

We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.

Our goal is to highlight the hottest markets in Austria and explain why they’re worth your attention in 2025.

If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.

How this content was created 🔎📝

At Investropa, we study the Austrian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Vienna, Salzburg, and Innsbruck. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

We built our first area analyses on the insights from these conversations and our observations. But it was not enough. To strengthen our findings, we also consulted well-established sources like City of Innsbruck, Tourism Statistics Austria, and the Economic Forecast for Italy (just to name a few).

We only include the best areas to buy or the hottest real estate markets backed by credible sources, solid context, and clear data.

If we can’t find enough supporting information or context, we leave it out. There’s no point in recommending areas based on vague opinions or unverified trends. Our goal is to provide you with a reliable and well-researched guide to the most promising real estate markets—not just a random list of places.

Every source and citation is clearly listed because we believe in transparency and want to give you the tools to explore further if needed (and you should!).

We also use a bit of AI during the writing process to ensure our explanations are clear, accurate, and free of grammar or syntax mistakes. This way, you get content that’s both professional and easy to read.

When reading this content, you'll see that our team designed custom infographics to summarize and visualize key trends, making it clear why these markets stand out. We hope you’ll find them helpful! All other visuals were crafted in-house to ensure quality and clarity.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) Linz is seeing rising interest due to its tech industry growth and influx of skilled workers

Linz is seeing a big jump in property values thanks to its thriving tech scene.

The city's tech industry has grown by 15%, drawing in companies like Dynatrace and Runtastic. This boom is creating a lot of new jobs, which means more people need places to live. As a result, apartment and condo prices have shot up by 10.1% to 12.2%, making Linz a hot spot for real estate in Austria.

With tech companies expanding, there's a noticeable buzz around certain neighborhoods. These areas are becoming prime locations for new offices, and the demand for housing is following suit. If you're thinking about buying property, these tech-centric areas might be worth a look.

Skilled workers are flocking to Linz, drawn by its strong economy and great location. This influx is pushing up property values as more professionals seek homes in the city. It's a demographic shift that's reshaping the housing market.

For those considering a move, Linz offers a vibrant job market and a chance to be part of a growing community. The city's appeal is clear, with its mix of career opportunities and rising property values.

As Linz continues to grow, the real estate market is expected to keep climbing. It's a city on the rise, with plenty of potential for those looking to invest in property.

Sources: Luxury Vienna, Explore City Life

2) KitzbĂĽhel is gaining attention for its luxury ski status and rising real estate prices

KitzbĂĽhel's real estate prices are soaring thanks to its luxury ski destination status.

In recent years, the town has seen a 150% increase in property prices since 2012, with the average cost per square meter reaching impressive heights. This isn't just a random spike; it's a consistent trend driven by the demand for high-end chalets and apartments. Since the COVID-19 pandemic, these properties have become even more attractive as investment opportunities.

Real estate agencies highlight KitzbĂĽhel's charm, pointing to its picturesque landscape and luxury appeal as key selling points. The town's allure is further enhanced by its media accolades, such as being named "Austria's Best Ski Resort" and "Best Ski Resort Company in the World 2023" by the World Ski Awards.

This recognition has drawn in wealthy international buyers, making KitzbĂĽhel one of the most expensive regions in Austria. The influx of high-profile individuals purchasing property has only added to the town's prestige and contributed to the rising real estate prices.

Tourists flock to KitzbĂĽhel not just for its slopes but also for its vibrant social scene, which includes exclusive events and a chance to rub shoulders with celebrities. This social buzz adds another layer of desirability to owning property here, making it a hot spot for those looking to invest in luxury real estate.

For those considering buying property in KitzbĂĽhel, it's not just about owning a piece of the Alps; it's about investing in a lifestyle that combines natural beauty with luxury and exclusivity. The town's unique blend of charm and prestige ensures that its real estate market remains robust and appealing.

Sources: Engel & Völkers, Austria.info, Living Deluxe

infographics comparison property prices 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.

3) Graz’s Lend district is thriving with its trendy vibe and high rental demand from young professionals

The Lend district in Graz is booming thanks to its trendy vibe and rising demand for rental properties among young professionals.

In recent years, Lend's population has surged, growing from 27,859 in 2011 to about 33,767 in 2024. This jump highlights the area's increasing allure. Young professionals are flocking here, drawn by the district's vibrant atmosphere and the promise of a lively lifestyle.

Rental yields in Lend are a big draw, with Graz boasting an average gross rental yield of 3.61% in early 2024. This figure reflects the strong demand for rental properties, especially from the younger crowd. The city's demographic data shows a high concentration of young professionals, aligning perfectly with the urbanization trends sweeping through Graz.

Lend is consistently spotlighted in surveys and media as a hotspot for young adults. The district is famous for its creative scene, packed with hip bars and cool shops, making it a magnet for those seeking a dynamic place to live and work. The number of cafes, bars, and cultural venues is on the rise, further cementing its status as a booming area.

Social media is buzzing with Lend's vibrant lifestyle, showcasing its appeal to a younger audience. The district's creative energy and trendy spots are frequently highlighted, drawing even more attention and interest. This buzz is not just online; it's evident in the streets, where the lively atmosphere is palpable.

For anyone considering a move to the country, Lend offers a unique blend of urban excitement and community spirit. It's a place where young professionals can thrive, surrounded by like-minded individuals and a plethora of cultural and social opportunities.

Sources: Population Statistics, Rental Yields, Urban Development

4) Innsbruck’s Hötting neighborhood is in demand for its scenic views and high rental yields from student housing

Hötting in Innsbruck is famous for its stunning views and lucrative rental returns, especially from student housing.

With the University of Innsbruck hosting around 28,000 students, half of whom are international, there's a constant buzz and a strong demand for student accommodation. This makes Hötting a hotspot for students looking for a place to stay.

The city's urban planners are keen on creating affordable and appealing housing options for students, which further fuels the demand in areas like Hötting. This neighborhood is a top pick for students, thanks to its strategic location and vibrant community.

Local government and tourism boards often highlight Innsbruck's scenic neighborhoods, including Hötting, for their breathtaking natural beauty. This not only attracts residents but also investors who see potential in the area's charm.

Hötting's picturesque views are a major draw, making it a highly sought-after area for both living and investing. The combination of natural beauty and high rental yields makes it a unique opportunity.

Investors are particularly interested in Hötting due to its high rental yields from student housing, driven by the university's large student body. This creates a win-win situation for both landlords and students.

Sources: Global Property Guide, Times Higher Education, City of Innsbruck

5) Wels is drawing investors with its industrial growth and lower property prices than nearby cities

Wels is becoming a hotspot for investors thanks to its booming industrial growth and affordable property prices compared to nearby cities.

In 2023, Austria's industrial production index saw a 1.1% year-over-year growth, with Wels playing a key role in this upward trend. This means the industrial sector here is thriving, which is always a promising sign for those looking to invest.

Property prices in Wels are more budget-friendly than in other Austrian cities. For instance, back in 2020, the average sale price for a freehold apartment was about €306,000, which was lower than in cities like Linz. This affordability, along with the potential for rising prices in popular areas, makes Wels a smart choice for property investment.

The real estate market in Upper Austria, where Wels is located, has been buzzing with activity. In 2020, there were over 3,315 property transactions with a transaction volume exceeding one billion euros. This level of activity indicates a strong and vibrant market, appealing to investors seeking opportunities.

Wels offers a unique blend of industrial growth and affordable living, making it an attractive option for those looking to invest in property. The city's industrial sector is not just growing; it's thriving, which bodes well for future property values.

With its strategic location and competitive property prices, Wels is drawing attention from investors who see the potential for growth and profit. The combination of a strong industrial base and a lively real estate market makes it a compelling choice.

Sources: Austria Industrial Production Index Growth, Property prices in Upper Austria, Austrian Market Report 2024

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6) St. Pölten is becoming a real estate hotspot with its strategic location and urban development projects

St. Pölten is quickly becoming a real estate hotspot thanks to its strategic location and ongoing urban development projects.

One major factor is the rise in property prices, especially noticeable after the completion of the Steingötterhof project, which added 191 new residential apartments to the city. This development is part of a larger trend where property values in St. Pölten are increasing compared to other Austrian cities.

The city is also investing heavily in infrastructure, including transportation and public amenities, to make it more livable and attractive. The government is actively working on initiatives like the STEP 2025 Urban Development Plan, which aims to enhance connectivity to major cities like Vienna and promote sustainable urban growth.

St. Pölten's strategic location is attracting a growing number of businesses and startups, creating a thriving business environment. This boom supports the real estate market by increasing demand for both residential and commercial properties. The city's population growth is fueled by positive economic indicators and improved connectivity.

With more businesses setting up shop, the demand for housing and office space is on the rise. This trend is further supported by the city's efforts to improve public amenities and infrastructure, making it a more attractive place to live and work. The ongoing urban development projects are designed to cater to this growing demand.

As St. Pölten continues to develop, it's becoming a prime location for real estate investment. The combination of strategic location, infrastructure improvements, and a thriving business environment makes it an appealing choice for potential buyers. The city's proactive approach to urban planning ensures that it remains a competitive market.

Sources: 6B47, Urban Policy Platform

7) Bregenz is gaining interest for its scenic Lake Constance location and vibrant cultural events

Bregenz is seeing a surge in property demand thanks to its stunning location and lively cultural scene.

Imagine living by the serene waters of Lake Constance. This picturesque setting is a magnet for homebuyers who crave natural beauty right at their doorstep. It's no wonder that more people are drawn to areas like Bregenz, where nature and lifestyle blend seamlessly.

But it's not just the lake that has people talking. Bregenz is famous for its cultural events, especially the Bregenz Festival. This festival alone attracts hundreds of thousands of visitors each year, turning the city into a cultural hotspot. With exciting performances like "Der FreischĂĽtz" by Carl Maria von Weber lined up for 2025, the city's cultural allure is only growing.

On top of that, Bregenz is investing heavily in its infrastructure. The expansion of the Festival District is a game-changer, featuring a new festival hall and an indoor swimming pool with lake access. These upgrades are making the city even more appealing to both residents and tourists.

These developments are not just about aesthetics; they enhance the quality of life. New amenities and improved infrastructure are key reasons why property demand is rising in Bregenz. People are eager to be part of a community that offers both beauty and convenience.

Sources: Statistik Bodensee, The Mayor, Vorarlberg Travel

8) Salzburg is booming with its cultural charm and limited housing supply

Salzburg's real estate market is booming thanks to its unique charm and limited housing options.

Imagine living in a city where history and culture are at your doorstep. Salzburg's rich cultural scene draws in those who appreciate its historical allure, keeping housing demand high, especially in the heart of the city where all the action is.

But here's the catch: building new homes in Salzburg isn't easy. As a UNESCO World Heritage Site, the city faces strict construction limits, particularly in its historic center. This scarcity of new housing keeps the market tight and prices on the rise.

Tourism is another piece of the puzzle. Visitor numbers have surged by 96% compared to last year, thanks to Salzburg's irresistible blend of culture and history. This influx of tourists adds to the demand for property, as many seek to invest in vacation homes or rental properties.

For those considering a move or investment, Salzburg offers a unique opportunity to be part of a vibrant community with a rich cultural backdrop. The city's limited housing supply and growing popularity make it a hot spot for real estate.

Whether you're drawn by the allure of its historic streets or the potential for a sound investment, Salzburg's real estate market is one to watch. The combination of cultural appeal and limited housing makes it a unique and attractive option.

Sources: Engel & Völkers, Snow Industry News

infographics map property prices 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.

9) The Wachau Valley is gaining attention for its historic properties and tourism investment potential

The Wachau Valley is becoming a hotspot for those interested in historic properties and tourism investments.

With its rich historical and cultural significance, the region is attracting more visitors than ever. People flock to see iconic sites like Melk Abbey and enjoy scenic tours, making it a favorite for history buffs and wine enthusiasts alike. This surge in interest is part of a larger trend in wine tourism, which is gaining momentum globally.

The Wachau Valley's charm lies in its unique mix of history, wine, and stunning landscapes. This combination is drawing in tourists, and the region is frequently featured in travel guides and itineraries. The inclusion in these guides underscores its growing appeal as a must-visit destination.

Investors are taking note of the increased tourism and the potential for growth in the hospitality sector. The valley's picturesque vineyards and historic sites offer a unique opportunity for those looking to invest in tourism-related ventures.

As more people discover the Wachau Valley, the demand for accommodations and experiences is rising. This trend is creating a buzz among investors who see the potential for profitable tourism-related projects in the area.

Whether you're interested in the history, the wine, or the investment opportunities, the Wachau Valley is a place to watch. Its blend of cultural heritage and natural beauty makes it a compelling choice for those looking to invest in a region with growing tourism potential.

Sources: ETIAS, Global Property Guide, Grand View Research, Viator

10) Klagenfurt's Wörthersee area is gaining interest for its luxury lakeside homes and thriving vacation rental market

The Wörthersee area in Klagenfurt is becoming a prime spot for property investors.

In recent years, Austria's property market has been bouncing back, with a noticeable uptick in demand for rental apartments. This trend is particularly evident in high-demand areas like Vienna, and it's spilling over into the Wörthersee region. Investors are eyeing this area not just for its beauty but for its potential returns.

Luxury lakeside properties are catching the eye of many, thanks to the booming Austrian hotel industry. With more tourists flocking to places like Vienna and Klagenfurt, there's a clear push towards high-end accommodations. This means the Wörthersee area is seeing a surge in interest for its upscale lakeside homes.

The vacation rental market in Klagenfurt is also riding this wave. Cities such as Vienna and Salzburg have reported significant increases in overnight stays, hinting that Klagenfurt's rentals are becoming hot commodities. The natural allure and recreational activities around Wörthersee only add to its charm, drawing more tourists each year.

Media outlets frequently spotlight the Wörthersee area for its stunning landscapes and leisure options, making it a top choice for vacationers. This attention not only boosts tourism but also enhances the appeal of investing in local properties.

With the combination of rising property values and a thriving vacation rental scene, the Wörthersee area is proving to be a lucrative opportunity for investors looking to tap into Austria's growing real estate market.

Sources: EHL Publication, DLA Piper, Key Data Dashboard

11) Villach is gaining interest for its affordable homes and closeness to the Italian and Slovenian borders

Villach is quickly becoming a hot spot for property buyers due to its affordable prices.

Compared to bustling cities like Vienna, Villach offers more budget-friendly options, making it a smart choice for those looking to get more bang for their buck. Its strategic location near the Italian and Slovenian borders adds to its charm, offering residents the luxury of easy access to multiple countries.

This proximity is not just a perk for residents but also a magnet for investors eyeing cross-border opportunities. The new cross-border train services have made Villach even more connected, enhancing its appeal. With these improvements, Villach is becoming a hub of connectivity in the region.

Tourism is another feather in Villach's cap. Austria saw record-high overnight stays in 2024, and this influx of tourists can drive up property demand. This makes Villach an attractive market for both living and investing, as the tourism boom fuels real estate growth.

All these factors combined make Villach a promising area for real estate. Its blend of affordability, strategic location, and growing tourism scene positions it as a rising star in the property market.

Sources: Economic Forecast for Italy, Cross-Border Train Services, Tourism Statistics Austria, Austria Real Estate Market Outlook 2024

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.