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
If you're a foreigner thinking about buying property in Austria, you've probably noticed how hard it is to get reliable, up-to-date information about specific neighborhoods and districts.
Austria's real estate market operates differently from most countries, with strong rent regulations, strict short-term rental rules, and regional variations that can make or break your investment.
We constantly update this blog post with the latest data and market trends to help you make an informed decision.
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.
What's the Current Real Estate Market Situation by Area in Austria?
Which areas in Austria have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for residential property in Austria are Vienna's 1st district (Innere Stadt), Vienna's 4th district (Wieden), and Vienna's 9th district (Alsergrund), where prices for used apartments typically range from 5,200 to 5,700 euros per square meter.
In these premium Vienna districts, new-build apartments command significantly higher prices, with Innere Stadt reaching 13,000 to 20,000 euros per square meter for exceptional properties, while Alpine resort areas in Tyrol and Salzburg can match these figures for legally usable second homes.
Each of these high-priced areas commands a premium for distinct reasons:
- Innere Stadt (1st district): UNESCO heritage status, virtually no new construction, and trophy-asset scarcity for wealthy buyers.
- Wieden (4th district): Proximity to Naschmarkt, compact walkability, and strong demand from young professionals.
- Alsergrund (9th district): University presence, hospital district employment, and excellent public transport connections.
Which areas in Austria have the most affordable property prices in 2026?
As of early 2026, the most affordable areas for residential property in Austria include Vienna's 10th district (Favoriten), Vienna's 11th district (Simmering), Vienna's 15th district (Rudolfsheim-Funfhaus), and Vienna's 21st district (Floridsdorf), where used apartment prices typically range from 3,400 to 3,600 euros per square meter.
Outside Vienna, provinces like Styria (excluding Graz), Carinthia, parts of Lower Austria, and Burgenland offer even more affordable options, with average prices often falling below 3,000 euros per square meter in less urbanized areas.
The main trade-offs in these lower-priced Vienna districts include longer commute times to the city center in Floridsdorf and Simmering, a more industrial feel and less walkability in Favoriten, and fewer trendy cafes or cultural attractions in Rudolfsheim-Funfhaus, though all benefit from solid public transport connections.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Austria Offer the Best Rental Yields?
Which neighborhoods in Austria have the highest gross rental yields in 2026?
As of early 2026, the Vienna districts with the highest gross rental yields for residential property are Favoriten (10th district) at around 4.3%, Rudolfsheim-Funfhaus (15th district) at approximately 4.2%, Simmering (11th district) at about 4.0%, and Floridsdorf (21st district) also near 4.0%.
The typical gross rental yield range for investment properties across Austria as a whole falls between 2.5% and 4.5%, with Vienna's outer districts consistently outperforming the inner ring and Alpine resort areas where purchase prices are higher relative to achievable rents.
Each of these high-yield Vienna districts delivers stronger returns for specific reasons:
- Favoriten (10th district): Lower entry prices near the main train station hub with steady tenant demand from commuters.
- Rudolfsheim-Funfhaus (15th district): Affordable housing stock with improving infrastructure and younger tenant profiles.
- Simmering (11th district): Industrial heritage keeping prices low while new metro access supports rental demand.
- Floridsdorf (21st district): Family-friendly areas with lower prices and strong demand from local workers.
Finally, please note that we cover the rental yields in Austria here.
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Which Areas in Austria Are Best for Long-Term Rentals?
Which neighborhoods in Austria have the strongest demand for long-term tenants?
The Vienna districts with the strongest demand for long-term tenants in Austria are Leopoldstadt (2nd district), Landstrasse (3rd district), Alsergrund (9th district), and Neubau (7th district), all of which benefit from excellent transit access and proximity to major employers or universities.
Vienna's rental vacancy rate is estimated at just 1% to 2% in early 2026, and properties in these high-demand districts typically rent within two to four weeks of listing, reflecting the structural shortage of available long-term rental stock.
Different tenant profiles drive demand in each of these neighborhoods:
- Leopoldstadt (2nd district): International students at Vienna University of Economics and young professionals.
- Landstrasse (3rd district): Families and embassy workers seeking central yet quieter locations.
- Alsergrund (9th district): Medical professionals near the AKH hospital and university students.
- Neubau (7th district): Creative professionals and expats drawn to the trendy cafe and gallery scene.
The key amenity making these neighborhoods especially attractive to long-term tenants in Austria is the combination of U-Bahn metro stations within walking distance, local markets for daily shopping, and green spaces or parks that provide quality of life without needing a car.
Finally, please note that we provide a very granular rental analysis in our property pack about Austria.
What are the average long-term monthly rents by neighborhood in Austria in 2026?
As of early 2026, average long-term monthly rents for used apartments in Vienna range from around 11.50 euros per square meter in outer districts like Simmering (11th district) to approximately 16.50 euros per square meter in the Innere Stadt (1st district).
In the most affordable neighborhoods of Austria such as Favoriten (10th district) or Floridsdorf (21st district), the typical rent range for a 60-square-meter entry-level apartment falls between 700 and 850 euros per month including operating costs.
For mid-range neighborhoods like Landstrasse (3rd district) or Josefstadt (8th district), tenants typically pay between 900 and 1,200 euros per month for a 60-square-meter apartment, reflecting their central location and amenities.
In the most expensive neighborhoods such as Innere Stadt (1st district), Dobling (19th district), or the Altstadt area of Salzburg, high-end apartments can command 1,400 to 2,000 euros per month or more for similar sizes, especially for new-build or fully renovated properties.
You may want to check our latest analysis about the rents in Austria here.
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Which Are the Up-and-Coming Areas to Invest in Austria?
Which neighborhoods in Austria are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Austria currently gentrifying and attracting new investors include Vienna's Favoriten around the Sonnwendviertel near the main train station, Leopoldstadt's Nordbahnviertel, Brigittenau near Friedensbrucke and the Augarten edge, and parts of Margareten (5th district) that are seeing increased interest from younger buyers.
These gentrifying neighborhoods in Austria have experienced annual price appreciation rates of roughly 3% to 6% over the past two years, outperforming the broader Vienna market which saw stabilization after the 2022-2024 correction period.
Which areas in Austria have major infrastructure projects planned that will boost prices?
The areas in Austria with major infrastructure projects expected to boost property prices are Vienna districts along the U2xU5 metro expansion, the Seestadt Aspern development in Donaustadt (22nd district), and Graz neighborhoods benefiting from new tram line extensions.
The specific infrastructure projects underway include the U2xU5 metro expansion creating new stations at Frankhplatz, Neubaugasse, Pilgramgasse, and Matzleinsdorfer Platz by 2030, the ongoing Seestadt Aspern urban development which is one of Europe's largest city-building projects, and Graz's Straßenbahnlinie 8 tram extension connecting growth areas to the city center.
Historically, areas near completed major infrastructure projects in Austria have seen price increases of 10% to 20% over the five to ten years following project completion, with station-adjacent properties typically outperforming the broader district average.
You'll find our latest property market analysis about Austria here.
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.
Which Areas in Austria Should I Avoid as a Property Investor?
Which neighborhoods in Austria with lots of problems I should avoid and why?
Rather than specific neighborhoods to avoid entirely, Austria presents certain deal types and situations that investors should approach with extreme caution, including Alpine resort properties without proper legal status, Vienna apartments that only make financial sense as short-term rentals, and buildings where rent regulation exposure under the Mietrechtsgesetz (MRG) is not fully understood.
The main problems affecting these investment types in Austria include:
- Alpine resort properties in Tyrol and Salzburg: Second-home restrictions can create legal complexity and severe resale illiquidity.
- Vienna units dependent on Airbnb income: Strict 90-day limits and enforcement fines up to 50,000 euros make this strategy high-risk.
- Older buildings under rent regulation: Capped rents can permanently compress yields below what investors expected.
For Alpine resort properties to become viable investment options, buyers would need to secure proper year-round residential usage permits, obtain all required co-owner approvals, and ensure the municipality allows the intended use, which is often difficult for non-residents.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Austria.
Which areas in Austria have stagnant or declining property prices as of 2026?
As of early 2026, areas in Austria with stagnant or declining property prices include parts of rural Lower Austria, smaller towns in Carinthia, and some secondary market areas that experienced speculative buying during the low-interest-rate period of 2020-2022.
These areas have experienced price stagnation or declines of roughly 5% to 10% over the past two to three years, as the interest rate shock reduced transaction volumes and exposed locations with weaker underlying demand fundamentals.
The main causes of price stagnation or decline in these Austrian areas include:
- Rural Lower Austria towns: Population outflows to Vienna and limited local employment opportunities.
- Secondary Carinthian areas: Over-reliance on seasonal tourism without year-round economic activity.
- Speculative 2020-2022 purchases: Properties bought at peak prices now struggling to find buyers at similar levels.
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Which Areas in Austria Have the Best Long-Term Appreciation Potential?
Which areas in Austria have historically appreciated the most recently?
The areas in Austria that have historically appreciated the most over the past five to ten years are Vienna's inner districts (1st through 9th), prime locations in Salzburg city, well-connected suburban Vienna districts like Donaustadt (22nd), and select Alpine resort areas with clean legal usability.
Approximate appreciation figures for these top-performing Austrian areas include:
- Vienna inner districts: Cumulative appreciation of 25% to 40% over five years before the 2023 correction.
- Salzburg Altstadt: Steady annual growth of 4% to 6% driven by limited supply and international demand.
- Donaustadt (22nd district): Annual appreciation of 5% to 7% as Seestadt development matured.
- Legally compliant Alpine properties: Premium prices 20% to 30% above restricted-use comparable properties.
The main driver causing above-average appreciation in these Austrian areas has been the combination of constrained land supply in desirable locations, strong population growth particularly in Vienna, and high quality-of-life rankings that attract both domestic and international buyers.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Austria.
Which neighborhoods in Austria are expected to see price growth in coming years?
The neighborhoods in Austria expected to see the strongest price growth in coming years are Vienna districts along the U2xU5 metro corridor, station-adjacent areas in Seestadt Aspern, and Graz neighborhoods benefiting from tram expansion and university-driven demand.
Projected annual price growth for these high-potential Austrian neighborhoods includes:
- U2xU5 station catchments (Neubaugasse, Pilgramgasse, Matzleinsdorfer Platz): Expected 4% to 6% annual growth through 2030.
- Seestadt Aspern in Donaustadt: Projected 3% to 5% steady growth as absorption continues.
- Graz transit-linked areas: Anticipated 3% to 4% annual appreciation as new tram lines complete.
The single most important catalyst expected to drive future price growth in these Austrian neighborhoods is improved public transport connectivity, which historically correlates with 10% to 15% price premiums for properties within a ten-minute walk of new metro or tram stations.
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 Do Locals and Expats Really Think About Different Areas in Austria?
Which areas in Austria do local residents consider the most desirable to live?
The areas in Austria that local residents consider most desirable to live include Vienna's Josefstadt (8th district), Alsergrund (9th district), Hietzing (13th district), Dobling (19th district), and Wahring (18th district), all known for their combination of walkability, green spaces, good schools, and quiet-but-connected atmospheres.
The main qualities making these areas desirable to locals in Austria include:
- Josefstadt (8th district): Bohemian character, proximity to City Hall, and village-like feel within the city.
- Alsergrund (9th district): University atmosphere, Danube Canal access, and excellent medical facilities nearby.
- Hietzing (13th district): Schonbrunn Palace gardens, family-friendly villas, and prestigious address.
- Dobling (19th district): Vienna Woods access, vineyards, and large houses rather than apartments.
These locally preferred areas in Austria typically attract upper-middle-class families, established professionals, and academics who prioritize quality of life over maximizing rental yields or speculative gains.
Local preferences in Austria often differ from what foreign investors target, as locals value neighborhood character and long-term livability while foreign buyers frequently focus on tourist-friendly locations or yield optimization that may not align with residential quality.
Which neighborhoods in Austria have the best reputation among expat communities?
The neighborhoods in Austria with the best reputation among expat communities are Vienna's Landstrasse (3rd district), Alsergrund (9th district), Leopoldstadt (2nd district), Dobling (19th district), and parts of Neubau (7th district), all offering a balance of international amenities and authentic Viennese living.
The main reasons expats prefer these Austrian neighborhoods over others include:
- Landstrasse (3rd district): Embassy presence, Rochusmarkt for daily shopping, and central yet residential feel.
- Alsergrund (9th district): English-friendly services, university connections, and excellent public transport.
- Leopoldstadt (2nd district): Multicultural atmosphere, Prater park access, and more affordable than the inner ring.
- Dobling (19th district): International schools, family houses, and strong expat community networks.
The expat profiles most commonly found in these popular Austrian neighborhoods include diplomatic staff and their families in Landstrasse, medical researchers and academics in Alsergrund, young international professionals in Leopoldstadt, and families with children at international schools in Dobling.
Which areas in Austria do locals say are overhyped by foreign buyers?
The areas in Austria that locals commonly say are overhyped by foreign buyers include Alpine resort towns in Tyrol and Salzburg province, Vienna's Innere Stadt (1st district) for residential purposes, and certain "Instagram-famous" Vienna addresses that command premiums beyond their practical value.
The main reasons locals believe these Austrian areas are overvalued or overhyped include:
- Alpine resort towns: Foreigners overpay without understanding second-home restrictions and resale illiquidity.
- Innere Stadt (1st district): Mostly tourist-oriented with limited daily-life amenities and very high prices.
- Trophy addresses near Stephansplatz: Noise, crowds, and limited parking that locals avoid for actual living.
What foreign buyers typically see in these Austrian areas that locals do not value as highly is the postcard appeal and "prestige address" factor, while locals prioritize practical livability, neighborhood community, and value for money over international recognition.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Austria.
Which areas in Austria are considered boring or undesirable by residents?
The areas in Austria that residents commonly consider boring or undesirable include Vienna's outer districts like Floridsdorf (21st district), Donaustadt (22nd district), and Simmering (11th district), which lack the cafe culture and walkable charm of inner Vienna despite offering better value and more space.
The main reasons residents find these Austrian areas boring or undesirable include:
- Floridsdorf (21st district): More suburban feel, fewer cultural attractions, and perceived as "across the Danube."
- Donaustadt (22nd district): New development areas like Seestadt feel planned rather than organic.
- Simmering (11th district): Industrial heritage and less picturesque streetscapes than inner districts.
However, these "boring" districts often represent excellent value for investors, as they combine some of Vienna's highest gross yields (around 4%) with strong public transport connections and steady tenant demand from local workers and families.
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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 |
|---|---|---|
| Statistik Austria House Price Index | Austria's official statistical office using land register purchase contracts. | We used it to anchor the big picture of Austrian house prices into late 2025. We treat it as the baseline reality-check against private reports. |
| Oesterreichische Nationalbank RPPI | Austria's central bank publishes an official residential property price index. | We used it to confirm price direction and speed into Q3 2025. We cross-checked it against Statistik Austria to avoid relying on one methodology. |
| BIS Series via FRED | Standardized cross-country dataset from the Bank for International Settlements. | We used it for long-run context on cycles and turning points. We relied on it only for macro trend confirmation, not neighborhood picks. |
| Austrian Economic Chamber Immobilienpreisspiegel | Professional chamber compiling market data from real estate inputs across Austria. | We used it to estimate district-level purchase prices and long-term rents. We then computed gross yields directly from those figures. |
| Vienna City Tourist Letting Rules | Official city guidance on short-term rental compliance and enforcement. | We used it to map regulatory risk for Airbnb strategies in Vienna. We flagged where enforcement risk is rising for investors. |
| RIS Mietrechtsgesetz (MRG) | Official Austrian legal portal for consolidated rent regulation law. | We used it to explain why headline yields can be misleading. We flagged where due diligence must focus on rent category and building age. |
| Wiener Linien U2xU5 Project | Official public transport operator providing confirmed infrastructure timelines. | We used it to identify neighborhoods benefiting from metro expansion. We focused on walkable station catchments for investment targeting. |
| Aspern Seestadt Development | Official project site for one of Europe's largest urban development programs. | We used it to assess Donaustadt's long-term growth potential. We analyzed phase planning to guide investor timing decisions. |
| InterNations Expat Insider Survey | Large-scale international survey measuring expat satisfaction by city. | We used it to validate Vienna's strong expat pull and identify preferred districts. We cross-referenced with neighborhood-level feedback. |
| Inside Airbnb Vienna | Transparent data project used by researchers and cities to track STR density. | We used it to identify short-term rental hotspots as a saturation proxy. We treated it as a risk overlay, not a revenue estimator. |
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