What is the average rent per square meter in Vienna?

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

Yes, the analysis of Vienna's property market is included in our pack

What are the current rent prices per square meter in Vienna's main districts?

Vienna's rental market shows significant price variations across its 23 districts, with the most expensive areas commanding more than double the rates of emerging neighborhoods.

The prestigious Innere Stadt (1st district) leads the market at €22.50 per square meter, primarily due to its historic charm and central location. Döbling (19th district) follows at €18.80 per square meter, attracting affluent families seeking upscale residential areas with green spaces.

Mid-tier districts like Landstraße (3rd) and Wieden (4th) offer balanced options at €16.50 and €15.20 per square meter respectively, providing good access to business centers while maintaining reasonable pricing. These areas particularly appeal to working professionals who value proximity to commercial districts.

The most affordable investment opportunities exist in Favoriten (10th district) at €12.20 per square meter and Floridsdorf (21st district) at €11.80 per square meter. These outer districts are experiencing growing demand as infrastructure development and urban expansion make them increasingly attractive to renters seeking value.

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How do rental prices differ between property types like studios, apartments, and luxury units?

Property type significantly impacts rental rates in Vienna, with smaller units commanding premium prices per square meter due to higher demand and limited supply.

What is the total monthly cost including utilities and service charges?

The total housing cost in Vienna extends significantly beyond base rent, with utilities and service charges adding substantial monthly expenses that renters must budget for.

For a typical 50-square-meter one-bedroom apartment with base rent of €1,045 per month, tenants should expect additional costs of approximately €150 monthly for utilities including heating, electricity, water, and waste management. Service charges, covering building maintenance, concierge services, and common area upkeep, typically add €1.50 to €3.00 per square meter monthly.

This brings the total effective monthly cost to approximately €1,400 for a standard one-bedroom unit, representing a 34% increase over the base rent. Larger apartments and those in premium buildings with enhanced services can see even higher additional costs, particularly in districts like Innere Stadt and Döbling where building maintenance standards are elevated.

Property investors should factor these additional costs when calculating rental yields, as they directly impact tenant affordability and market positioning. The all-inclusive cost structure makes Vienna's rental market more expensive than base rent figures suggest, but still competitive compared to other major European capitals.

What are the rental yields for different districts and property types?

Vienna's rental yields vary significantly across districts and property types, with outer districts offering higher gross returns while central areas focus on capital appreciation potential.

Favoriten (10th district) leads with gross yields of 4.43%, making it the most attractive area for income-focused investors seeking immediate returns. The combination of affordable purchase prices around €4,500 per square meter and solid rental demand from students and young families creates this yield advantage.

Floridsdorf (21st district) offers 3.84% gross yields, benefiting from ongoing infrastructure development and emerging neighborhood status that attracts value-conscious renters. Central districts like Döbling show lower 3.03% yields but compensate with stronger capital growth prospects and premium tenant profiles.

Net yields typically run 1.5-2 percentage points lower than gross figures after accounting for taxes, maintenance, vacancy periods, and management costs. This means actual investor returns range from 1.8% in premium central districts to 2.8% in high-yield outer areas, requiring longer investment horizons to achieve meaningful returns after acquisition costs.

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How have rental prices and yields changed over recent years?

Vienna's rental market has experienced substantial growth over the past five years, with rents increasing by 30% since 2020, representing an average annual growth rate of 4.9%.

The most recent 12-month period shows accelerated growth of 9% in Vienna, outpacing many European cities and reflecting the ongoing supply-demand imbalance. This compares to 13% growth in Salzburg, indicating that rental pressure extends beyond the capital to other major Austrian cities.

Several factors drive this consistent rental growth, including Austria's population increase of approximately 30,000 people annually, concentrated in urban areas like Vienna. Additionally, construction activity has dropped by 60% between 2024 and 2025, severely constraining new supply while demand continues rising from both domestic migration and international relocation.

Rental yields have remained relatively stable despite price increases, as property purchase prices have risen proportionally. However, investors entering the market in outer districts during 2020-2021 have benefited from both rental income growth and capital appreciation, particularly in areas like Favoriten and Floridsdorf that have seen infrastructure improvements.

What are the forecasts for rental prices and yields in Vienna?

Vienna's rental market forecasts indicate continued upward pressure on prices driven by structural supply deficits and sustained population growth through the next decade.

Short-term projections for the next 12 months suggest rental increases of 5%, supported by the ongoing supply shortage and limited new construction completions scheduled for 2025. This represents a slight moderation from 2024's 9% growth but remains well above historical averages.

Five-year forecasts predict cumulative rental growth of 20-25%, assuming current demographic trends continue and construction activity remains constrained. Population growth of 30,000 residents annually in Vienna, combined with reduced investor activity due to KIM-VO regulations, creates a structural imbalance favoring landlords.

Ten-year projections suggest that supply constraints will persist, particularly given the lengthy planning and construction processes for new residential developments. This long-term undersupply scenario supports rental growth sustainability, though actual rates may moderate as affordability constraints begin impacting demand in some market segments.

What are current mortgage rates and financing conditions for investors?

Buy-to-let mortgage rates in Austria currently range from 3.5% to 4.5%, representing historically elevated levels that significantly impact investor returns and market dynamics.

The Austrian Financial Market Authority's KIM-VO regulations require down payments of 25-40% for investment properties, substantially higher than historical norms and reducing the pool of potential investors. Banks additionally scrutinize rental income projections more carefully, often requiring conservative vacancy assumptions in yield calculations.

Loan-to-value ratios for investment properties typically max out at 75%, compared to 80-90% available to owner-occupiers, further increasing capital requirements for investors. Interest-only payment options remain available but are increasingly restricted to established investors with strong financial profiles and diversified property portfolios.

These financing conditions have reduced speculative investor activity, contributing to the supply constraints driving rental growth. However, qualified investors with adequate capital can still access attractive terms, particularly for properties in established districts with proven rental demand.

What taxes and costs should investors expect when buying rental property?

Property acquisition in Austria involves substantial upfront costs that investors must factor into their return calculations and financing requirements.

1. Transfer tax (Grunderwerbsteuer): 3.5% of purchase price, paid by the buyer and non-negotiable across all property types and locations
2. Notary and registration fees: 1-2% of purchase price covering legal documentation, title transfers, and land registry updates
3. Real estate agent commission: 3-5% of purchase price, typically split between buyer and seller but negotiable depending on market conditions
4. Legal and survey costs: 0.5-1% for professional due diligence, building inspections, and legal representation during the transaction process
5. Total acquisition costs: 8-12.5% of purchase price, meaning a €500,000 property requires €40,000-€62,500 in additional costs beyond the purchase price

Ongoing tax obligations include rental income tax at progressive rates up to 50%, though depreciation allowances and expense deductions can significantly reduce taxable income. Property taxes remain relatively low compared to other European countries, typically representing 0.1-0.2% of property value annually.

What are vacancy rates and typical time-on-market for rental properties?

Vienna's rental market demonstrates exceptional tightness with vacancy rates below 2% citywide, indicating severe supply constraints and strong underlying demand across all property types.

Quality rental properties typically remain on the market for less than 14 days, with well-presented units in desirable districts often receiving multiple applications within the first week of listing. This rapid absorption rate reflects both limited supply and active tenant demand, particularly for properties priced competitively within their respective market segments.

Studios and one-bedroom apartments experience the shortest marketing periods, often renting within 5-7 days due to high demand from students, young professionals, and newcomers to the city. Larger family-oriented properties in outer districts may take slightly longer but rarely exceed 21 days on the market when priced appropriately.

These market conditions favor landlords significantly, allowing for selective tenant screening and reduced concession pressure. However, the tight market also means that any pricing errors can result in longer vacancy periods, making accurate market positioning crucial for investment success.

It's something we develop in our Austria property pack.

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.

Who are the typical renters in Vienna's market?

Vienna's rental market serves a diverse tenant base with distinct preferences and requirements that vary significantly across districts and property types.

Students represent 38% of renters in areas like Leopoldstadt, driven by proximity to universities and relatively affordable housing options. This demographic typically seeks smaller units, shared accommodations, or studios, and shows high tolerance for older buildings in exchange for lower rents and good transport connections.

Working professionals constitute 45% of the rental market, concentrated in districts like Landstraße and Wieden where business centers and corporate offices create demand for quality housing. These tenants prioritize modern amenities, reliable internet connectivity, and convenient commuting options, often willing to pay premium rents for well-located properties.

Expatriate families and international workers represent 17% of Vienna's rental market, typically seeking larger apartments in family-friendly districts like Döbling or Hietzing. This segment often requires furnished accommodation, international school access, and English-speaking property management, commanding premium rents for suitable properties.

The remaining tenant base includes local families, retirees downsizing from owned properties, and temporary residents. Each segment has specific requirements that successful rental investors must understand to optimize their property positioning and tenant selection.

Which areas and property types offer the best investment opportunities?

Vienna's current market offers distinct investment strategies depending on investor priorities, risk tolerance, and return expectations.

How does Vienna compare to other major European cities?

Vienna's rental market positioning within Europe shows competitive advantages in stability and growth potential, though yields lag behind some emerging markets.

Rental rates in Vienna average €20.42 per square meter for central one-bedroom apartments, positioning between Berlin at €17.50 and higher-cost cities like Munich or Paris. This moderate pricing maintains accessibility while reflecting the city's quality infrastructure and cultural amenities.

Gross rental yields of 3.98% in Vienna compare favorably to Berlin's 4.2%, Prague's 5.1%, and Budapest's 5.8%. However, Vienna offers superior market stability, transparent legal frameworks, and lower political risk compared to higher-yielding markets that may face regulatory uncertainties.

Vienna's rental growth trajectory of 9% annually outpaces most Western European cities, while vacancy rates below 2% indicate stronger demand fundamentals than markets like Berlin or Amsterdam where supply has increased more rapidly. The combination of controlled supply, steady population growth, and economic stability positions Vienna as a premium investment destination for risk-averse investors prioritizing long-term wealth preservation over maximum current yields.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Nestpick Vienna Rental Market Analysis
2. Global Property Guide Austria Price History
3. Engel & Völkers Vienna Property Prices
4. Kroy Immobilien Vienna Market Report 2025
5. Global Property Guide Austria Rental Yields
6. InvestRopa Vienna Rental Yields
7. CBRE Austria Real Estate Market Outlook 2025
8. Vigo Immobilien Austria Mortgage Guide 2025
9. PropTech Buzz Austria Rent Records
10. InvestRopa Vienna Property Taxes