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Yes, the analysis of Vienna's property market is included in our pack
Thinking about buying a 3-bedroom apartment in the Innere Stadt? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other districts like Neubau or Leopoldstadt where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Austria Property Pack.
Will property prices increase in Vienna in 2025?
Yes, property prices in Vienna are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Vienna remains one of the most attractive cities in Europe for both domestic and international investors.
Sure, there are some economic challenges like inflation and rising interest rates, but the main drivers behind Vienna’s price growth remain strong.
Demand, especially in the prime central areas, continues to outstrip supply, making any major price dips unlikely. Additionally, Vienna's reputation as a cultural and economic hub continues to attract buyers from around the world.
Signals pointing to a property price increase in Vienna
Here are some factors suggesting prices could increase:
The ongoing shortage of housing construction permits in Vienna means fewer new developments will enter the market, particularly in highly desirable areas. With demand remaining robust, this persistent lack of supply is likely to push up prices, especially in the city’s central districts.
Vienna's strong economic performance and low unemployment rates are expected to continue into 2025, providing a stable environment for property investment and supporting price growth.
The city's commitment to sustainable urban development and green spaces is attracting environmentally conscious buyers, which is expected to increase demand for properties in eco-friendly neighborhoods.
Vienna's excellent quality of life, consistently ranked among the highest in the world, continues to draw both domestic and international buyers, maintaining strong demand for residential properties.
The expansion of Vienna's public transportation network is set to improve connectivity across the city, making previously less accessible areas more attractive to buyers and potentially increasing property values in those regions.
Vienna's status as a cultural and educational hub, with numerous universities and cultural institutions, continues to attract students and professionals, bolstering demand for rental properties and investment opportunities.
Signals pointing to a property price decrease in Vienna
Here are some factors suggesting prices could fall:
Rising inflation and living costs are putting pressure on household budgets across Austria, and Vienna is no exception. As essential goods and services become more expensive, some buyers may be priced out of the market, potentially reducing demand for lower and mid-tier properties.
Higher mortgage interest rates, which have increased from the historically low levels seen in recent years, are making it more challenging for buyers to secure affordable financing. This could particularly impact those looking to purchase second homes or investment properties, potentially cooling off demand in the broader market.
Economic uncertainties in the broader European market could impact investor confidence, leading to a more cautious approach to property investment in Vienna, which might temper price growth.
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If property prices go up in Vienna, how much would they increase by?
If real estate prices in Vienna were to rise in 2025, the increase would likely be around 3% to 6% of their 2024 values.
Typically, real estate in stable, mature markets like Vienna appreciates by approximately 2% to 6% annually over the long term. However, fluctuations can occur depending on factors such as district, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in the Innere Stadt for 850,000 euros today, don't be surprised if it's priced between 875,500 and 901,000 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Viennese real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 2%, 4%, and 6%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (2% increase) | Price in 2025 (4% increase) | Price in 2025 (6% increase) |
|---|---|---|---|---|
| Historic Apartment (60 sqm / 646 sqft) | €900,000 | €918,000 | €936,000 | €954,000 |
| Modern Apartment (75 sqm / 807 sqft) | €1,200,000 | €1,224,000 | €1,248,000 | €1,272,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | €2,500,000 | €2,550,000 | €2,600,000 | €2,650,000 |
| Studio (30 sqm / 323 sqft) | €450,000 | €459,000 | €468,000 | €477,000 |
| Loft (80 sqm / 861 sqft) | €1,600,000 | €1,632,000 | €1,664,000 | €1,696,000 |
| Townhouse (150 sqm / 1,615 sqft) | €3,500,000 | €3,570,000 | €3,640,000 | €3,710,000 |
| Investment Property (50 sqm / 538 sqft) | €750,000 | €765,000 | €780,000 | €795,000 |
Everything you need to know is included in our Property Pack for Vienna
If real estate prices go up in Vienna, which areas are likely to see the biggest increases?
Today, people who want to move to Vienna desire the charm of its historic architecture, but they also want modern conveniences and vibrant social scenes, which Neubau delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Leopoldstadt has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Viennese market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Neubau (7th district) | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Innere Stadt (1st district) | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Vienna. |
| Leopoldstadt (2nd district) | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Donaustadt (22nd district) | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Währing (18th district) | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Ottakring (16th district) | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Mariahilf (6th district) | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Favoriten (10th district) | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Hietzing (13th district) | Medium-High | Its proximity to Vienna's city center, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Simmering (11th district) | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Döbling (19th district) | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Alsergrund (9th district) | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Vienna
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Vienna?
In 2025, Vienna real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Vienna are seeing increased interest. Proximity to green spaces like the Vienna Woods and quality schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Vienna, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Vienna's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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