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Vienna's property market shows mixed signals in June 2025, with overall prices slightly declining while prime districts continue to see significant appreciation.
As we reach mid-2025, Vienna's residential property market presents a complex picture. While the citywide average experienced a 2.08% year-on-year decline in Q4 2024, marking the seventh consecutive quarter of decrease, prime and luxury segments in districts like Innere Stadt and Döbling have surged by 5-15% over the past 12 months.
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Vienna's property market in 2025 displays a dual nature: citywide prices have stabilized after moderate declines, while prime districts continue appreciating strongly.
The market is characterized by severe supply shortages, with only 1,800 new rental apartments expected in 2025, creating upward pressure on both prices and rents despite economic headwinds.
| Metric | Current Status (June 2025) | Year-on-Year Change |
|---|---|---|
| Average Price per sqm (Vienna) | €5,500 | -2.08% |
| Prime Districts (1st District) | €24,977/sqm | +29.8% |
| Mortgage Rates | 3.9% | Up from 1.3% in 2022 |
| New Rental Completions | 1,800 units | -60% vs 2024 |
| Transaction Volume (Condos) | €3.5-4.2 billion | Up from €2.96 billion |
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.
What is the current average price per square meter in Vienna as of June 2025?
The average price per square meter for residential properties in Vienna stands at approximately €5,500 as of June 2025.
This represents a stabilization after a period of moderate decline. According to the official residential property price index, Vienna experienced a 2.08% year-on-year decrease in Q4 2024, marking the seventh consecutive quarter of decline—the longest since the 2000s.
However, the market shows significant variation across districts. Prime locations in the Innere Stadt (1st District) command prices exceeding €10,000 per square meter, with luxury properties reaching €25,000–30,000 per square meter. In February 2025, Innere Stadt apartments averaged €24,977 per square meter, representing a remarkable 29.8% increase from the previous year.
Suburban districts like Floridsdorf and Donaustadt offer more affordable options, with prices ranging from €3,500–5,000 per square meter. The median price for apartments across Vienna is €476 per square foot (approximately €5,112 per square meter), while houses command €607 per square foot (€6,534 per square meter).
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How have Vienna property prices changed over the past 12 months?
Vienna's residential property market has shown mixed signals over the past 12 months, with overall trends masking significant variations by segment.
The citywide average saw a slight decrease, with the residential property price index falling by 2.08% year-on-year in Q4 2024. This marks the seventh consecutive quarter of decline, representing the longest downward trend since the 2000s.
Despite this general decline, prime and luxury segments have experienced substantial growth. The most prestigious districts—including the 1st, 13th, 18th, and 19th districts—saw price increases of 5–15% in the past 12 months. The Innere Stadt (1st District) recorded particularly strong growth, with average prices jumping 29.8% to reach €24,977 per square meter.
Transaction volumes tell a story of renewed market activity. The condominium segment is expected to reach €3.5–4.2 billion in 2024, up significantly from €2.96 billion in 2023. This increased activity suggests that while prices have moderated in some areas, buyer interest remains strong, particularly in premium locations.
The divergence between overall market trends and luxury segment performance reflects Vienna's increasingly bifurcated market, where location and property quality are becoming ever more critical determinants of value.
Which Vienna districts are experiencing the fastest price increases in 2025?
Several Vienna districts are experiencing significant price appreciation in 2025, driven by different factors.
| District | Price Trend | Key Drivers |
|---|---|---|
| Innere Stadt (1st) | High increase (+29.8%) | UNESCO heritage, limited supply, luxury demand |
| Döbling (19th) | High increase | Premium segment, international buyers, embassy quarter |
| Hietzing (13th) | High increase | Green spaces, premium residential areas |
| Neubau (7th) | High increase | Luxury developments, international appeal |
| Margareten (5th) | Rising | Urban renewal, infrastructure upgrades |
| Leopoldstadt (2nd) | Medium-high | Gentrification, new transport links, waterfront development |
Margareten (5th district) is particularly highlighted for future growth potential due to extensive urban renewal projects and infrastructure improvements. The district is undergoing significant transformation that's attracting younger professionals and families.
Leopoldstadt is emerging as a hotspot due to major developments including the LeopoldQuartier, scheduled for completion in 2025 as Europe's first urban district built entirely using wood-hybrid construction. The MARINA TOWER and upcoming waterfront projects are transforming this area into a premium residential location.
What are the current mortgage rates in Vienna and how do they affect prices?
Mortgage rates in Vienna averaged 3.9% for new loans in 2024, representing a significant increase from the historic low of 1.3% in 2022.
This sharp rise in borrowing costs has profoundly impacted affordability. Monthly mortgage payments for a typical €250,000 loan have increased by up to 30% compared to 2022 levels. The European Central Bank's main rate peaked at 4.5% in late 2024, though recent cuts have begun to ease pressure on borrowers.
The impact on the market has been substantial. New mortgage approvals across Austria and the Eurozone dropped sharply, with the Eurozone seeing a 35% decline from 2022 to 2024. This reduced borrowing capacity has contributed to the overall price moderation seen in Vienna's residential market.
However, there's optimism for improvement. ECB rate cuts in late 2024 have started to improve affordability conditions, though average mortgage rates are expected to rise slightly in the short term due to the lag in rate transmission. The end of the KIM regulation in mid-2025 is expected to ease borrowing restrictions further, potentially supporting renewed demand.
Despite higher rates, transaction volumes in Vienna's condominium market are projected to reach €3.5–4.2 billion in 2024, suggesting that while financing has become more expensive, it hasn't frozen the market entirely.
How severe is the housing supply shortage in Vienna for 2025?
Vienna faces an unprecedented housing supply crisis in 2025, with new construction at historic lows.
Only 1,800 new rental apartments are expected to be completed in 2025, representing a dramatic 60% decrease from 2024 levels. This sharp decline in new supply comes at a time when Vienna's population continues to grow, creating a significant supply-demand imbalance.
The shortage extends beyond rental properties. Overall residential completions in 2025 are significantly below previous years, with the construction sector still recovering from a deep two-year slump. High inflation has led to increased land and construction costs, causing many property developers to postpone projects originally planned for 2023-2024.
Some large-scale projects are underway, including developments in Aspern Seestadt and the Nordbahnviertel quarter, but these are insufficient to meet current demand. The city also faces a substantial renovation backlog, particularly in older buildings, which further constrains the available quality housing stock.
This severe supply shortage is creating upward pressure on both purchase prices and rents, particularly in desirable districts. Analysts warn that without significant reforms to address bureaucracy and support new construction, the structural shortage could lead to further price and rent increases in the coming years.
What property types are seeing the biggest price surge in Vienna?
Luxury apartments in prime locations are experiencing the most significant price appreciation in Vienna's 2025 market.
Premium properties in the 1st District and other prestigious areas like Döbling are seeing exceptional growth. Luxury apartments average €1.5 million, with some listings reaching €3–8 million. The scarcity of high-end properties in these locations, combined with strong demand from both domestic and international buyers, has pushed prices up substantially.
Tech-smart and energy-efficient properties represent another rapidly appreciating segment. Vienna residents are increasingly prioritizing sustainability, driving demand for homes with district heating, renewable energy solutions, and high energy efficiency standards. These properties are particularly popular among young professionals and environmentally conscious families.
New builds, despite their scarcity, command premium prices due to high construction and regulatory costs. The limited supply of new construction has shifted demand toward existing properties in central locations, but when new developments do come to market, they achieve top prices.
Family-sized homes in suburban areas with good access to green spaces are also seeing increased demand. The continued influence of remote work trends has made larger homes in areas like the Vienna Woods periphery more attractive, driving price growth in these traditionally more affordable segments.
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What are property price forecasts for Vienna in 2026?
Most analysts expect Vienna's property market to transition from stabilization to moderate growth in 2026.
The consensus among real estate experts is that the period of falling prices will end in 2025, with moderate increases likely from 2026 onward. This optimistic outlook is based on several factors: improving financing conditions as ECB rate cuts take effect, rising incomes with wage growth that exceeded 8% in 2024, and continued population growth.
Price increases of 3% to 6% are projected for 2026, meaning a property valued at €850,000 today could be worth between €875,500 and €901,000 by next year. However, growth rates will vary significantly by district and property type, with prime locations expected to outperform the broader market.
The Austrian economy is forecast to grow by 1.4% in 2026, up from 1% in 2025, providing a supportive macroeconomic backdrop. The construction sector is expected to recover from its slump, aided by monetary easing and government housing stimulus packages.
However, the structural supply shortage will continue to exert upward pressure on prices. With Vienna's population projected to grow by 310,000 by 2053, mainly due to immigration and household fragmentation, long-term demand fundamentals remain strong.
How does Vienna's population growth impact property prices?
Vienna's robust population growth is a fundamental driver of property demand and prices in 2025.
The city's population is projected to increase by 310,000 by 2053, driven primarily by immigration and changing household structures. Single-person households are expected to increase by 33% by 2060, creating additional demand for smaller residential units even without overall population growth.
International migration plays a crucial role in shaping demand. The influx of international students, expatriates, and young professionals is particularly strong, increasing demand for both rental properties and smaller, affordable units for purchase. Studies show that immigrants with higher education and longer residence periods are increasingly likely to buy property, contributing to purchase demand.
Vienna's demographic dynamics create particularly acute pressure in certain market segments. The growing number of single-person households drives demand for one and two-bedroom apartments, while family formation among long-term residents sustains demand for larger properties in suburban areas.
The mismatch between population growth and housing supply is stark. With only 1,800 new rental apartments expected in 2025 against continued population increases, the supply-demand imbalance will likely persist, supporting property values despite economic headwinds.
Which property locations offer the best value in Vienna right now?
Several Vienna districts offer compelling value propositions for different buyer profiles in June 2025.
- Margareten (5th District) - Currently undergoing extensive urban renewal with prices still below prime districts. Infrastructure upgrades and improved connectivity make this an attractive option for investors seeking appreciation potential.
- Floridsdorf (21st District) - With prices ranging from €3,500–5,000 per square meter, this suburban district offers affordability while maintaining good public transport connections to the city center.
- Donaustadt (22nd District) - Vienna's largest district provides diverse options from affordable apartments to family homes, with ongoing development projects enhancing long-term value.
- Parts of Ottakring (16th District) - Selected areas offer good value with ongoing gentrification, particularly appealing to younger buyers seeking character properties at reasonable prices.
- Liesing (23rd District) - Southern location with green spaces and family-friendly amenities, offering better square meter value than central districts while maintaining quality of life.
When evaluating value, consider that gross rental yields vary significantly by district. While Innere Stadt offers prestige, rental yields there range from only 1.14% to 1.82%. In contrast, districts like Donaustadt, Floridsdorf, and Favoriten can generate yields from 2.38% to 6.87%, making them more attractive for investment purposes.
What government policies are affecting Vienna property prices in 2025?
The new Austrian government program (2025-2029) includes several measures directly impacting Vienna's property market.
Tax reforms feature prominently, with stricter rules on share deals in real estate transactions aimed at generating an additional €200 million in tax revenue. This change particularly affects larger property transactions and institutional investors, potentially reducing speculative activity.
First-time buyers receive support through the planned abolition of land transfer tax, making property purchases more affordable for this crucial market segment. The government is also reviewing building standards to reduce construction costs and support affordability.
Rental market interventions include the suspension of indexing for old building rents and proposals for stricter rent caps. While intended to protect tenants, analysts warn these measures could exacerbate supply shortages by discouraging new rental construction.
The end of the KIM regulation in mid-2025 represents a significant policy shift. This change is expected to ease borrowing restrictions, potentially releasing pent-up demand and supporting price growth in the second half of 2025.
Environmental policies also influence the market. Vienna's commitment to becoming climate-neutral by 2040 drives demand for energy-efficient properties and creates renovation requirements for older buildings, affecting both prices and marketability.
How do current inflation levels impact Vienna's property market?
Inflation remains elevated at 3.3% in Q1 2025, with core inflation at 2.9%, creating complex effects on Vienna's property market.
High inflation has significantly increased construction costs, contributing to the 60% decline in new rental completions expected for 2025. Developers face squeezed margins as material and labor costs rise faster than potential sales prices, leading many to postpone projects.
However, real estate traditionally serves as an inflation hedge, attracting investors seeking to preserve purchasing power. This defensive buying supports demand, particularly for tangible assets like property in prime locations. The inflation environment has created a flight to quality, benefiting Vienna's luxury segment while pressure mounts on affordable housing.
Wage growth, which exceeded 8% in 2024, partially offsets inflation's impact on affordability. As wages are expected to moderate but remain positive in 2025-2026, purchasing power should gradually improve, supporting property demand.
The European Central Bank's response to inflation through interest rate policy has been the primary channel affecting property prices. With inflation showing signs of moderation, further ECB rate cuts are anticipated, which should improve financing conditions and support property values.
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Are foreign buyers still active in Vienna's property market in 2025?
Foreign buyers remain a significant force in Vienna's property market, particularly in the luxury segment.
In the high-end residential market, international buyers represent approximately 40% of purchasers, with strong interest from Eastern European countries, Switzerland, the United States, the Middle East, and Hong Kong. The Innere Stadt's "super-prime" area attracts the most diverse set of foreign buyers.
Recent market reports indicate that international investors are expected to return more prominently after previous years' domination by Austrian investors and private buyers. The stabilization of prices and improving economic outlook make Vienna increasingly attractive to foreign capital.
Vienna's consistent ranking as one of the world's most liveable cities continues to draw international buyers seeking both investment returns and quality of life. The city's stable political environment, excellent infrastructure, and cultural offerings remain key attractions.
Government policies remain relatively welcoming to foreign investment compared to some other European capitals, though the new stricter rules on share deals may affect some institutional foreign investors. Individual foreign buyers face no significant restrictions in purchasing residential property.
The weakening of the Euro against certain currencies has made Vienna property more affordable for some international buyers, potentially supporting demand from markets with stronger currencies.
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.
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.
Based on our comprehensive analysis of Vienna's property market in June 2025, the answer is: Yes - property prices in Vienna are going up, but with important nuances.
While the overall market experienced a slight correction in 2024, prime districts are seeing substantial appreciation, and most analysts expect moderate growth to resume from 2026 onwards. The combination of severe supply shortages, continued population growth, and improving financing conditions supports a positive outlook despite current economic headwinds.
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Sources
- Vigo Immobilien - Austrian Real Estate Market Trends 2025
- Kroy Immobilien - Vienna Real Estate Market 2025
- Engel & Völkers - Vienna Residential Market Report
- Global Property Guide - Austria Price History
- EHL Market Report Vienna
- Raiffeisen Bank International - Market Analysis
- Vienna.at - Housing Market Crisis Report
- Deloitte - Austrian Government Program 2025-2029
- Oesterreichische Nationalbank - Property Price Statistics
- CBRE - Austria Real Estate Market Outlook 2025