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What will happen in Vienna’s real estate market? Will prices go up or down? Is Vienna still a hotspot for foreign investors? How is Austria’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Vienna, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Property prices in Vienna's suburbs will rise as remote work becomes more popular
In 2023 and 2024, we saw a significant rise in the demand for suburban properties around Vienna. This was largely due to families looking for larger living spaces, driven by the need for home offices and more room for family activities, which became essential as remote work became more common.
Surveys from that period showed that many workers preferred remote work, at least part-time. This preference led to a desire for larger homes that could accommodate home offices, further increasing the demand for suburban properties. Additionally, the trend of remote work was supported by statistics showing that 41% of Austrian workers were in hybrid work arrangements, with 98% wanting to work remotely at least occasionally.
Moreover, the suburban areas around Vienna benefited from infrastructure developments, such as the extension of the A5 motorway, which made these areas more accessible and attractive to potential residents. This infrastructure investment, combined with the more affordable property prices compared to the city center, made suburban living an appealing option for many.
Sources: Remote Work Statistics, Monitoring of Settlement Patterns in the Vienna Urban Region
2) Short-term rental yields in Vienna will increase as tourism and business travel grow
Vienna's short-term rental yields are set to rise due to a significant increase in tourism and business travel. In 2023, the city welcomed 17,261,000 overnight stays, which was just 2% below the previous record set in 2019. This indicates a strong recovery and growth in tourism, surpassing the numbers from 2018 by more than 4.7%.
In November 2024, Vienna experienced a 12.3% increase in nights spent compared to November 2023, totaling 5.52 million nights. This surge in overnight stays suggests a growing demand for accommodations, including short-term rentals. The city's strategic positioning as a meeting destination has also contributed to this success, attracting both tourists and business travelers.
Furthermore, the Vienna Tourist Board's initiative to promote eleven notable neighborhoods under the motto “Heartbeat Streets” in 2024 aims to enhance the city's appeal and draw more visitors. This increased attention and marketing effort are likely to boost the demand for short-term rentals, as travelers seek authentic experiences in these highlighted areas.
Sources: Vienna Tourist Board, Statistik Austria
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.
3) Demand for energy-efficient homes in Vienna will grow as residents prioritize sustainability
Vienna's residents are increasingly prioritizing sustainability, and this shift is driving demand for energy-efficient homes. In recent years, the city has implemented new building regulations that require high energy efficiency standards, such as the use of district heating and renewable energy solutions. These measures are part of the Energy Zoning Plans introduced in 2019, which aim to reduce energy consumption and promote sustainable living.
Additionally, the adoption of the Passive House Standard in many new residential buildings has significantly reduced heating energy consumption, with studies showing savings of over 72% compared to low-energy houses. This focus on energy efficiency is further supported by government incentives, such as subsidies and grants for home renovations, which encourage residents to improve thermal comfort and reduce energy demand.
Public awareness about sustainable living has also grown, thanks to educational programs and media coverage on climate change. Consumer surveys reflect a preference for energy-efficient homes, and the increasing sales of eco-friendly appliances and home systems highlight the demand for sustainable products. Furthermore, the city's commitment to climate neutrality by 2040, as outlined in its Government Agreement, ensures that sustainability remains a key focus in city planning and development strategies.
Sources: Mayors of Europe, Green European Journal, Passipedia
4) Interest in Vienna's historic properties will grow as preservation efforts emphasize their cultural importance
Vienna's historic properties are gaining interest due to several key factors. First, the City of Vienna has increased funding for preservation projects, showing a strong commitment to protecting its cultural heritage. This includes a comprehensive management plan for the Historic Centre of Vienna, which aims to safeguard its Outstanding Universal Value.
Additionally, tourism statistics from 2023 show a significant interest in cultural and historical sites, with Vienna recording 17,261,000 overnight stays. The Vienna Tourist Board's efforts to promote the city's neighborhoods through campaigns like "Heartbeat Streets" further highlight the cultural and historical significance of these areas.
Moreover, government initiatives have included World Heritage protection in the building code, ensuring that new developments align with preserving the historic center. Media coverage and cultural events centered around historic properties also play a crucial role in attracting attention to Vienna's cultural heritage.
Sources: City of Vienna, Vienna Tourist Board, Time Travel Turtle
5) Demand for senior-friendly housing in Vienna will grow as the population ages
Vienna's population is projected to grow significantly over the next few decades, with a notable increase in the number of residents aged 65 and older. By 2053, more than 20% of Vienna's population will be in this age group, with a substantial rise in those aged 80 and above. This demographic shift highlights the need for more senior-friendly housing to accommodate the growing elderly population.
As life expectancy continues to improve, particularly among older men, there is a greater need for housing that supports longer, healthier lives. Seniors in Austria have expressed a strong preference for aging in place, meaning they wish to remain in their own homes as long as possible. This desire underscores the importance of developing housing that allows for independence and autonomy while providing necessary support.
Vienna already has a significant senior population, with over 400,000 residents aged 60 and over. This number is expected to grow, necessitating more age-appropriate housing options. The current supply of senior-friendly housing, particularly in the assisted living sector, is not meeting demand, with a shortfall of 24,000 residential units projected over the next decade.
Sources: Small-Scale Population Projection for Vienna 2023–2053, Senior living - demand for serviced housing is growing rapidly
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6) Property prices in Leopoldstadt will rise as it becomes a hub for innovative green architecture
In recent years, Leopoldstadt has been gaining attention as a hub for innovative green architecture, and this transformation is expected to lead to an increase in property prices. One of the key reasons is the increased investment in green architecture projects. For instance, Wien Energie, a major player in Vienna's energy sector, has been investing heavily in renewable energy projects, such as solar and wind power. By 2030, they aim to generate solar power with a capacity of 600 megawatts, which is enough to supply 250,000 households with clean energy.
Additionally, the City of Vienna has been offering government incentives for sustainable building practices. Their commitment to reducing net CO2 emissions to zero by 2040 includes significant investments in green finance frameworks. These frameworks support projects that advance the energy transition and reduce emissions, making sustainable buildings more attractive to developers and buyers alike.
There's also a growing demand for eco-friendly living spaces. People are increasingly looking for properties with outdoor spaces, like terraces and gardens, as they prioritize health and well-being in a post-pandemic world. Buildings like the Lakeview Apartments, which are built to passive house standards, are highly desirable due to their energy efficiency and excellent indoor air quality.
Successful case studies, such as the T-Center St. Marx in Vienna, demonstrate how green architecture can boost property values. This net energy-plus building generates more energy than it consumes and has transformed a former industrial site into an eco-friendly office space. Such examples highlight the potential for green architecture to enhance property values in Leopoldstadt.
Moreover, the introduction of new public transport links, like the U2 and U5 lines, is enhancing Leopoldstadt's accessibility. This increased accessibility is likely to attract more buyers, both domestic and international, further driving up property prices. As Vienna continues to focus on sustainability, international investors are showing rising interest in the city's green initiatives, which could also contribute to the district's property price increase.
Sources: Wiener Stadtwerke, Constructive Voices
7) Demand for compact living spaces will rise as the city sees more smaller households
Vienna is seeing a big change in its household makeup, with a noticeable rise in single-person households.
In 2023, Vienna had about 969,229 private households, and the number of single-person households jumped by 25.1%, while multi-person households only grew by 7.5%. This trend is expected to keep going, with predictions showing a 33.0% increase in single-person households by 2060.
Young professionals and students are flocking to Vienna, adding to the demand for smaller living spaces. The city's population is set to grow by 310,000 over the next thirty years, mainly due to international immigration and new housing projects. This growth is especially strong among young adults and families, who often look for smaller, more affordable living options.
Urban planning reports, like the First Vienna Residential Market Report 2024, point out the trend towards smaller living units. This shift is creating a need for new living spaces, which is being met by increased construction activity.
The rise of co-living and micro-apartments highlights the demand for compact living arrangements, catering to the needs of smaller households and young professionals. These options are becoming more popular as they offer flexibility and affordability.
Sources: First Vienna Residential Market Report 2024 - Wien - EHL Immobilien, Summary: Small-Scale Population Projection for Vienna 2023–2053 - Statistics Vienna
8) Suburban rental yields will drop as more people choose city living to cut down on commute times
In recent years, we've seen a noticeable shift in living preferences in Vienna, with more people opting for city living to cut down on commute times. This trend is expected to lead to a decline in suburban rental yields. One of the key factors driving this change is the projected urban population growth in Vienna. The city is expected to grow by 310,000 people over the next three decades, indicating a strong preference for city living.
Another significant factor is the increased usage of Vienna's highly efficient public transportation system. With 3 out of 10 people using public transport and more than a third commuting by walking, it's clear that residents appreciate the convenience and efficiency of city living. The satisfaction rate with public transport in Vienna is an impressive 91%, the highest among 83 European cities, highlighting the value residents place on shorter commutes and better connectivity.
Additionally, the real estate market reports have shown a shift towards urban properties, with declining rental yields and property prices in suburban areas. This shift is further supported by government policies promoting urban living and reducing suburban sprawl, such as the commitment to making Vienna climate-neutral by 2040 and the affordable €1 daily transport pass.
Sources: Global Property Guide, City of Vienna, Euronews
We have made this infographic to give you a quick and clear snapshot of the property market in Austria. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Student housing rents in Vienna will increase as more international students arrive
Vienna has become an increasingly popular destination for international students, which is contributing to rising student housing rents. The University of Vienna, for instance, saw a significant increase in international student enrollment in 2023, with 7,753 international students out of over 85,000 total students. This growing number of international students is a key factor driving demand for student accommodation.
Additionally, reports indicate that universities in Vienna are expanding their international programs. The University of Vienna renewed its partnership with the European University Institute, focusing on exchange programs and research opportunities. This expansion of international programs is likely to attract even more international students, further increasing the demand for housing.
Surveys have shown that Vienna is becoming a more popular study destination, with rental rates rising as a result. A HousingAnywhere survey noted that room rates in Vienna are among the highest in Europe, indicating a rising demand for student accommodation driven by the influx of international students. This demand is causing rental prices to increase, especially in areas with high student populations.
Sources: European University Institute, ICEF Monitor, EAIE Report
10) Rents in central Vienna will rise as more people want to live in the city
In recent years, Vienna has seen a steady increase in its population, with projections indicating a growth of 310,000 people by 2053. This growing population, particularly in districts like Leopoldstadt and Brigittenau, is driving up the demand for housing in central areas.
As more international residents and expatriates move to Vienna, the demand for urban living intensifies. The foreign-born population is increasing in almost all residential areas, which adds pressure to the housing market, especially in the central districts where new housing developments are limited.
Moreover, historical trends show that rental costs have been rising, with a notable 8.6% increase in standard rent in 2023. This trend is expected to continue as the population grows and real estate prices remain high, further pushing up rents in central districts.
Sources: Wien.gv.at, Luxury Vienna
11) Property values in Vienna's underserved areas will rise due to new public transportation expansions
Vienna's recent public transportation expansions are set to increase property values in previously underserved areas for several reasons.
Firstly, historical data shows that cities like London and Paris have experienced significant property value growth following public transport improvements. This trend suggests that Vienna could see similar benefits as it expands its network. Additionally, the expansion of the U2 underground subway connection in Aspern Seestadt has already demonstrated positive impacts on property values and resident satisfaction, indicating that improved transit access can make areas more desirable.
Moreover, the investment of over 850 million euros in Vienna's public transport network, including modernization and expansion efforts, is expected to boost demand for housing near these hubs. This is supported by surveys showing that buyers prefer properties with good public transport access, as seen in the increased interest in the Aspern Seestadt project. Furthermore, the expansion is anticipated to reduce commute times and enhance accessibility, making previously less accessible areas more attractive to potential buyers.
Experts also predict economic growth in newly connected areas due to improved public transport, which could further drive up property values. The Austrian capital's goal to be climate neutral by 2040, with public transport playing a key role, underscores the importance of these investments. Additionally, municipal projections suggest that areas with improved public transport will experience population growth, further increasing property values as these areas become more desirable.
Sources: Azure Magazine, Vienna Business, Advantage Austria
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12) More Asian buyers will invest in Vienna’s real estate market seeking stability in Europe
Vienna is expected to see a rise in foreign investment from Asian buyers seeking stable European markets for several reasons. First, Vienna is known for its stable economic and political environment, which is a key factor for Asian investors who are cautious about market risks. This stability makes Vienna an attractive destination for those looking to invest in Europe.
Additionally, there is a growing interest among Asian investors to diversify their portfolios with European assets. This interest is driven by the desire for stable financial, political, and legal environments, as well as high-quality assets. Vienna, with its reputation for stability, fits well into this investment strategy.
Moreover, the increasing attendance of Asian investors at European property expos suggests a growing interest in European real estate markets. This trend is likely to continue as Asian investors seek stable and resilient markets like Vienna. The growth in international real estate agencies targeting Asian buyers further indicates an increasing interest in European real estate markets, including Vienna.
13) More foreign buyers from politically unstable countries will invest in Vienna for safety
Vienna has become increasingly attractive to foreign buyers from countries with unstable political climates, primarily due to its political stability and high quality of life. In 2023, Vienna saw a significant foreign net migration, with 21,959 more people moving to the city than leaving it. This trend indicates a growing interest in Vienna as a safe and stable place to live and invest.
Foreign ownership in Vienna is also notable, with the city owning nearly half of the rental properties, which are part of its social housing. This suggests a robust foreign ownership structure, particularly in rental apartments, making it appealing for investors seeking stable returns. Additionally, Vienna's real estate market is experiencing increased demand from international students and professionals, boosting rental yields and driving up prices, which further attracts foreign buyers.
Global economic trends show that political instability often leads to capital flight, with investors seeking stable markets like Vienna. The ongoing war in Ukraine, for example, has led to significant migration and investment shifts, highlighting Vienna's appeal as a safe investment destination. Moreover, international investors prefer stable markets with secure property rights, and Vienna's favorable regulations and high quality of life make it an attractive choice.
Sources: Wien.gv.at, Global Investments, EHL Publications
14) More investors will be drawn to Ottakring as it gains a reputation for being a lively, multicultural area
Ottakring is quickly becoming a hotspot for investors due to its vibrant and multicultural atmosphere.
In recent years, property prices in Ottakring have been climbing, with the average apartment now costing 5542 euros per square meter. This trend highlights the growing interest and potential for solid investment returns in the area.
The district is alive with new businesses and cultural venues, making it a magnet for those seeking dynamic and diverse investment opportunities. Ottakring's population is notably diverse, with a significant portion of residents being of foreign origin, which adds to its multicultural appeal.
One of Ottakring's key advantages is its connection to Vienna's excellent public transportation system, which makes it easily accessible and even more attractive to potential investors. The district's reputation has evolved from a working-class neighborhood to a desirable place to live, enhancing its investment appeal.
Insider knowledge suggests that Ottakring's transformation is not just about real estate; it's about lifestyle. The area is known for its vibrant street life, with cafes and markets that reflect its multicultural roots, drawing in both locals and tourists.
Investors are particularly interested in Ottakring because of its potential for growth and the rich cultural tapestry that defines the neighborhood. This makes it a unique and promising area for those looking to invest in Vienna's real estate market.
Sources: Vigo Immobilien, City of Vienna
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.
15) Properties in Vienna's busy districts will become more appealing due to noise reduction projects
In 2023 and 2024, Vienna saw significant efforts in noise reduction projects, particularly in its bustling districts. These initiatives have been pivotal in making properties in these areas more appealing. For instance, the sale of the Apple House on Kärntner Strasse for a record-breaking EUR 31,000 per square meter highlights how prime properties, especially those benefiting from noise reduction, have maintained and even increased their value.
Moreover, urban planning reports from Vienna emphasize the critical role of noise reduction in enhancing urban quality and social balance. This focus on creating quieter, more livable environments directly contributes to the attractiveness of properties in these areas. The EHL Investment Property Report further supports this by noting that greening streets and reducing noise through trees can significantly boost the value of apartments and investment properties in inner-city locations.
Additionally, the Vienna Airport Noise Protection Program, with its substantial investment of up to 24 million euros over eight years, underscores the government's commitment to noise reduction. This initiative aims to lower nighttime noise levels to 45 dB(A) and daytime levels to 54 dB(A), which are stricter than the legal minimum requirements. Such measures not only improve the quality of life but also enhance the desirability and value of properties in the affected areas.
Sources: EHL Investment Property Report, Aviation Direct, Urban Planning 2025
16) Eco-friendly residential projects in Vienna will grow as new tax incentives for green buildings are introduced
New tax incentives for green buildings are set to significantly boost the development of eco-friendly residential projects in Vienna. This is largely because the city has committed to reaching climate neutrality by 2040, which includes substantial investments in green building projects. The Government Agreement emphasizes “affordable living of the future,” focusing on refurbishing existing buildings and constructing new affordable housing with strict environmental criteria.
In 2023 and 2024, Vienna saw a rise in eco-friendly construction activities, with around 80 retrofitting and refurbishment projects underway in social housing, amounting to an investment of approximately 800 million euros. This trend indicates a growing momentum in sustainable construction, which is likely to be further propelled by the new tax incentives. Additionally, the popularity of projects like the Wohnprojekt, which emphasizes environmental friendliness and community living, reflects a consumer preference for sustainable living.
The surging sales of eco-friendly building materials, as seen in projects like the Wohnprojekt and the WohnBAUM housing program, suggest a growing demand for sustainable construction solutions. Moreover, the city’s initiatives, such as the WohnBAUM housing program, demonstrate a strong governmental push towards sustainable urban development, aligning with the new tax incentives to create a favorable environment for eco-friendly residential projects.
Sources: Green European Journal, Green Is You, Mayors of Europe
17) Fewer foreign buyers will invest in Vienna due to stricter EU rules on non-EU buyers
The European Union is making it tougher for non-EU buyers to purchase real estate in its member countries.
Take Denmark, for example, where foreign buyers need approval from the Danish Ministry of Justice to buy property. This kind of rule is a big deal because it can make non-EU investors think twice about buying in places like Vienna, fearing similar red tape.
In Switzerland, non-EU buyers face limits on the type and size of land they can purchase. These kinds of restrictions are becoming more common across the EU, making it harder for non-EU investors to navigate the property market.
Reports and stories from the field show that administrative challenges are on the rise for non-EU buyers. These hurdles can be a real headache, discouraging potential investors from diving into Vienna's real estate scene.
With these increasing barriers, it's no surprise that foreign interest in Vienna's real estate is expected to decline. The EU's tighter regulations are making it less appealing for non-EU buyers to invest in the region.
As these trends continue, non-EU investors might start looking elsewhere, avoiding the complexities of buying property in the EU. This shift could significantly impact Vienna's real estate market.
Sources: Idealista, eSales International, Wise
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.