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What is happening in Vienna’s real estate market? Are prices on the rise or decline? Is the city still a magnet for international investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers alike, from the historic center to the vibrant outskirts. Perhaps you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Viennese real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
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1) Central Vienna will see higher rental yields as demand for short-term rentals grows among tourists and business travelers
Rental yields in central Vienna are on the rise as more tourists and business travelers flock to the city.
In 2023, Vienna welcomed about 5.8 million international visitors, making up a significant portion of Austria's total tourist arrivals. This influx is a clear sign that the demand for places to stay, especially short-term rentals, is booming.
Short-term rentals in Vienna boast an impressive 77% occupancy rate, with properties being booked for 281 nights annually. This high demand makes short-term rentals a smart investment for property owners looking to capitalize on the city's popularity.
On average, short-term rentals in Vienna command a daily rate of €91, which is notably higher than what long-term leases typically offer. This difference underscores the profitability of short-term rental properties in the city.
By September 2024, Vienna had 10,830 active Airbnb listings, reflecting a growing market for these types of accommodations. This trend shows that more people are opting for short-term stays, whether for leisure or business.
Vienna's reputation for hosting numerous business conferences and events further fuels the demand for short-term rentals, as business travelers seek convenient and comfortable lodging options.
2) Vienna’s property prices will stabilize after rapid growth, creating more opportunities for strategic investments
In recent years, Vienna's residential property market has experienced a noticeable shift. In 2023, the residential property price index in Vienna fell by 3.01% year-over-year, marking the third consecutive quarter of decline. This trend continued into 2024, with house prices falling by 3.2% year-over-year by June, following a significant dip of 18.3% in the previous quarter.
Reports from real estate agencies have also indicated a slowdown in price growth. For instance, the average transaction price for new dwellings in Vienna increased from 4,000 euros per square meter in 2016 to approximately 6,000 euros per square meter in 2023. However, this growth has slowed down, and prices are expected to stabilize. Additionally, Austria’s house prices are now falling, with a 2.35% year-over-year decline in Q4 2023, marking the third consecutive quarter of decline.
Another factor contributing to the stabilization is the increased supply of new residential developments. In 2023, around 43,400 new residential units were completed, but expectations for 2024 indicate a potential drop of up to 10% in new builds, possibly hitting a low in 2025. This increased supply, coupled with government policies like Austria’s KIM Ordinance, which regulates consumer real estate financing, is expected to free up financing options for private and institutional investors, benefiting property developers and home seekers alike.
Consumer surveys have shown a shift in buyer sentiment towards more cautious investment, partly due to rising interest rates making mortgages less affordable. This has led to a 25% year-on-year decline in transaction volumes for flats and a 21% drop for single-family homes since autumn 2022. Economic forecasts predicting stable inflation rates and interest rates remaining stable or low could further contribute to a more stable housing market environment.
Increased rental yields are also making property investment more attractive. The average rent in Vienna saw an increase of 8.2% year-over-year in 2023, reaching €473.40 per month. This strong demand for rental properties is expected to improve rental yields, making property investment more attractive. Meanwhile, demographic studies show steady population growth without significant spikes, supporting the demand for housing.
Foreign investment trends indicate a plateau, suggesting that the rapid growth phase is over. Media reports have highlighted a cooling in the real estate market, indicating a slowdown in price growth and increased negotiation power for buyers. Expert opinions from economists and real estate analysts predict stabilization, with some experts noting that the once-booming market is cooling off.
Sources: Statista, Global Property Guide, EHL Publications
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) Simmering will attract investors with its strategic location and industrial redevelopment
Investors are eyeing the Simmering district for its strategic location and industrial growth.
With property prices soaring in central Vienna, many are turning to Simmering for its affordable real estate. This district offers a perfect blend of value and potential, making it a hotspot for savvy buyers.
Simmering's connectivity is a game-changer. The district boasts the terminal station of the metro line U3 and a direct slip road to the A4, leading straight to the Vienna International Airport. This ease of access is a magnet for businesses and residents alike.
The government is backing Simmering's transformation with a focus on industrial redevelopment. Major players like Siemens SGP and Leo Pharma have already set up shop here, signaling a robust industrial presence. New business parks and industrial zones are on the rise, turning Simmering into an industrial powerhouse.
These developments are not just about industry; they're reshaping the district's identity. Simmering is becoming a vibrant hub, attracting both businesses and individuals looking for growth opportunities.
Sources: MK Real Consulting, Urban Planning 2025
4) Eastern European investors will increasingly target Vienna’s real estate market for safe investment opportunities
Investors from Eastern Europe are increasingly eyeing the Vienna real estate market for safer investment opportunities.
With property prices soaring in places like Poland and Bulgaria, many investors are looking for more stable markets. Vienna stands out as a city where they can find stability and growth. The city's reputation for a high quality of life and low crime rate makes it an attractive option for those seeking a secure investment environment.
Political and economic instability in some Eastern European countries is also driving this trend. The ongoing conflict in Ukraine, for example, has made core European countries like Austria more appealing. Investors are drawn to Vienna's safe and stable investment climate, which offers a refuge from the uncertainties back home.
There's also a growing interest in diversifying investment portfolios. Eastern European investors are keen to explore Vienna's real estate market, which is known for its stable economy and attractive opportunities. Real estate agencies in the city have noticed a surge in inquiries from Eastern European clients, signaling a rising interest in the market.
Vienna's appeal is further enhanced by its strategic location in Europe, acting as a bridge between East and West. This makes it a prime spot for investors looking to expand their reach. The city's infrastructure and business-friendly environment add to its allure, making it a top choice for those seeking to diversify their investments.
As Eastern European investors continue to seek out Vienna, the city's real estate market is poised for growth. This influx of interest is reshaping the landscape, with more investors recognizing the long-term potential of Vienna's property market.
5) Hietzing will attract more buyers with its luxury living and natural surroundings
In recent years, Hietzing has become a highly sought-after district due to its unique combination of luxury living and natural surroundings. The property prices in Hietzing have been on the rise, with high-end locations within the Gürtel, including Hietzing, seeing prices ranging from EUR 6,300/m² to EUR 22,500/m². This indicates a strong demand for luxury properties in the area.
Moreover, the district has witnessed an increase in luxury real estate developments, such as the Floriette project on Jagdschlossgasse and the Stock im Weg project. These developments offer modern amenities and are strategically located near natural attractions like the Lainzer Tiergarten, which is a significant draw for buyers seeking a blend of urban and natural living.
Additionally, surveys have shown that buyers prefer green and tranquil living environments, which Hietzing offers with its mix of historic and modern accommodations. The district's appeal is further enhanced by the presence of upscale restaurants and shops, as well as increased investment in local infrastructure and amenities, making it an attractive destination for affluent buyers.
Social media trends and media coverage have also played a role in showcasing Hietzing's lifestyle appeal, highlighting its picturesque surroundings and luxurious properties. This online presence, combined with testimonials from residents praising the district's quality of life, continues to attract potential buyers to the area.
Sources: Engel & Völkers Vienna, Vigo Immobilien, Le Figaro Properties
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6) Demand for accessible, senior-friendly housing will rise due to an aging population
As we look back at the past few years, it's clear that the aging population is becoming a significant part of Vienna's demographic landscape. By 2053, more than 20% of Vienna's population will be 65 years or older, with a notable increase in those aged 80 and above. This shift means that more people will need homes that cater to their specific needs as they age.
In 2023 and 2024, reports showed that many seniors in Vienna lived in apartments with barriers like no elevators or narrow passageways. This situation highlighted the urgent need for renovations or moves to more suitable housing. The demand for senior-friendly housing was already outpacing supply, and this trend was expected to continue, emphasizing the need for new developments.
Moreover, the senior housing industry saw a significant increase in demand, with a 40% absorption rate in early 2024 compared to the previous year. This growth was a clear indicator of the positive outlook for the industry, driven by the rapid recovery in occupancy and the need for more senior housing options. The gap in senior-friendly housing availability, with 60% of elder households living in barrier-filled apartments, further underscored the necessity for accessible housing developments.
Sources: Vienna Population Projection, Vienna Housing Research, Senior Housing Industry Forecast
7) Interest in Wieden will drop as property prices become unaffordable for average buyers
The Wieden district in Vienna is facing a challenge with property prices that have become unsustainable for average buyers. The average property price in Wieden is EUR 10,167 per square meter, which is significantly higher than the average income levels in Vienna. This large gap makes it difficult for average buyers to afford properties in the district.
Additionally, the average gross rental yield in Vienna is relatively low at 3.28%, indicating that property prices are not generating sufficient returns to justify the high costs. This situation could lead to a preference for renting over buying, especially in expensive districts like Wieden. Furthermore, the average rent in Vienna increased by 8.2% year-over-year in Q3 2023, which might further encourage renting over buying.
Moreover, the average property price in Wieden is much higher compared to more affordable districts like Margareten and Simmering, where prices are EUR 4,827 and EUR 4,954 per square meter, respectively. This stark contrast highlights the affordability gap between Wieden and other districts, potentially driving buyers to seek more affordable options elsewhere.
Sources: Global Property Guide, Vigo Immobilien, Engel & Völkers
8) Margareten’s property values will rise with major urban renewal projects underway
The Margareten district is set to experience a boost in property values due to several key factors. One of the most significant is the increased investment in urban renewal projects, such as the expansion of the subway network and the connection to the U2 subway line. This includes the redesign of Reinprechtsdorfer Straße and the remodeling of the ÖBB train station at Matzleinsdorfer Platz, which are expected to enhance the area's infrastructure and accessibility.
Another important factor is the rising property prices in neighboring districts like Neubau and Innere Stadt. These areas have seen significant price increases due to their historical significance and vibrant cultural scenes. As Margareten undergoes similar transformations, it is likely to follow this trend. Additionally, the City of Vienna's urban renewal programs, like WieNeu+, offer government incentives for property development, further boosting property values.
Moreover, the growing interest from real estate investors, exemplified by projects like "Margaretenstraße 102," indicates a strong belief in the area's potential. This project involves renovating and extending a historic building, creating attractive apartments that appeal to both residents and investors. Such developments, along with new commercial projects, are attracting businesses and residents, enhancing the district's desirability.
Sources: Smart City Vienna, WieNeu+, Rendity
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) High-demand neighborhoods will see price rises due to limited supply and strong desirability
In recent years, Vienna has seen a steady increase in property prices, particularly in high-demand neighborhoods. From 2016 to 2023, the average price for new homes rose from 4,000 euros to about 6,000 euros per square meter. This trend is expected to continue, driven by a combination of limited supply and strong demand.
One of the main reasons for this price increase is the decreasing availability of properties. The construction of new apartments has significantly dropped, and this trend is expected to persist into 2025 and 2026. With fewer new homes being built, the existing properties become even more valuable, especially in desirable areas. Additionally, short-term rentals in these neighborhoods have a high occupancy rate of 77%, indicating a strong demand for housing.
Rental prices have also been on the rise, with an 8.2% year-over-year increase in 2023. This is largely due to the influx of international students and expatriates, who contribute to the high demand for rental properties. As a result, rental yields in Vienna are improving, making these neighborhoods even more attractive to investors.
Vienna's population is growing, with an expected increase of 310,000 residents by 2053. This population growth naturally boosts the demand for housing, further driving up prices. Urban development plans, like the Aspern Seestadt project, aim to address this demand by adding over 11,000 homes. However, even with such ambitious projects, the housing supply remains tight due to the strong demand and limited availability.
Sources: Urbact, Esri Newsroom
10) Leopoldstadt will see rising demand as it becomes a hub for tech startups and co-working spaces
In recent years, the Leopoldstadt district in Vienna has become increasingly attractive to tech startups and co-working spaces. This trend is largely due to the rising number of tech startups registering in Vienna, with the city being home to 261 startups, which is about 58% of Austria's total. The growth in industries like Edtech, Fintech, and Marketing & Sales has been particularly notable, making Vienna a vibrant hub for innovation.
Investment in tech infrastructure has also been on the rise, with the Vienna startup database mapping over 990 startups and scaleups, 190 investors, and more than 670 funding rounds and exits. This indicates a strong financial backing for tech initiatives, including those in Leopoldstadt. The record investment period for Viennese startups in Q3 2023, led by companies like Bitpanda, further underscores this trend.
Moreover, the district has seen a surge in new co-working spaces, such as Impact Hub and Zimmer Concept to Work, which offer flexible work environments and foster collaboration among startups. These spaces are crucial in creating a vibrant ecosystem that supports innovation and growth. Additionally, media coverage highlighting Leopoldstadt as an emerging tech hub has attracted more entrepreneurs and investors to the area.
Sources: StartupBlink, WeAreDevelopers, Dealroom
11) Tax incentives for green buildings will draw more investors to sustainable real estate projects
Tax incentives for green buildings have become a significant draw for investors in sustainable real estate projects. In 2023 and 2024, Austria introduced a 15% investment allowance for green investments, which made eco-friendly residential projects more appealing by reducing the initial cost burden of adopting climate-friendly technologies like heat pumps and biomass boilers. This financial relief encourages more investors to consider sustainable projects as viable and profitable options.
Moreover, the UFI funding program, which provided approximately 274 million Euros in 2021 for projects that significantly cut energy use and CO2 emissions, demonstrated the government's strong backing for green initiatives. This support is expected to continue growing, signaling to investors that sustainable real estate is a priority and a safe investment. The growing demand for eco-friendly properties in Vienna, driven by an expected population increase of 310,000 new residents over the next thirty years, further underscores the potential for high returns on investment in sustainable real estate.
Additionally, the introduction of energy efficiency tax incentives, such as the Inflation Reduction Act's Section 179D and Section 45L, has provided commercial developers and homebuilders with substantial deductions and credits. These incentives make it financially attractive to meet heightened efficiency targets and obtain certifications like Energy Star, which can significantly enhance the market value of green buildings. The case of a Florida residential developer who successfully tapped into federal tax credits to fund an eco-friendly apartment project illustrates how strategic planning can unlock major subsidies for building sustainable housing.
Sources: Green European Journal, Engineered Tax Services, Building Innovation Hub
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12) Vienna will see more energy-efficient buildings due to new environmental regulations
In recent years, Vienna has made significant strides in promoting energy-efficient buildings, largely due to new environmental regulations. In December 2023, the Vienna Building Code was amended to focus on energy efficiency and environmental sustainability. These changes are designed to encourage responsible urban planning and the use of renewable energy sources in new constructions.
The city government has also committed to achieving climate neutrality by 2040. This commitment includes refurbishing existing buildings and constructing new ones according to strict environmental criteria. Such initiatives are part of a broader strategy to ensure affordable and sustainable living for the future.
Moreover, the introduction of the klima:aktiv label and the GreenBuilding project has set high standards for energy efficiency and environmental sustainability. These certifications not only recognize buildings that meet these standards but also encourage broader improvements in energy efficiency across the city.
Sources: Aliant Law, WIT Press, Wien.gv.at, Green European Journal
13) Foreign investment will focus on districts with rich cultural and historical significance
Foreign investment in Vienna is increasingly focused on districts with strong cultural and historical significance.
In Vienna's First District, a UNESCO World Heritage Site, property prices have surged, with the average price per square meter hitting EUR 19,907 in January 2024, an 8.8% rise from the previous year. This area is a magnet for investors due to its rich history and cultural landmarks.
The luxury real estate market is buzzing with activity, especially from foreign buyers hailing from Eastern Europe, like Russia and Ukraine. These investors are drawn to Vienna's historical charm, making culturally significant areas their top choice.
Real estate agencies are noting a high demand for new luxury apartments, driven by both local and foreign buyers. Price hikes in these areas reflect this demand, with foreign clients showing a keen interest in properties that boast cultural value.
Media reports often highlight the allure of Vienna's historical districts for foreign investors, reinforcing the trend of investment in these areas. Foreign buyers are particularly captivated by the city's cultural heritage, which adds to the appeal of these districts.
Anecdotal evidence from real estate professionals suggests that foreign clients are especially interested in properties with cultural significance. This reinforces the concentration of foreign investment in historically significant districts.
Sources: Global Property Guide, Luxury Vienna
14) Asian buyers will target new developments in central Vienna for modern amenities and investment potential
Asian buyers are increasingly focusing on new developments in central Vienna due to the city's modern amenities and strong investment potential. In 2023 and 2024, foreign portfolio investment in Austria saw a significant increase, indicating a growing interest in Austrian real estate, including Vienna. This trend suggests that Asian investors are actively seeking opportunities in the region.
Central Vienna has experienced a construction boom, with a high number of new units entering the market in 2023. Although the supply of new space is expected to decrease in 2025, the demand for rental housing in central Vienna continues to exceed supply. This limited availability, coupled with rising rental prices and property values, makes new developments particularly attractive to Asian investors looking to capitalize on these opportunities.
Moreover, Vienna's modern amenities, such as smart home appliances and sustainable living spaces, align with the preferences of Asian buyers who favor modern and centrally located properties. The city's appeal as a hub for international education and business further enhances its attractiveness, drawing expatriate professionals and international students who drive demand for such housing.
Sources: CEIC Data, Savills, EHL
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) Young professionals will flock to Vienna, boosting demand for modern, affordable housing options
Vienna is becoming a magnet for young professionals, and there are several reasons for this trend. First, the city has seen a significant rise in employment opportunities, especially in the tech and startup sectors. In 2022, Vienna welcomed 9,503 new businesses, with a notable number of young founders, indicating a vibrant entrepreneurial scene.
Moreover, the Austrian government has been proactive in attracting international talent, leading to a surge in international companies setting up offices in Vienna. This influx of businesses from countries like the EU, USA, and UK further boosts job opportunities, making the city even more appealing to young professionals.
Vienna's high quality of life is another major draw. The city consistently ranks as one of the top places to live globally, thanks to its excellent public services, transportation, and social environment. This reputation is supported by its unique social housing model, which offers affordable living options, a crucial factor for young professionals seeking modern yet budget-friendly housing.
Sources: Vienna in Figures 2023, Datawrapper Blog, Vienna Info
16) The expanding expat community will drive demand for diverse and culturally inclusive neighborhoods
The growing expatriate community in Vienna has significantly influenced the market towards more diverse and culturally inclusive neighborhoods. As of 2024, Vienna's population included 35.4% foreign nationals and 40.2% of residents born abroad, highlighting a substantial increase in diversity. This demographic shift has naturally led to a demand for neighborhoods that reflect a variety of cultural backgrounds.
International schools like the International Christian School of Vienna and Danube International School Vienna cater to students from over 55 countries, indicating a strong preference for diverse educational environments. This trend is mirrored in the real estate market, where multicultural areas such as the 1st and 2nd districts are particularly popular among expatriates, drawn by the city's high security, excellent public transportation, and rich cultural offerings.
Moreover, the presence of international businesses and organizations, such as the United Nations Industrial Development Organization, has spurred the growth of businesses catering to international communities. This includes restaurants, shops, and services that meet the diverse cultural needs of expatriates, further enhancing the multicultural fabric of Vienna's neighborhoods.
Sources: Global Investments, Global Property Guide, City of Vienna
17) Floridsdorf will become more popular for its affordable housing and nearby green spaces
In recent years, the Floridsdorf district in Vienna has been gaining popularity, and there are a few key reasons for this trend. One of the main factors is the rising property prices in central Vienna, which have led buyers to seek more affordable alternatives. Floridsdorf offers significantly lower property prices, making it an attractive option for those looking to buy a home without breaking the bank.
For example, the average property prices in Floridsdorf are much lower compared to other districts in Vienna. Apartments in new residential complexes like "Wohntraum" range from €219,000 to €599,002 euros, which is more affordable than many central districts. This affordability is a major draw for both young families and professionals who are looking for a place to settle down.
Another reason Floridsdorf is becoming more popular is its proximity to green spaces. Surveys have shown that buyers are increasingly interested in areas with access to nature, and Floridsdorf fits the bill perfectly. Over 41% of its total area is covered by small forests, parks, and vineyards, offering residents a chance to enjoy a balance between urban life and nature. Additionally, the district is close to popular parks and recreational areas like the Danube Island, providing ample opportunities for outdoor activities.
Sources: Vigo Immobilien, Wiener Linien, Neubau Kompass
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.