Property Prices Austria

Housing prices in Austria are increasingly stabilizing. In 2023, there was a certain uncertainty, which was accompanied by reluctance to buy in the residential real estate market. As a result, fewer residential properties were traded due to a decline in trading activity. In 2024, trading activity remained stable at the previous year's level. The sales prices for condominiums and for single and two-family houses in 2024 were at a similar level to the previous year and show that the period of price declines has ended. Despite current price developments, the federal state of Salzburg shows an increase of 1.5% in the condominium segment as well as an increase of 2.9% in the single and two-family house segment. Overall, there is a strong price gradient. The price level continues to show large differences between the top regions and the more affordable parts of the country. The square meter price for condominiums in the Kitzbühel district is over 10,000 euros. The particularly high-priced federal states include Salzburg, Vorarlberg, Tyrol and Vienna. The five-year comparison of prices nationwide made it clear that the price corrections were minor setbacks. Depending on the segment, most districts still show an increase of an average of 36% compared to 2018. The seven districts of Kirchdorf, Neunkirchen, Kitzbühel, Hermagor, Oberpullendorf, Feldkirchen and Reutte have even almost doubled their square meter prices for apartments.

The ongoing topic of interest rate development continued to occupy the real estate market in 2024. Austria's inflation rate reached its peak in January 2023 at 11.2% compared to the previous year's month, as well as the highest value since the 1970s. Over the course of 2023, the inflation rate declined and reached a value of 4.5% in January 2024. In May 2024, inflation is slowly subsiding and stands at 3.4%. The effects are still noticeable, particularly regarding financing issues. Austria's inflation rate in 2023 was 7.7%, significantly above the European average. After a long rally, real estate prices are slowing down. However, rising interest rates have dampened the number of real estate purchases. A significant market recovery is expected for 2025. Since the beginning of interest rate increases, location has become increasingly important. An excess demand was particularly observed in sought-after locations, whereby the difficult financing situation did not lead to a change of direction in price development here either. A collapse in prices and considerably more favorable purchase conditions should not be expected. The need for housing remains so high that demand for residential real estate continues to exist. In the future, residential real estate in popular cities such as Vienna, Salzburg, Graz and Innsbruck will continue to be particularly in demand. Single and two-family houses in the beautiful mountain landscapes of Tyrol, Salzburg and Carinthia or by the lakes of the Salzkammergut and the Carinthian central region also remain extremely attractive.

Energy efficiency and sustainability continue to play a major role in both new construction and existing properties. New construction projects and energy-renovated existing properties with good thermal insulation are increasingly sought after. Energy efficiency is a growing purchasing criterion and influences the price more and more. Due to high construction and resource costs and uncertainties regarding material availability, properties without immediate renovation needs are now often preferred despite higher purchase prices. Marketing properties in need of renovation is becoming increasingly difficult. The topic of sustainability and associated value development potential of future-proof buildings also has high relevance. In general, both owners and buyers need professional advice in current times. Only in this way can it be ensured that a market-appropriate price is achieved. Let your local experts at Engel & Völkers provide you with the best possible support for your real estate questions on site.