Property Prices Austria

Following the market stabilization of the previous year, 2025 brought the hoped-for turnaround and a noticeable upturn: Housing prices in Austria are increasingly stabilizing and have even begun to rise again in some regions. In 2023, there was a certain degree of uncertainty, which was accompanied by buyer hesitation in the residential real estate market. As a result, fewer residential properties were traded due to a decline in transaction activity. In 2024, transaction activity remained stable at the previous year’s level. In 2025, there was once again a significant increase in residential real estate transactions. Sales prices for condominiums and for single- and two-family homes rose in 2025 compared to the previous year, indicating that the period of price declines has come to an end. There continue to be significant differences in price levels between the top regions and the more affordable parts of the country. For example, the price per square meter for condominiums in the Kitzbühel district exceeds 10,000 euros. Among the particularly high-priced federal states are Salzburg, Vorarlberg, Tyrol, and Vienna. A five-year comparison of prices nationwide made it clear that the price corrections were minor setbacks. Depending on the segment, most districts continue to show an average increase of 36% compared to 2018. The seven districts of Kirchdorf, Neunkirchen, Kitzbühel, Hermagor, Oberpullendorf, Feldkirchen, and Reutte have even seen square-meter prices for apartments nearly double.

The inflation rate in Austria stood at 3.2% in early 2025. As lower mortgage rates have sustainably improved financing prospects, more prospective buyers are returning to the market. The recovery phase has transitioned into a stable market phase, in which prospective buyers are once again acting with greater confidence. The combination of more attractive financing terms and the desire for home ownership that retains its value has stimulated transaction activity. This surge in demand is concentrated primarily in good and very good locations, while ordinary locations remain price-sensitive and require uncompromisingly realistic pricing. Although developments in the Middle East conflict and the resulting slight rise in inflation have once again caused interest rates to deteriorate somewhat, an increase in interest rates to the levels seen in 2023/2024 is not expected. The need for housing remains high, ensuring that demand for residential real estate continues. In the future, residential real estate in popular cities such as Vienna, Salzburg, Graz, and Innsbruck will continue to be in particularly high demand. Single-family and two-family homes in the beautiful mountain landscapes of Tyrol, Salzburg, and Carinthia, or on the lakes of the Salzkammergut and the Central Carinthia region, also remain extremely attractive.

Energy efficiency and sustainability continue to play a major role in both new construction and existing buildings. New construction projects and existing properties that have undergone energy-efficient renovations with good thermal insulation are increasingly in demand. Energy efficiency is a growing purchasing criterion and is having an ever-greater impact on price. Due to high construction and resource costs, as well as uncertainties regarding material availability, properties that do not require renovation in the near future are now often preferred, despite higher purchase prices. Marketing properties in need of renovation is becoming increasingly difficult. The issue of sustainability and the associated potential for value appreciation in future-proof buildings is also highly relevant. In general, both owners and buyers need professional advice in the current climate. This is the only way to ensure that a market-driven price is achieved. Let your local Engel & Völkers experts provide you with the best possible support for your real estate questions.