First vienna residential market report

closing words

glossary

As in previous years, BUWOG and EHL Immobilien have focused not only on current develop- ments in this residential market report but have also provided a forward-looking perspective on the Vienna residential market in 2026.

Small print comes in large print. Please find below comments and explanations of some terms used in this report.

Ongoing economic uncertainty, tighter financing conditions and further interventions in the rental market, some of which have already been announced and extend to new construction, have prompted many project developers to adopt a cautious wait- and-see stance. Although this development benefits landlords and sellers, it worsens the situation for those looking for housing. As the creation of new living space continues to decline, demand in Vienna remains persistently high. This challenging environment calls for a rethink – one that encourages new ideas and opens up fresh opportunities. Demographic change is driving the need for ongoing adaptation in real estate planning and is reflected in growing demand for flexible living models, intergenerational housing, and sustainable residential concepts. Digitalisation, artificial intelli- gence, serial construction, and the use of alternative building materials are also gaining in importance and accelerating the transformation of the industry. Many project developers are already working on innovative solutions to meet rising expectations in terms of sustainability, efficiency, long-term viability, and affordability. Although a limited number of new construction starts and completions are expected in 2026 towards providing an important stimulus for the market, it is already evident that these additional apartments will not be sufficient to meet persistently high demand. Demand for condominiums is therefore set to con- tinue rising, especially as early signs of a shift from renting to ownership are already emerging. This trend is driven by the increasing shortage in the rental segment on the one hand, and on the other, by the expectation that further interest rate cuts are unlikely in the near term. After a period of stabilisation, prices have recently settled at a steady level but are likely to edge upwards in the medium term as supply remains constrained. Against this backdrop, the current market environment in Vienna presents a particularly favourable opportunity to invest in residential property.

Rents are quoted net, exclusive of taxes and service charges.

Definitions

All references to persons in this text are intended to refer to all genders.

The term „First occupancy“ in relation to prices refers to newly built apartments, or older buildings after complete refurbishment.

Source data

Compounded by widespread construction freezes, the effects

Every effort has been made to ensure the accuracy of information in this report. Certain topics are, however, quite complex and subject to constant change. The housing market in Vienna is extremely dynamic and prices vary greatly from area to area. While certain locations are in high demand at the moment, this might change quickly. In our analysis of the housing market, we relied mainly on up-to-date data provided by Statistics Austria, the state statistics office, and infor- mation obtained from the City Government of Vienna, unless a different source is named.

„Other“ refers to tenancies and sales of second-hand homes.

of the sharp decline in construction activity over the past three years remain clearly visible. Completion figures have fallen markedly, leaving the residential market in Vienna structurally undersupplied. In 2025 alone, the number of newly completed rental apart- ments dropped by almost 25 percent, and this down- ward trend is expected to intensify further in 2026. As a result, the supply of new-build rental housing is approaching a historic low. The rent control measures adopted last year have generated considerable public attention, but they are unlikely to address the root of the problem. On the contrary, they risk further dampening the creation of new housing in both new development and renova- tion of existing stock. Demand for new apartments in Vienna already far exceeds available supply, and there are no signs of relief in 2026. Current forecasts point to a further decline in completion figures, suggesting that the market is likely to shift from a buyers’ to a sellers’ market by the end of 2026 at the latest, accompanied by an increasingly pronounced housing shortage. At present, there is a lack of strong impulses to stimulate the housing industry. The situation remains particularly strained in the rental segment where the supply of newly built apartments is increasingly falling behind demand. Market prospects for rental housing are very favourable and conditions for owner-occu- pied properties have also improved noticeably, but still too few new projects are currently being realised.

Prices

In Austria, older buildings (i.e. non-subsidised buildings constructed with planning permission before 1953 and owner-occupied houses built with planning permission prior to 1945) are sub- ject to the full scope of the Austrian Tenancy Act. This means that rents are not subject to normal market forces of supply and demand, but are basically fixed (to what is known as an „adequate rent“ or „guideline rent“). Such rents are not taken into account in our report. All prices quoted for the various districts of Vienna refer to square metres of net floor area (i.e. not including loggias, etc.). Sales prices are full ownership prices per square metre of net floor area, not including service and maintenance costs.

FIRST VIENNA RESIDENTIAL MARKET REPORT 2026