Graz remains on a growth course. According to the Austrian Federal Statistical Office, the sustained population growth recorded in 2025 confirms the city’s role as one of the most dynamic housing markets in Austria. The demand for living space remains high and is supported by constant regional mig- ration. Average purchase prices have risen significantly from € 3,660 to € 4,197/sqm, which represents a plus of 14.8%. Rents are also moving in a positive direction: In 2024, they rose up to € 13.75/sqm in new buil- dings and currently equal € 14.50/sqm. Graz
Western provinces, strong university cities and new opportunities for student housing
Linz
Linz is progressively reacting to the steady demand for housing: Over 1,100 apart- ments were completed in 2025, nearly three times as many as in the previous year. However, the pressure on prices remains. Purchase prices rose by 9.3% from € 5,260/sqm in 2024 to € 5,750/ sqm. Strong momentum is also visible on the rental market: First-time rents ranged from € 11.50 to € 14.20/sqm in 2024 and currently reflect € 13.00 to € 16.00/sqm, especially in good locations like the inner city or Neue Heimat. Similar to previous years, Linz presents itself as a growing market for investors. This applies, above all, to the two-room apartment segment, which is particularly popular for student housing. The apartment market remains stable but is not very dynamic. Its lakeside location on the Wörthersee is a source of unbroken popularity, especially in the secondary resi- dence segment. First-time rents rose from € 11.50/sqm in the previous year to € 12.80/ sqm, while purchase prices have risen only marginally to € 4,570/sqm. Klagenfurt
Amraser-See-Straße 4 6020 Innsbruck
Western Austria is a market of contrasts but less dynamic than expected in 2026. Salz- burg, Tyrol and Vorarlberg remain under the influence of high prices, structural shortages and selective demand. The “revival“ appears to be more a stabilisation at a high level. Innsbruck is an ideal example for Tyrol: Rents up to € 25/sqm reflect the chronically strained market. The gap between supply and demand is wide – investments here are more a result of shortage than growth. Vorarlberg remains a special case in spite of the upward trend in transactions. As the most expensive Austrian province, the market is heavily influenced by secondary residences in the Alpine region. Investment properties are generally attractive but the supply in the
rentals. For investors, the picture is clear: Investment apartments are considered a safe form of investment but offer limited yields. Capital is tied up in high-price locations and attractive entry alternatives are rare. The opportunities lie in niches. Student housing is becoming a more important factor in Innsbruck with participation models for student residences and yields over 4.5%. The south is more differentiated: Graz has become popular as an expanding university city with stable demand and solid yields. The location quality has also been strengthened by an improvement in the connections to Carynthia and northern Italy.
The west is stable, but yields are weak; Innsbruck scores with niches, Graz with growth and perspectives.
regular apartment is limited and the high price structure makes it difficult to generate an appropriate yield on classic
Münzgrabenstraße 173c 8010 Graz
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