editorial
03
Even if the situation or the challenge is very complex, usually the simplest solution is the one to go with. — Roxanne Quimby
Dear Reader,
A variety of challenges have taken a massive toll on the entire construction and real estate industry in the past few years, including a dras- tic decline in residential development volume in Austria. The resulting decline in completion rates has led to a tense situation on the market, especially in the ensuing imbalance between supply and demand for affordable property. Despite all the barriers, the Viennese residen- tial market still provides abundant potential for developers. We anticipate a long awaited return to increased development in Austria as well as continued heavy demand in 2025. Even though construction costs are still high, we are beginning to see the first companies announce promising new projects, fulfilling their responsi- bility towards creating urgently needed housing on the market. And there are other reasons for optimism looking forward into the year ahead: inflation has stabilised; in another encouraging sign, the KIM regulation that restricts how banks can finance development projects will be com- ing to an end in the middle of the year, making it easier for private individuals to secure financing again in the future. This is a highly favourable development that should benefit developers and home seekers alike. Once again, we are pleased to provide this comprehensive insight into current develop- ments, trends, and future opportunities in this thirteenth edition of the First Vienna Residential Market Report – a joint publication by BUWOG and EHL Immobilien.
important than ever after the crises of recent years, especially in view of the tense global eco- nomic and political situation and the changing face of housing and living with new require- ments on residential properties. Despite all the barriers, the Viennese residential market still provides abundant potential for developers. We anticipate a long awaited return to increased develop- Our report has become an important reference work over the past ten years with these times of uncertainty and change making it especially relevant. Our in-depth market know-how stems from annual data collection and research that flows directly into our projects and services – a clear benefit to our customers and business partners. This report in its many facets serves as a valuable source of information for home seekers in Vienna who can finally look forward to plenty of new projects in 2025, while provid- ing urban planners, city authorities, research organisations, institutional investors, and similar with a valuable knowledge source. ment in Austria as well as continued heavy demand in 2025. We look forward to the new year with positivity and optimism, and wish you an interesting read full of new and useful insights alongside a successful year on the Viennese residential market in 2025.
A current analysis of market developments and evaluation of risks and opportunities are more
Yours sincerely,
Mag. Daniel Riedl FRICS Director, Vonovia SE
Andreas Holler BSc Managing Director of BUWOG Group GmbH
KommR Mag. Michael Ehlmaier FRICS Managing Director of EHL Immobilien GmbH
Karina Schunker M.A. MRICS Managing Director of EHL Wohnen GmbH
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