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glossary
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In keeping with tradition, we at BUWOG and EHL Immobilien would like to use this Residential Market Report to review current market developments and take a look at what to expect on the Viennese housing market in 2025.
Small print comes in large print. Please find below comments and explanations of some terms used in this report.
al living, and sustainable designs and plan- ning. Digitisation, artificial intelligence, serial construction, and alternative building mate- rials have been gaining in importance, driving change in the industry. Many developers have already embarked on innovative, sustainable, and efficient construction solutions that satisfy increasing expectations from the market and society at large. The first players on the domestic real estate market have begun implementing new projects again, and new apartment completions will help reduce the supply gap. Still, nothing is set in stone as we have seen in recent years. Unforeseeable events and developments can quickly become challenges requiring a rapid response and adaptation. We still view 2025 with cautious optimism. Our aim is still to shape the market while taking the individual needs of home seekers into account in the most effective way possible. We can only wait and see what 2025 actually holds for us, and the challenges and opportunities it has in store for favourable market development.
Sales prices are full ownership prices per square metre of net floor area, not including service and maintenance costs.
All references to persons in this text are intended to refer to all genders.
Rents are quoted net, exclusive of taxes and service charges.
Source data
Definitions
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 loca- tions 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 Statis- tics Austria, the state statistics office, and in- formation obtained from the City Government of Vienna, unless a different source is named.
The term „First occupancy“ in relation to prices refers to newly built apartments, or older build- ings after complete refurbishment.
The past two years have been seen many adverse influenc-
es that have turned the market upside down, causing a minor crisis in the industry. However, current indications point to recovery and an upswing. The KIM regulation on property financing will expire from mid-2025, which we believe will improve the (political) situation on the Vienna housing market this year. This leads us to antic- ipate a gradual increase in urban development to meet the continued high demand for new and, in particular, affordable housing. Temporary construction freezes over the past two years led to a significant decline in com- pletions, which is still noticeable – a decline of almost a quarter in completed rental apart- ments in Vienna in 2024, a trend expected to worsen further in 2025 with the supply of new developments in this segment falling to a historic low. However, we have seen a noticeable trend on the Viennese housing market despite this difficult start. Demographic changes require ongoing adjustments in real estate planning and development as reflected in the increasing demand for flexible housing, multi-generation-
„Other“ refers to tenancies and sales of second-hand homes.
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.).
FIRST VIENNA RESIDENTIAL MARKET REPORT 2025
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