The Housing Market in a Changing World
Rental prices in Austria trended signifi- cantly upward in 2024, not only due to the strong demand but also as a result of the low level of new construction. The market has also come under added pressure from population growth. These dynamics are particularly visible in the country’s urban centres. Vienna remains the primary motor for this trend. The average net rent for investment apartments in this city rose from 13.90 Euros net/sqm in 2023 to 14.87 Euros net/sqm in 2024. The limited supply has been reflected in a declining number of lease cancellations and, in
turn, to longer average rental periods and substantially lower vacancy costs. Graz, with an increase from 11.40 to 12.00 Euros net/sqm, and Linz, with an increase from 11.50 to 12.65 Euros net/sqm, show similarly dynamic movements. In Klagenfurt, rents remained at a moderate level but rose from 11.00 to 11.50 Euro net/sqm. One decisive factor for this development is the decline in new construction projects and the resulting supply shortage on the rental market. In this situation, investors can benefit from strong demand and prospects for higher yields.
All aspects considered, this combination of high demand, low supply and higher rents are the determining factors for the Austrian rental market.
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