Austrian Real Estate Market: Forecasts and Trends to 2025 Property prices in Austria have fallen 15% on average over two years. With high construction costs and declining new builds, experts predict prices may drop another 10% in 2025. Topics: Daily Life, Leisure & Culture.

Austrian Real Estate Market: Forecasts and Trends to 2025

The Austrian real estate market is undergoing major changes. According to experts including Dr. Alexander Predein of Vienna agency 4m-immobilien, property prices are falling due to rising interest rates and tighter lending conditions.

Current Situation

Property prices have dropped 15% on average over the past two years. Only one in ten transactions involves a mortgage. In Vienna, despite population growth, most deals happen between local residents, further pressuring prices.

Construction Costs and Demand

Although the market is struggling, high construction costs and steady demand may compress prices further. According to Raiffeisen Research, residential property prices could fall another 10% in 2025 due to reduced new construction and high material costs.

2025 Forecast

Some studies suggest that from 2025, under favorable conditions, the market may begin recovering. High construction costs and a shortage of new projects could drive prices up again. New apartment completions may drop by a third compared to 2023, creating a housing deficit.

Buyer Recommendations

Track market trends to understand when to buy. Familiarize yourself with local laws — many foreign buyers overlook this. If you are planning to invest, do not delay indefinitely.

The Austrian real estate market faces serious challenges: falling prices, rising construction costs, and changing credit conditions. But signs of recovery by 2025 exist, driven by housing shortages and high demand. Buyers should stay informed and make well-researched decisions.