Our latest market report provides you with a detailed analysis of prices, developments, and trends in the Austrian real estate market—clearly broken down by asset class. Whether you are an investor, owner, or real estate professional, get the overview you need to make informed decisions.
In the second quarter of 2025, the transaction volume remained below the previous year's figure at around €1.6 billion, with real estate sales dominating in particular to raise liquidity – especially in the hotel and residential sectors. GDP rose minimally by 0.14%, inflation stood at 3%, which led to an easing of the ECB's interest rate policy. Institutional investors are showing renewed interest in 2025, particularly in core assets such as offices, hotels, logistics, and apartment buildings. Despite stable demand, high construction costs and difficult financing conditions are hampering new construction. Equity-rich investors, such as family offices and pension funds, remain particularly active in this volatile market environment.
Download the full Q2 2025 market report as a PDF here.
In the first half of 2025, around 63,360 m² of modern VRF space was leased – significantly less than in the previous year – with demand remaining strong, particularly in the CBD. Project developments continue to be delayed due to high interest rates and construction costs, which means that contiguous space remains scarce and vacancy rates are rising. Prime yields are stagnating at 4.75% in top locations, with a downward trend due to a lack of high-quality properties. Core products remain in demand. Prime rents remain stable in Austria, with ESG-compliant top properties with high-quality fittings achieving the highest rents. Despite the shortage of supply, the market is price-sensitive.
Download the full Q2 2025 market report as a PDF here.
Vienna's tourism industry is recovering noticeably, with footfall on high streets almost back to 2019 levels, which is also boosting its appeal for locals. When it comes to new leases, retailers are focusing on prime locations, while B and C locations are under increasing pressure and need to consider alternative uses. Retailers are becoming increasingly cautious and need more time to select locations. Landlords need to be more responsive to tenants' needs when renewing leases, for example by offering special termination rights, graduated and index-linked rents, or construction cost subsidies. The high street retail market in Vienna remains focused on the “Golden U” and Mariahilfer Straße, while district locations are gaining in importance – rents remain stable..
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The stock of logistics and industrial space in the Vienna area amounts to around 8.19 million m², with only 33,288 m² transacted in the first half of 2025 – significantly less than in the previous year. The space is divided between logistics (67%) and production properties (33%). The market is characterized by a shortage of available space, triggered by high pre-letting rates, delays, and speculative restraint. At the same time, insolvencies and restructuring are leading to more space coming onto the market. Nevertheless, vacancy rates remain low. Developers are increasingly focusing on brownfield projects. Rents range between EUR 7 and EUR 9/m², depending on location and quality; rising construction costs and interest rates are driving prices further upwards.
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Rents in Vienna continue to rise as housing supply remains scarce and demand remains high, particularly due to migration and population growth. Construction delays, high costs, and expensive financing are hampering new construction, meaning that supply is not keeping pace with demand. Affordable housing in the privately financed segment is particularly affected, with rising living costs further exacerbating the situation. Currently, around 76% of households in Vienna live in rented accommodation; of a total of approximately 969,000 primary residences, around 189,000 are owner-occupied. Around 413,000 households live in affordable rental accommodation such as municipal apartments, cooperative apartments, or subsidized buildings.
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The property market recorded a slight increase in transactions compared to the previous year, although prices in the secondary market are declining and marketing periods are becoming longer. The abolition of the KIM regulation and measures such as the exemption from real estate transfer tax are intended to facilitate the purchase of condominiums and increase the ownership rate. The ECB lowered its key interest rate to 2.15% in the second quarter of 2025, which could affect financing costs. At the same time, a shortage of affordable land, increased construction costs, and construction delays are weighing on new construction—a sustained low supply of new construction is expected in the long term.
Download the full Q2 2025 market report as a PDF here.
We (ÖRAG) would like to kindly point out that the above information has been compiled by us (ÖRAG) to the best of our knowledge and belief, is non-binding, and is based on current market conditions. However, we expressly reserve the right to make changes and errors.
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