Renting or Buying? What Will Be More Worthwhile in Vienna in 2025

According to ImmoScout24, the average price per square meter for rental apartments in Vienna in the first quarter of 2025 was 20.42 euros – an increase of almost 9% compared to the previous year. As reported, Vienna has thus exceeded the 20-euro mark for the first time.

One reason for this is the historically low volume of new construction. In the first half of 2025, there were according to figures from the real estate consultant EHL slightly more than 10,000 completed apartments in the federal capital. In the previous year's period, there were still more than 12,000, and in the first half of 2023, there were over 14,000 completed apartments. At the same time, demand remains consistently high due to immigration and demographic change. The result is an increasingly tense rental market that promises little long-term relief.

Ownership Market in Vienna Shows Relative Stability

In contrast, the ownership market shows relative stability. According to ohne-makler.at, the average purchase price for owner-occupied apartments in Vienna is around 6,724 euros per square meter. In premium locations such as the first district, prices of up to 27,000 euros are still being achieved, but in peripheral areas, the price level has remained constant or has only risen moderately.

What makes 2025 particularly noteworthy, however, is the development on the financing side: The relaxation of the KIM regulation has significantly eased access to housing loans. In combination with falling key interest rates, new opportunities are opening up – especially for first-time buyers. Banks are once again more open to well-prepared private individuals.

Ownership is also becoming more attractive again as a capital investment. According to immokalkulator.at, rental yields in Vienna are currently above the level of long-term government bonds in many inner-city districts, making investments in residential real estate more attractive again. Particularly in the outer districts, stable returns are emerging: Across all apartment sizes, average yields between 3% and 3.25% can be achieved there. For smaller units – often used as investment apartments – values around 3.5% are even possible. Thus, well-rentable small apartments on the outskirts are once again developing into interesting investment options.

Buying in Vienna is Worthwhile Again – But Not for Everyone

Those looking for a long-term housing solution in Vienna and who have solid equity will find better conditions for buying an apartment in 2025 than two years ago. The sharply increased rents, the limited supply, and the improved credit opportunities clearly speak in favor of it.

Nevertheless, buying is not automatically the best choice for everyone. Those who want to remain flexible in the short term or have uncertain financial prospects will feel more comfortable renting. It is important to have an individual view of the budget, life situation, and future plans – and ideally, a well-founded consultation with financial or real estate experts.

(Red)

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