"Trend Reversal in the Real Estate Market" Identified

The domestic real estate market has started to recover this year. "Positive development, positive turnaround," said the CEO of the Germany, Austria, and Switzerland (DACH) region at the real estate service provider Engel & Völkers, Till-Fabian Zalewski, on Wednesday to journalists in Vienna.

"2025 was a good year, 2026 will be better." The two years before were very challenging. The transaction volumes have now "grown strongly." And so have the prices.

"Significant Trend Reversal in the Real Estate Market"

According to the information, 2025 shows a "significant trend reversal in the real estate market." After declining years, purchasing dynamics and demand have returned to the Austrian market. Condominiums are considered the central growth drivers.

On average across Austria, prices in this segment climbed by 8.4 percent this year compared to the previous year. Single-family homes increased in price by 12.3 percent. A strong increase occurred due to interest rate stabilization in the first quarter, after which prices developed moderately upward. The emerging dynamics are slightly slowed by "ongoing credit restrictions."

In total, sales in this country are expected to increase by 21 percent to 32,000 compared to the previous year. For condominiums, the transaction volume for the entire year is estimated at 10.3 billion euros - an increase of 24 percent; for single and two-family homes, it is expected to be 6.6 billion euros (plus 8 percent).

Assessment: 2026 with Market Revitalization

According to Engel & Völkers, the market revival is expected to continue in 2026 - transaction numbers are expected to rise further, prices to remain stable or slightly increase. The "lack of new construction" will remain a central price driver, especially in metropolitan areas.

In Vienna, the median sales prices for condominiums increased by 6.4 percent year-on-year in the third quarter of 2025 to an average of 6,316 euros per square meter. The transaction volume in this segment is expected to rise by about 33 percent to around 3.9 billion euros in the federal capital this year. Over 10,000 apartments are expected to be sold - an increase of 30 percent.

High Demand

Properties "that ordinary people can afford" are in very high demand, reported the Head of Sales in Vienna, Roland Schatz. Real estate is a good investment. Since January 2020, there has been a total of 29.4 percent inflation, and rental prices have increased by 45.5 percent in the same period - "and the available offers have halved." "Unfortunately, there is no end in sight here, because very little is being built."

In the area of single and two-family houses, prices in Vienna rose by 25.6 percent in the third quarter this year, with an average sales price of 866,000 euros. The transaction volume in this segment is expected to grow by 8.6 percent to about 650 million euros this year.

Given the hesitant new construction activity, rents are also likely to continue to rise. "Especially in metropolitan areas, there is a housing shortage - this also affects the rental market," Zalewski noted and issued a call to all stakeholders: "More can and must happen here."

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(APA/Red)

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