Analyse: Decline in Property Prices is Over

Real estate prices in Austria are rising again. Between July and September, prices nationwide increased by 1.3 percent, as an analysis by Raiffeisen Research based on data from the Austrian National Bank shows.

Real Estate Prices in Austria Are Rising Again

"The time of falling real estate prices in Austria is over," says Raiffeisen Research economist Matthias Reith. Between mid-2022 and the end of 2024, home ownership had become on average five percent cheaper.

Falling prices are likely to come to an end this year. For the entire year of 2025, the analyst now expects an increase of 0.9 percent. Real estate prices are also expected to continue to rise in 2026. Reith points to increased incomes and plummeting completion numbers for new buildings amid a growing population. All of this suggests further price increases. The analyst assumes that home ownership will become on average 2.5 percent more expensive in 2026.

New Constructions Are Becoming More Expensive - Despite a Drop in Demand

Even during the time of falling prices, new constructions continued to become more expensive. "Not because the demand was so great - transactions in the new construction segment have dropped significantly more than in the used segment - but because construction costs have continued to rise," says Reith. This has led to further increases in new construction prices over the past three years despite weak demand. Since mid-2022, new apartments in Vienna have become 1.7 percent more expensive, and even 8 percent in the rest of Austria. The price declines therefore occurred exclusively in the used segment, where apartments have become 8.9 percent cheaper in Vienna and 5.3 percent cheaper in the rest of Austria over the past three years, according to the analysis.

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(APA/Red)

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