Competition and Lack of Affordability: This is How Austria Perceives the Real Estate Market

The Austrian real estate market is picking up again. More and more people want to change their living situation – including many who now want to realize their dream of ownership. But how is the market currently perceived? A representative TQS survey commissioned by s REAL shows: Rental seekers have significantly greater difficulties in finding properties than buyers.

High Competition in Popular Locations

70 percent of rental seekers cite strong competition as a major challenge: There are numerous inquiries for a single property – leaving many empty-handed. The feeling of high competition is particularly perceived in Vienna and Tyrol.

"Especially small, affordable rental apartments in urban centers are in high demand," explains s REAL proxy Nino Lutz. "Fairness in allocation is a particular concern for us. Therefore, we work with clear, transparent processes and ensure that all interested parties have the chance to enter the selection process. We avoid mass viewings. However, during individual viewings, we inform the interested parties that the apartment may be allocated quickly."

Almost Two-Thirds of Renters Dissatisfied with Current Offerings

In addition to competition, individual preferences also play a role: 61 percent of rental seekers and nearly 49 percent of those looking to buy state that the current offerings do not sufficiently meet their housing desires.

Proxy Lutz knows: "Especially families often find it difficult to find rental apartments with a sufficient number of rooms in cities. Outdoor spaces have also become more important. At the same time, the offer in the buying sector is currently attractive. Particularly in regions like Lower Austria and southern Burgenland, there are exciting houses from the 1970s and 1980s – a generational change opens up opportunities for young buyers."

Affordability as a Key Issue for Real Estate Interested Parties

89 percent of rental seekers and 84.5 percent of purchase seekers see affordability as the
biggest challenge. This perception is particularly strong in Salzburg, Carinthia, and Vorarlberg.
After slight price declines, the Austrian market saw a resurgence of an upward trend in 2025, while falling interest rates provide better financing conditions.

Therefore, Martina Hirsch, Managing Director of s REAL, emphasizes not to rule out buying: “Those considering ownership should not dismiss their options prematurely and should seek financing advice. If the personal situation is right, now is a good time to act: Good offers and a still subdued price development offer opportunities.”

Ownership Still in High Demand - But for Whom?

Because the desire for ownership remains high in Austria. The 2025 housing study by
INTEGRAL on behalf of s REAL as well as Erste Bank and Sparkasse showed: 77 percent would rather
pay loan installments than rent, so that the home belongs to them after repayment. Nine out of ten see
real estate accordingly as a stable investment for the future, and eight out of ten agree
that they have one less worry once the property is paid off.

However, 81 percent believe that only high earners can afford ownership, and
73 percent state that the necessary debt deters them. “It's about addressing your own possibilities early
and planning,” advises Hirsch. “Then an exit
from renting – maybe not immediately, but in a few years – is realistic. Therefore, early
advice is recommended.”

About the Survey

(Red)

This article has been automatically translated, read the original article here.