Luxury Real Estate in Vienna: What Drives the Market

According to the current market report by Engel & Völkers, the Vienna market is remarkably stable. While the residential real estate market is cooling overall, the premium segment is even recording increasing transaction numbers. Price levels in prime locations remain high, especially in the first district, where according to Engel & Völkers, square meter prices between 25,000 and 30,000 euros are no longer uncommon (Engel & Völkers Price Analysis).

Millions for Vienna Villas in Döbling, Hietzing, or Währing

Luxury is also in high demand outside the center. In districts like Döbling, Hietzing, or Währing, prices for villas and exclusive apartments are sometimes in the double-digit million range. Properties with high-quality furnishings, a lot of privacy, and good connections are particularly sought after – but not necessarily in immediate city center locations.

The continued strong interest in upscale living in Vienna is demonstrated by the 3SI Immogroup. According to a report by trend.at, the company was able to almost triple its apartment sales in the second quarter of 2024 compared to the first – a clear sign that the willingness to pay in this segment remains unbroken.

Luxury Real Estate in Vienna According to CBRE Report 2024

The current "Luxury Real Estate Report 2024" by the real estate service provider CBRE shows that the luxury real estate business in Europe is flourishing. While institutional investors are withdrawing from the market, wealthy private investors and family offices are seizing the opportunity to acquire top properties. Luxury retailers are increasingly securing ownership for their flagship stores – across Europe, but not yet significantly in Vienna.

In Vienna, luxury retail is concentrated in a few exclusive locations such as Kohlmarkt and Graben, according to a Kurier report. There, international luxury brands like Louis Vuitton, Hermès, or YSL significantly drive demand and rents upwards – currently, top rents in the luxury segment are about 2.6 times those of the mass market. The space requirements of major brands have also led to a spatial expansion from Kohlmarkt towards Graben.

The stable industry structure and high purchasing power – particularly due to the resurgence of tourism – make Vienna's luxury locations a highly attractive target for international brands, even though suitable locations are limited.

Limited Availability of Suitable Properties in Vienna

However, the limited availability of suitable properties poses a challenge. Due to high demands on location, amenities, and construction quality, as well as rather restrained new construction activity, the supply of luxury real estate in Vienna is scarce. Nevertheless, specialized platforms like LuxuryEstate and JamesEdition offer a wide selection of properties in the high-price segment – from spacious old apartments to high-end villas with pools and smart home technology.

Further insight comes from the current Otto Housing Market Report 2024, which confirms that demand in the premium segment remains robust – despite interest rate hikes, rising construction costs, and regulatory hurdles. Vienna scores with its cultural heritage, high quality of life, and political stability – factors that are particularly relevant for international buyers.

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