Apartment Prices in Austria Rise Moderately, Lagging Inflation
Apartment prices in Austria have seen a mixed trend in the first half of 2025. While they rose moderately, they lagged behind the inflation rate, making apartments relatively cheaper. Meanwhile, the dream of homeownership is becoming more affordable due to increased loan volumes and attractive fixed-rate options.
In regions like Burgenland or Styria, apartments can be purchased at prices starting from around 2,000 €/m², significantly lower than in expensive cities like Innsbruck or Vienna. This affordability, coupled with a large market supply, offers more choice and better prices for buyers.
The volume of residential construction loans has surged by over 50% compared to the previous year, indicating increased demand. Fixed-rate loans, particularly 10-year options, remain affordable, with interest rates just over three percent. This has made homeownership more accessible, with the average Austrian apartment costing €263,639, an increase of €7,283 from 2024.
Despite the rise in apartment prices, they have increased by only +21.9% over five years, which is -6.2 percentage points below the VPI inflation rate of 28.1%. This means apartments have actually become cheaper in real terms. Furthermore, the single-family home market has shown positive signs, with more apartments sold by mid-2025.
While apartment prices have seen a moderate rise, they remain below the inflation rate, making them relatively cheaper. The increased loan volumes and affordable fixed-rate options have brought the dream of homeownership within reach for more people. With a large market supply and more choices available, now may be an opportune time to consider buying an apartment in Austria.
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