Austria’s Real Estate Market Accelerates: Sales Up Nearly 14%

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Austria’s real estate market showed a solid recovery in the first half of 2025 after several years of subdued activity driven by high interest rates and rising construction costs. According to the updated ImmoSpiegel report by RE/MAX, the number of transactions has significantly increased, with total market turnover approaching the levels last seen in the late 2010s. Although the market has not yet reached record highs, the recovery pace has clearly accelerated.

Transactions and Regional Dynamics

In the first half of 2025, 54,465 property purchases were registered — up 13.9% compared to the same period in 2024. Market activity has returned to levels seen a decade ago, though it remains below the long-term average. The gap with the 2021 peak has narrowed significantly: a year ago the market was down nearly 38%, but now the difference is around 29%.

Almost all Austrian federal states recorded higher transaction volumes. The fastest growth came from Vorarlberg (+29.1%), followed by Vienna (+26.7%) and Lower Austria (+16.9%). The only region where transactions declined was Tyrol. In absolute terms, Vienna remains the leader, with 2,077 more deals than in the first half of 2024.

Market Volume

Federal states. Total real estate transaction value across Austria rose 14.6% in H1 2025 to reach €15.32 billion, a figure close to 2018 levels. The market now sits just 2.7% below the decade’s average. The largest contribution came from Vienna, where total turnover reached €4.19 billion. Growth was also notable in Lower and Upper Austria, while Vorarlberg saw an impressive 40% increase year-on-year, making it one of the most dynamic regions.

Cities and districts. At the local level, demand patterns vary. Graz remains Austria’s largest local market, with €593 million in transactions, followed by Vienna’s Donaustadt district (€545 million) and Salzburg (€445 million). The top ten also include Kitzbühel, Linz, Innsbruck-Land, and Bregenz.

Demand Structure by Segment

The residential sector remains the main growth driver. Apartment sales increased 20.5% year-on-year, while single-family homes surged 31.6%. Two-family houses rose 18.6%, and townhouses 6.2%. Properties in older historic buildings sold as shared ownership grew about 7%.

The commercial real estate segment shows mixed results. Office transactions jumped 68%, warehouses rose 38%, while income-generating and retail assets recovered more slowly and remain below pre-pandemic levels.

Investment Market: CBRE

The investment segment also shows renewed activity. According to CBRE, total major transactions over the past 12 months reached around €3 billion, about 13% higher year-on-year, despite a relatively quiet Q3 2025.

Residential complexes remain the most active category, with €1.1 billion invested — more than double last year’s figure. Retail properties also performed well, attracting €355 million, while hotel investments climbed to €510 million, supported by a strong tourism rebound. The industrial segment remained stable at €254 million (+33%), while the office market was the weakest, with total investment down to €443 million, nearly 60% lower than a year earlier.

Conclusion

Experts note that Austria’s improving market performance is driven by easing credit conditions and rising buyer confidence. However, CBRE emphasizes that large transactions are often delayed, and developers remain cautious about launching new projects — limiting the construction pipeline for 2026–2027. The market is recovering, but performance varies widely by segment and remains sensitive to capital costs.

Analysts at International
Investment highlight that Austria remains one of Europe’s most expensive property markets. High prices, substantial taxes, increasing operating expenses, and moderate yields require careful due diligence from investors. With limited new housing supply and growing competition, project success depends on location quality, cost management, and sustainable demand, rather than overall market momentum.