More than 5,400 euros per square meter: little supply makes apartments in Vienna more expensive

The prices for Terraced houses increased in the past year compared to 2024 by 2.7 percent to an average of 3,194 euros per square meter and that for Single-family homes by 1.9 percent to 3,327 euros. An average of 970.5 euros per square meter was due for building plots last year.

Increased market pressure

According to Michael Pisecky, chairman of the specialist group of real estate and asset trustees at the Vienna Chamber of Commerce, the rising prices are “a clear warning signal”. The supply of housing in Vienna is becoming increasingly scarce – both in new buildings and when renovating existing ones. “If political countermeasures are not taken quickly, supply will continue to decline and living in Vienna will become even more expensive,” he said in a broadcast on Friday.

The demand meets a supply that is not growing quickly enough. “If too little new living space is created and at the same time too little of the existing property is renovated and activated, the pressure on the market increases further,” emphasized the developer spokesman for the Vienna Real Estate Trustee, Clemens Biffl. The consequences are increasing prices, falling availability and burdens for those looking for accommodation.

Significantly fewer completions

“The completion figures have almost halved in the last eight years – there is an urgent need for action,” emphasized Pisecky. According to the two stakeholders, there is an urgent need to boost residential construction and significantly speed up the renovation of existing buildings.

In addition to concrete impulses for new construction and renovation, densification in the built-up areas is also necessary in order to ensure long-term supply in Vienna. “There needs to be the possibility of using existing areas for additional apartments in the built-up city,” says Pisecky.