There are fewer and fewer undeveloped plots of land in the federal capital and their price will continue to rise in the coming years. This also ensures significant price increases for apartments.
Vienna is growing continuously. According to forecasts, the population is expected to increase by 12,300 people this year. In addition, the baby boomers will retire in the coming years. The highest birth rate since the Second World War was 1963. This generation will soon leave the labor market.
The real estate experts assume that the vacant positions will be filled by immigration. This creates additional demand.
However, supply will decrease because fewer building permits are being issued in Vienna than in previous years. Less supply when demand increases will drive up prices.
Condominiums have become five percent more expensive when they move into new ones. In the inner-city area, one square meter already costs over 5,000 euros. In the outskirts it is around 4,400 euros per square meter. This is no longer affordable for many. It’s no wonder that two thirds of new construction work will be in the form of rental apartments.
The real estate experts assume that rents will rise by the rate of inflation this year. 12 euros per square meter are not uncommon.