New Apartment Construction in Vienna: Warning of Severe Decline
While 17,000 apartments were completed in Vienna in 2023, a decline to 15,300 completions is expected this year - a decrease of ten percent. This development is expected to be even more drastic in the following years, with only 7,900 apartments expected to be completed by 2026.
This is evident from the "1st Austrian New Construction Report", which was prepared by the real estate data specialist Exploreal on behalf of the Chamber of Commerce based on already existing data from developers and projections. On Wednesday, the situation in Vienna was discussed in more detail at a press conference.
According to the report, housing prices in Vienna have slightly decreased compared to the previous year. A 63 square meter apartment in Vienna currently costs around 425,000 euros. The average price per square meter is currently 7,061 euros, so it has remained stable over the past twelve months.
New Construction in Vienna Largely by Commercial Residential Developers
Commercial residential developers - i.e., companies that produce residential properties for commercial distribution - built 73 percent of all new apartments in Vienna between 2022 and 2024, most of which were commercially rented. Only 27 percent of the apartments were built for non-profit purposes.
The most construction is currently taking place in Vienna-Donaustadt. Around 19 apartments were built per 1,000 inhabitants between 2022 and 2024. The rate is similarly high in the 2nd, 3rd, 14th, 21st, and 23rd districts. The least new construction activity was recorded in the inner city districts - including Mariahilf, the Inner City, and Josefstadt. "The inner development, i.e., the renovation and creation of living space in the already built-up city, is being neglected," said Michael Pisecky, head of the Vienna Chamber of Commerce's professional group of real estate and asset trustees. There is a need for legal regulations that enable affordable housing construction by reducing construction costs. For example, the parking space regulation would need to be revised.
(APA/Red)
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