Vienna is building too little: Housing shortage threatens to worsen
The real estate service provider CBRE identifies a "structural undersupply" in the Vienna housing market. Due to a low number of completions, high construction costs, and population growth, the demand for apartments currently "significantly exceeds" the supply, according to a press release on Monday. A trend reversal is not currently emerging despite positive signals such as falling key interest rates and the expired KIM regulation.
Experts See Vienna Housing Market Structurally Undersupplied
CBRE reports about 8,800 apartments completed in 2025 in large-scale new construction, a decrease of about 20 percent compared to the previous year. "The privately financed rental sector is particularly affected, with new construction performance more than half below the five-year average. For the coming year 2026, only a slight increase to under 10,000 apartments is expected - too little to provide relief," the company writes.
There is hope only in the development in the districts of Donaustadt and Floridsdorf in the northeastern part of the city. More than half of all new apartments are being built here. "Due to the still available land reserves and correspondingly low land prices, the focus will also be here in the coming years, in addition to the explicitly designated urban development areas," explains Marc Steinke of CBRE Austria.
Price for Ownership Increased
Due to higher construction prices, the prices for condominiums have recently increased. Currently, one has to pay around 6,500 euros per square meter. Furthermore, according to CBRE, top rents in Vienna are currently 19.40 euros per square meter per month, 5.4 percent higher than the previous year - especially in the inner districts and in attractive locations of Donau City. According to the real estate company, no trend reversal is expected here in the coming year either.
(APA/Red)
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