This is according to the "First Vienna Housing Market Report 2025" by Buwog and EHL Immobilien. Since the beginning of the year, a clear "upward trend" has been registered, with "significantly shorter marketing times" and fewer price negotiations. The gap between the asking price and the actual selling price has also become "much smaller".

Viennese Show Renewed Interest in Condominiums

From autumn, "higher increases in asking prices" are expected, says Michael Ehlmaier, Managing Partner of the EHL Immobilien Group, in a press release. The demand for investment apartments has also increased compared to 2023 and 2024.

"Reasons for this include the ECB's key interest rate, which has fallen by a good percentage point within half a year, with good prospects for further reductions, and the significantly increased rents, which make condominiums an attractive alternative," says EHL Wohnen Managing Director Karina Schunker.

Fewer New Apartments Coming to the Market

The development on the supply side is slower. "Numerous large and small real estate developers" are "in serious economic difficulties". This weak phase will negatively impact the housing supply in the further course of the year and in the following years. "So far, there is only a significant excess demand for rental apartments, but from autumn, the supply of condominiums will also become noticeably tighter," says Schunker.

Buwog and EHL are calling for political measures in this context: "Housing construction must be relieved of cost-driving factors such as lengthy zoning and construction procedures as well as numerous excessive building regulations, and more building land must be mobilized to prevent a further increase in land prices as much as possible". Furthermore, tax incentives for investments in the housing market are necessary, according to the two real estate companies.

(APA/Red)

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