Jan 10th 2025 Market recovery - Austria

After a period of restraint on the property market, the RE/MAX study points to a clear upturn. According to forecasts, the supply of property is expected to increase by 4% in 2025, while demand could rise by around 5%. This trend is particularly strong in cities such as Vienna, Graz and Linz. Rural areas are also benefiting from the increased demand for houses with gardens.

‘For buyers, the broader market dynamics offer more choice, while sellers can benefit from solid demand. Investors are finding attractive opportunities thanks to the rising market figures.’

The study predicts that property prices in Austria will rise by an average of 3% in 2025. Condominiums in central city locations could increase in price by up to 5%, while single-family homes in rural regions are more likely to see stable prices. In the sought-after tourist regions of Tyrol and Salzburg, prices are expected to rise by 3 to 4%.

‘Plan your property projects with foresight, especially in prime locations where an early commitment could pay off. Sellers can expect value appreciation, while buyers can rely on affordable financing terms.’

A growing awareness of sustainability is also shaping the property market in 2025. The trend towards energy-efficient properties is clear: according to the study, more than 60% of buyers are specifically opting for properties with sustainable features such as heat pumps, photovoltaic systems or improved insulation. Buildings with poor energy efficiency could fall further behind in terms of demand.

‘As a seller, you can increase the value of your property by investing in energy-efficient technologies. Buyers should pay attention to sustainable properties in order to save energy costs in the long term.’
 

Austria remains a popular destination for tourists, which further strengthens the market for holiday properties. The focus is on regions such as Tyrol, Salzburg and Vorarlberg. According to the RE/MAX study, demand for holiday properties will increase by 7%. Chalets and holiday flats with modern facilities, wellness areas and energy-efficient standards remain particularly popular.

‘Investors should focus on holiday properties in top tourist locations, as these also promise an attractive return in the long term. Owners can benefit from the popularity of this property class by making targeted investments in modernisation.’
 

The interest rate landscape remains stable, with average interest rates for property loans hovering around 3.5%. This stability makes it easier for potential buyers to plan their financing and encourages them to invest.

‘Take advantage of the current interest rates to finance your property projects efficiently. Concluding financing agreements early can pay off in an environment of possible future interest rate increases.’

The results of the RE/MAX study give grounds for optimism for the year 2025. With an upward trend in supply and demand, stable interest rates and growing interest in energy-efficient properties, the Austrian property market offers opportunities for all players. Figures such as the 5% rise in the price of city flats and the 7% increase in demand for holiday properties show that both buyers and sellers can benefit from the developments. Stay informed and use professional advice to make the best decisions for your property projects.

^{Source: RE/MAX-Studie Immobilienmarkt 2025: Ein Aufwärtstrend zeichnet sich ab. (ots.at)}