Current price trends on the residential property market in Vienna

The Engel & Völkers Market Report 2024 for residential property in Vienna shows remarkable stability in the market despite challenging macroeconomic conditions. ‘After the price corrections following the interest rate hikes last year, prices are now stabilising again alongside interest rates. The market is becoming more attractive and the increasing interest in living space in the growing city is contributing to the positive market development in 2024,’ emphasises Roland Schatz, Head of Sales at Engel & Völkers Vienna.

Stable prices in top locations, significant price differences in the districts

The average price per square metre for condominiums in Vienna was EUR 6,100 in the second quarter of 2024, which corresponds to a stable to slightly declining trend compared to the previous year, when it stood at EUR 6,310. ‘In very good locations within the Gürtel, such as the 1st, 8th and 9th districts, prices remain consistently high, ranging from EUR 6,300/m² to EUR 22,500/m². This also applies to the traditionally high-priced districts of Hietzing, Währing and Döbling,’ says Schatz. In the area of detached and semi-detached houses, a slight price decline is expected in Q2 2024 with average purchase prices of EUR 750,000 compared to EUR 842,000 in Q2 2023.

A detailed analysis shows clear price differences depending on the district. The luxury segment is robust, as this group of buyers is less affected by the current economic conditions. ‘Luxury properties in the first district, Hietzing and Döbling have seen significant price increases,’ explains Roland Schatz. The price of detached and semi-detached houses is expected to fall slightly from between EUR 1.5 million and EUR 7.5 million in 2023 to between EUR 1.3 million and EUR 7.5 million in 2024. While prices in good, medium and basic locations will remain stable.

Prices for condominiums are expected to fall slightly in all locations in 2024. In good locations, prices of up to EUR 22,500/sqm will be achievable in 2024 (2023: up to EUR 23,000/sqm), in basic locations up to EUR 3,700/sqm (2023: up to EUR 4,900/sqm).

Transaction volume and number increase in 2024

Since the beginning of the year, the Viennese residential property market has once again seen an increase in transaction volumes. In the condominium segment, the experts at Engel & Völkers Vienna are forecasting a considerable increase in the transaction volume of an expected EUR 3,500 to 4,200 million for 2024, compared to a transaction volume of EUR 2,960 million in the previous year. In the detached and semi-detached house segment, a transaction volume of EUR 930 to 1,050 million is expected for the current year, which also represents a notable increase compared to the previous year's volume (EUR 622 million). The number of transactions for detached and semi-detached houses will increase from 673 to 750 to 880, while Engel & Völkers Vienna also expects an increase to between 8,500 and around 10,500 transactions for condominiums this year.

High demand drives up rents in Vienna's districts

The federal capital recently passed the two million population mark, which has further stimulated the property market and caused demand for housing to grow continuously. Accordingly, the prices of rental flats have been rising steadily for years. Rental prices have risen enormously, particularly in the top locations: The biggest price increase was in the 14th district, where prices rose from EUR 14.79/m² in 2021 to EUR 19.05/m² in 2024. Rental flats are still most expensive in the 1st district, although the price increase from EUR 20.99/m² in 2021 to EUR 22.98/m² in 2024 is still the lowest here.

Quality of life and urban flair: Vienna remains coveted by buyers

Vienna, once again the most liveable city in the world, impresses with its unique offering of urban flair, a stable economy and a broad cultural programme. Roland Schatz concludes: ‘The macroeconomic situation and the quality of the property locations are decisive for the long-term property value. The Vienna market will experience high demand for residential space due to the continuing influx of people from Austria and abroad, which will lead to a stable development in prices per square metre.’

The full market report for Vienna 2024 can be read here.