The residential property price index in Austria fell by 1.08% in the fourth quarter of 2024, according to data from the Austrian National Bank. This was the seventh quarter of year-on-year price declines.Adjusted for inflation, prices fell by a modest 2.93% in 2024, which was followed by a decrease in 2023 (-2.35%) and an increase in 2022 (+5.24%, 2021 (+12.54%), 2020 (+9.98%), 2019 (+3.05%).
In Vienna, housing prices decreased by 2.08% (-3.91% in real terms) in the 4th quarter of 2024 compared to the same period a year earlier. During the last quarter, the real estate price index in the Austrian capital remained virtually unchanged (-0.55% in real terms).
In the rest of Austria, the price index for apartments and houses decreased by 0.35% in the 4th quarter of 2024 (-2.22% in real terms). Quarter-on-quarter, prices decreased by 0.35% (-0.94% in real terms).
Market history
Housing prices in Vienna have been steadily rising since the 3rd quarter of 2004. During the first decade of the housing boom (2003-2014), real estate prices in the capital soared by 114% (70% in real terms). In the rest of Austria, they grew much less, by only 37% (9% in real terms) from 2003 to 2014.
In the following years, this trend changed as the capital became expensive. Moreover, during the Covid-19 pandemic, from 2020 to 2021, working from home became popular, leading to a decrease in demand for real estate in the city center and an increase in demand for more spacious apartments and houses in quiet residential areas. Housing prices in Vienna increased by almost 41% (24.6% in real terms) from 2015 to 2021, while the rest of Austria recorded stronger growth of over 56% (38.4% in real terms).
However, in 2022, house price growth slowed down. The impact of high inflation combined with a sharp increase in interest rates and a weak economy began to be felt in the market in 2023.Prices continued to decline last year.
The housing market is expected to remain sluggish in the medium term amid weak demand and subdued economic performance.
Source: Global Property Guide
