Austrian housing market sees rising demand amid shrinking new-build supply
In 2025 Austria recorded a notable rise in residential property purchases while the number of building permits fell to its lowest level since 2010, tightening supply.
Austria's residential property market in 2025 experienced a clear upward trend in buyer activity, while the issuance of permits for new housing projects reached the lowest point since 2010. Deloitte Legal partner Gabriele Etzl attributes the heightened demand for existing apartments to better loan terms, the winding down of the KIM regulation and price dynamics that stayed below inflation. In contrast, the construction sector continues to lag, with new-build transactions still below long-term averages.
Etzl cautions that the growing demand, coupled with limited new supply, may further elevate price pressures, a situation likely to persist into 2027. Comparative data show that purchase prices for new apartments in Vienna remain lower than in cities such as Munich, Amsterdam and Barcelona, while rent levels for existing stock vary across Austrian cities and are markedly lower than in places like Luxembourg, Paris and Barcelona.
Why it matters
Rising buyer interest with limited new housing could push Austrian home prices higher, affecting affordability for residents.
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