Austria Real Estate Market Outlook 2025

The economy returns to a growth trajectory in 2025. A slight positive growth in GDP is expected, while inflation approaches the 2% stability target. The labour market proves to be robust.

The investment market has passed the lowest point and the recovery continues. The price correction is complete, and yields are falling again for all asset classes. International players are expected to return after the previous domination of the market by Austrian investors and private buyers.

The Vienna office market is caught between a shortage of supply and structural changes. Remote working and the economic situation are dampening demand for another year. However, vacancy rates are only increasing slightly as the office pipeline remains demand-oriented. Rents are rising, especially in good locations.

The excess demand in the Vienna logistics market was reduced in 2024 as completions soared. In 2025, however, the discrepancy between completions and take-up should narrow again. Rents are likely to continue rising, especially in well-located prime properties with particularly high-quality features.

In retail, the necessary momentum to increase sales did not materialize in 2024. However, in 2025, the luxury sector could gain importance again with several market entries and unbroken demand. Entertainment concepts and discount stores are also continuing to advance.

The repeated declining completion of new living units is putting pressure on cities in Austria and driving up rental prices. As a result, voices in the construction industry are increasingly calling for supportive measures from the Austrian federal government.

The Austrian hotel industry benefited from record tourism figures in 2024. In addition, the asset class has regained importance in the investment market. These trends should continue in 2025.

Environmental awareness continues to be rewarded in the real estate industry. It has once again been proven that ESG measures such as building certifications lead to a price premium in achievable rents in Vienna.