Rent prices in Vienna have risen by 9%
In the first quarter of 2025, rental prices for apartments in Austria surpassed €20 per square meter for the first time in the regions of Tyrol, Vienna, and Salzburg, as per a recent analysis by real estate platform ImmoScout24. The report revealed an average increase of 4% to 14.90 Euro per square meter, boosting gross rents in these regions.
Tyrol emerged as the costliest region with an average of €20.74 per square meter, representing a 5% surge from the previous year. Vienna followed closely with €20.42 and Salzburg, showing the highest increase of 13%, at €20.25. Vorarlberg recorded rental prices well above the Austrian average at €19.05.
In contrast, Upper Austria (€12.01), Styria (€12.41), and Lower Austria (€12.44) remained more affordable. Carinthia and Burgenland presented square meter prices of €13.80 and €13.06, respectively.
Despite a slight increase in homeownership interest, the demand for rental apartments was reported to be decreasing slightly, according to ImmoScout24. Nevertheless, the availability of rental properties remained scarce, contributing to a tense rental market. Markus Dejmek, the Austrian CEO of ImmoScout24, noted that the scarcity of apartments for rent continues to place the seekers in a challenging position, as demand continues to outpace supply.
The analysis was based on approximately 117,000 apartment listings spanning the quarters of 2023 to 2025. It examined gross rents, which encompass net rent plus operational costs, excluding heating and electricity costs. The median was employed as a statistical measure.
Factors driving the skyrocketing rental prices in Tyrol, Vienna, and Salzburg include regional demand and limited supply, economic and demographic factors, inflation and construction costs, and government policies and regulations. These factors have contributed to the significant increase in rental prices in these regions.
References:[1] ImmoScout24 (2025). Quarterly rental price analysis Q1 2025. Retrieved from https://www.immoscout24.at/mietindex/[5] Klinger, L. (2024). The rental market in Austria: An overview and analysis. Retrieved from https://www.immobilienscout24.at/stories/mietmarkt-in-oesterreich-eine-uebersicht-und-analyse/
The finance sector may find interest in the housing-market's upward trend, particularly in regions like Tyrol, Vienna, and Salzburg, given the significant increases in rental prices for apartments, as indicated in the Q1 2025 analysis by real estate platform ImmoScout24. Investing in real-estate could potentially reap profits due to the continuous rise in gross rents, attributed to factors such as regional demand, limited supply, and government policies. However, the scarcity of rental properties and decrease in demand for them, according to the same ImmoScout24 report, could present challenges to potential investors.
