How has the coronavirus pandemic impacted Vienna’s property market?

How has the coronavirus pandemic impacted Vienna's property market?
Photo: DPA
Real estate prices have skyrocketed in Vienna despite the coronavirus pandemic. Is it possible to still find a bargain?

Anyone hoping that the coronavirus pandemic would dampen rising property prices in the Austrian capital was in for a rude shock. 

Figures from the third quarter of 2020 show that property prices have increased in 19 of the city’s 23 districts, with some increasing by up to 16 percent. 

READ: Is it better to buy or to rent property in Austria?

On the whole, property costs increased by an average of seven percent across Vienna. 

The study was completed by Austrian real estate site Immowelt

While supply has increased to help match demand in Vienna, the majority of new apartments have been in the ‘luxury’ category – complete with roof terraces and gardens – meaning that overall prices have seen an increase. 

The report compared prices in 2019 and prices in September 2020. 

Where are prices on the rise? 

Prices rose by a massive 16 percent in the upmarket Währing district, home to Austrian Chancellor Sebastian Kurz. 

Leopoldstadt saw an increase of 14 percent, while prices in Mariahilf and Neubau rose by 13 percent. 

Prices increased in 15 other Vienna districts (see full table below). 

According to the authors, central districts as well as those close to public transport saw the biggest increases. 

“The well-connected districts close to the city centre are particularly popular with property developers and seekers. The strongest increase of all Vienna districts is therefore in Währing (as this district embodied all of these factors).”

Where did prices fall? 

Prices only fell in three of Vienna’s 23 districts – while they stayed the same in Ottakring.

There was a one percent price fall in Hernals, while Meidling saw a relatively large six percent decline. 

The final district to fall was Vienna’s Innenstadt – by around three percent – although bargain hunters will be disappointed to see that prices are still double pretty much any other district in the city at €11,800 per square metre. 

“If you want to buy an apartment there, you have to reckon with prices above the million mark,” the authors wrote.

“This is mainly due to the fact that the already limited supply in the centre is mainly limited to the luxury area.”

Where can I find a bargain? 

If you’re looking for a bargain on a new apartment, you’d probably be best to look outside Vienna considering overall prices rose by seven percent within a year. 

Even in the cheapest parts of the city, prices were on the rise, including Favoriten (7%), Simmering (10%), Floridsdorf (7% and Liesing (6%). 

According to the authors, the distance to the city as well as the comparatively modest offerings available in these areas have contributed to the lower prices. 

“The fact that the purchase prices are significantly cheaper in the outskirts is due to the location, but also to the structure of the offerings,” they wrote.

“Compared to the centre, buyers will find significantly more existing apartments with average equipment on the outskirts.”

Overall summary: 2019 average to 2020 average and percentage increase (from

Vienna total 4,260 EUR 4,570 EUR + 7% 

1st Innenstadt 12,140 EUR 11,800 EUR -3% 

2nd Leopoldstadt 4,750 EUR 5,430 EUR + 14% 

3rd Landstrasse 4,790 EUR 5,180 EUR + 8% 

4th Wieden 5,640 EUR 6,030 EUR + 7% 

5th Margareten 4,300 EUR 4,560 EUR +6 % 

6th Mariahilf 5,190 EUR 5,860 EUR + 13% 

7th Neubau 5,190 EUR 5,860 EUR + 13% 

8th Josefstadt 6,410 EUR 7,070 EUR + 10% 

9th Alsergrund 5,410 EUR 5,960 EUR + 10% 

10th Favoriten 3,640 EUR 3,880 EUR +7 %

11. Simmering 3,650 EUR 4,000 EUR + 10% 

12. Meidling 4,260 EUR 4,010 EUR -6% 

13. Hietzing 4,600 EUR 5,140 EUR + 12% 

14. Penzing 4,060 EUR 4,240 EUR + 4% 

15. Rudolfsheim-Fünfhaus 4,050 EUR 4,290 EUR +6 % 

16. Ottakring 4,250 EUR 4,230 EUR 0% 

17th Hernals 4,270 EUR 4,210 EUR -1% 

18th Währing 4,680 EUR 5,450 EUR + 16% 

19th Döbling 4,830 EUR 5,310 EUR + 10% 

20th Brigittenau 3,890 EUR 4,170 EUR +7 %

21. Floridsdorf 3,840 EUR 4,090 EUR + 7% 

22. Donaustadt 4,140 EUR 4,250 EUR + 3% 

23. Liesing 3,860 EUR 4,090 EUR + 6% 

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