Vienna's housing market is noticeably lagging behind other major European capitals. According to data compiled by Bloomberg, housing prices in the Austrian capital fell by 12.2% from their peak a year ago, while in Stockholm, the decline was 6.4%. But Madrid, Milan, and Zurich, for example, showed growth in the period.

Here's how, according to Bloomberg, the current prices per square meter in nine key European capitals look:

  • London—€8,346
  • Dublin €5,467
  • Madrid €3,977
  • Milan—€5,213   
  • Paris—€11,134
  • Vienna—€7,084
  • Zurich—€15,934
  • Stockholm—€7,110
  • Berlin—€5,143

Relocation to Austria. What you need to know before packing your bags: only important information and personal experience

The reasons for the fall in activity and prices in the real estate market in Vienna are several: 1) the local rental market is very lively and is an alternative to property (more and more Viennese families are staying in rented apartments); 2) the city has recently introduced stricter mortgage rules, which exacerbate the decline: the volume of new home loans to Austrian households fell by more than 60% compared to the year before.

As a result, the price per square meter averaged €7,084 in May 2023. Experts expect continued sluggish demand as well as cautious and slow market adaptation.