Residential construction in Austria continues its downward trend. The Professional Association of Real Estate and Asset Trustees of the Austrian Federal Economic Chamber (WKÖ) expects 25,200 completions this year. By comparison, around 46,000 units were finished three years ago, and the figure has fallen sharply since then. However, according to Gerald Gollenz, chairman of the association, construction activity is now approaching a point of stagnation—albeit at a very low level.
These figures come from the “1st Austrian New Construction Report” for 2025. The report was prepared by Exploreal on behalf of the WKÖ’s real estate division and presented on Wednesday at a press conference. Compared with 2024, there has been a particular collapse in privately financed rental apartments: after around 7,600 completions in that category last year, only about 4,700 are expected this year.
Open-air living space remains very popular. Of the roughly 102,000 housing units completed between 2023 and 2025, 96 percent feature a private outdoor area—a garden, terrace, balcony or loggia—averaging 11 square metres. “An apartment without an outdoor space is simply not marketable,” said Johannes Wild, deputy chair of Lower Austria’s real estate representatives.
Nationwide, the completion rate between 2023 and 2025 averaged 3.6 units per 1,000 inhabitants. Vienna stood out with almost 6.1 units per 1,000 residents, while Carinthia trailed at about 2.3 units per 1,000.
Industry representatives cited a “cocktail” of negative factors—among them the KIM regulation and rising interest rates—as the cause of the poor performance. “We’re already seeing improvements on both fronts,” said Herwig Pernsteiner, vice chair of the Association of Non-Profit Housing Cooperatives. The European Central Bank’s rate cuts have been welcomed by the industry, and the KIM regulation is due to expire on 30 June. “We all look forward to that, even though we know it may return in another form,” added Gollenz.
“We’re not begging for money. We need administrative simplification and legal reforms,” Wild emphasized. He pointed out that, for thermal renovations, “we still struggle with a Condominium Act that requires unanimity for heating system replacements.” Once again, the sector called for a reduction in bureaucracy.a
