Economic uncertainty, high interest rates, and rigid lending conditions continued to impact the Austrian real estate market in the past year, albeit in a more moderate way. According to a recent analysis by the Compass Group and Data Science Service, the transaction volume for property purchases in 2024 decreased by 0.7% to 24.1 billion euros. At the peak of the real estate boom in 2021, the transaction volume had been 43 billion euros.
However, the market developed differently across the Austrian provinces in 2024. The largest decline in transaction volume compared to 2023 was recorded in Styria (-15.5%). There were also declines in Burgenland (-13.6%), Carinthia (-11%), Upper Austria (-10.3%), and Tyrol (-94%). On the other hand, the real estate market in Vorarlberg (+7.1%) and Lower Austria (+5.1%) saw positive growth. Vienna, however, recorded a significant increase of 15.9%, reaching 6.65 billion euros.
Mostly Private Real Estate Transactions
The majority of real estate transactions were between private individuals: 43,502 transactions among private individuals generated about 11.39 billion euros. There were 12,427 transactions where companies sold property to private individuals, generating nearly 5 billion euros. The analysis also looked at transactions between companies, with 2,578 transactions accounting for approximately 4.62 billion euros.
The transfer of ownership in connection with mortgage deeds decreased by almost 38%. There were no significant fluctuations in donations and inheritances compared to the previous year. A noteworthy aspect of the real estate market involves share deals, where shares in companies owning real estate are sold. Since the direct owner—the company—remains unchanged, no property transfer tax is due. In 2024, 1,082 companies with 7,742 properties were affected by share deals, with 278 companies transferring more than 95% of their shares in 1,022 properties.
The analysis used data from the land register and the company register, with February 18, 2025, as the reference date.
