A significant change is emerging in the Vienna housing market. While the demand for housing remains a central issue in city politics, the number of new commercial rental apartments could massively decline next year. For 2027, only 494 completions are announced according to the current data status – around 80 percent less than in 2026. This is according to the latest new construction report from the Vienna Chamber of Commerce.

The report was commissioned by the specialist group of real estate and asset trustees and evaluated by the real estate data company EXPLOREAL. The figures are based on the data status as of October 1, 2026.

The development is particularly pronounced in commercial rental apartments. These are apartments built by commercial developers for rental purposes. While 2505 completions are expected for 2026, only 494 units have been announced for 2027 so far.

This corresponds to a decline of around 80 percent. Nicole Fürntrath, chairwoman of the specialist group of real estate and asset trustees in the Vienna Chamber of Commerce, sees this as a clear warning signal.

„What is not built today will be missing in the housing market tomorrow,“ Fürntrath explained in a statement.

She calls for better framework conditions for housing construction, including faster approval processes, planning security, and viable financing options. However, the figures for 2027 are a forecast based on already published construction projects. Additional projects could be added or delayed.

Not only the commercial rental segment is under pressure. The total number of completed apartments in Vienna is also expected to continue to decline. In 2025, a total of 11,404 housing units were completed according to the new construction report. This was about 17 percent less than the previous year.

Currently, 10,336 new apartments are expected for 2026. In 2027, the number could decrease to 9651 units.

This would mean that Vienna would fall below the mark of 10,000 annual completions for the first time within the depicted period. While moderate growth is expected nationwide for 2026, the decline in Vienna continues according to the report.

The development does not affect all areas of the housing market equally. In the case of commercial condominiums, an increase is even emerging. For 2026, 3051 completions are expected, and for 2027, 3961 units are currently announced. This corresponds to an increase of nearly 30 percent.

The forecasted decline is significantly smaller for non-profit rental apartments. Here, the number decreases from 2740 in 2026 to an expected 2678 in 2027.

The sharp decline thus primarily affects the commercial rental segment. According to the report, the increase in condominiums is not sufficient to compensate for the overall decline.

In parallel with the declining construction activity, the asking prices for new apartments are rising. According to the Vienna Chamber of Commerce, these are currently 5.8 percent above the previous year’s level. It is important to distinguish between asking prices and actual purchase prices achieved.

The stated values show the prices at which apartments are offered. Whether these amounts are actually achieved in sales cannot be directly inferred from this.

Also, the increase in asking prices does not automatically mean that all rents in Vienna have risen to the same extent.

Fewer new rental apartments could limit the supply for apartment seekers in the future. However, the extent to which this affects actual availability and rental prices cannot be determined from the new construction report alone.

Other factors play a role in this, including existing rental apartments, apartments becoming available, demand, as well as developments in subsidized and non-profit housing.

Nevertheless, the Chamber of Commerce warns that persistently low new construction activity could lead to problems in the housing market in the long term.

For the Vienna real estate industry, the development is a cause for concern. Industry group chairwoman Fürntrath calls for conditions under which new housing projects can once again be economically viable. She specifically mentions planning security, faster approvals, and financing options.

The current report also shows that the various housing segments are developing differently.

Whether the announced completions for 2027 will actually occur to this extent will only become clear as the project progresses.

(Red)

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