Salzburg Real Estate Market: 2024 Recap & 2025 Outlook
The Salzburg real estate market saw significant shifts in 2024. Rising interest rates and stricter financing conditions led to a noticeable market slowdown. While demand remained strong, the number of completed sales transactions dropped. Prices for used apartments and single-family homes declined, while the rental market experienced a surge, driving rents higher.
So, what happened in 2024 — and what’s next for 2025? Let’s break it down.
What additional costs are incurred beyond the purchase price?
Used Apartments: Bargain Hunters Rejoice
The market for used apartments took a hit, with prices dropping an average of 10% compared to 2023. While premium locations in the city retained high price tags, suburban areas and less popular districts saw steeper discounts. Buyers who were flexible and willing to compromise had the chance to score some excellent deals.
New Builds: Slow Progress, High Prices
The new construction sector remained sluggish due to rising building and financing costs. Many projects were delayed or scaled down, leading to fewer new properties entering the market. This kept prices high. However, motivated developers offered discounts and special incentives, creating opportunities for savvy buyers.
Building Land & Single-Family Homes: A Buyer’s Market?
For the first time in years, land prices showed a slight correction. With reduced construction activity and cautious buyer interest, plots of land in certain areas became more affordable. Similarly, demand for single-family homes weakened, forcing many sellers to lower their asking prices to attract buyers.
2025: Stability on the Horizon?
Experts predict that 2025 will bring more stability to Salzburg’s real estate market. Interest rates are expected to have peaked, restoring a sense of financial predictability and potentially encouraging more buyers to take the leap. However, financing will remain a challenge for many.
A few key factors could fuel demand:
- New housing subsidies
- Lower interest rates
- The removal of KIM regulations At the same time, used properties will remain attractive — especially for those looking for a more affordable alternative to expensive new builds.
The Rental Market: A Game-Changer?
Rents have been rising, and with purchase prices stabilizing, buying a property could become more appealing for those currently renting. If this trend continues, more potential buyers may reconsider renting in favor of homeownership.
Final Thoughts: A Market in Transition
After a year of shifts and corrections, 2025 could mark the beginning of a more balanced market. Buyers should still do their homework and secure strong financing, but current conditions may offer great opportunities for both investors and owner-occupiers.
One thing remains clear: Salzburg’s real estate market is here to stay—thanks to its strong demand, high quality of life, and enduring appeal.