According to the first Vienna New Construction Report, residential construction in the federal capital is at risk of entering a deep crisis. A decline in completions of around 42 % is forecast for 2025 compared to 2023. The number of residential units will fall from 16,108 to only around 9,400.
The commercial sector, which accounts for two thirds of new construction, is particularly affected. Rising financing costs and uncertain economic conditions are slowing down construction activity here. In contrast, the non-profit building associations (GBV) are proving to be a stabilizing factor. They are currently responsible for around a third of new builds and make a significant contribution to the supply of affordable housing. A slow recovery is expected from 2026, provided that financing conditions improve and planned projects are realized. Despite the decline in quantity, the quality of the units built is rising continuously.
It is clear that Vienna's housing sector is facing major challenges. A rapid adjustment of financing conditions and targeted support measures are required to revive new construction activity and meet the demand for affordable housing.