The dream of home ownership is alive and well - even in 2025. Despite high ancillary costs, buying a home remains attractive for many Austrians. With the right preparation, up-to-date market knowledge and an easing interest rate situation, the path to owning your own home can be successfully mastered.
1. market overview: What can buyers expect in 2025?
The Austrian real estate market will be stable in 2025, but with regional differences. Prices remain high in Vienna and the western federal states, such as Salzburg, while rural regions offer affordable alternatives. Demand for existing properties has risen, partly because new construction activity remains weak. At the same time, falling interest rates are making financing somewhat easier again.
2. financing: equity and credit strategies
A solid equity capital of at least 20 % of the purchase price is still recommended. It is also important that the monthly loan installments do not exceed 30-40 % of the net household income.
Current developments:
- Interest rates for real estate loans fell significantly in May 2025.
- The KIM regulation (Kreditinstitute-Immobilienfinanzierungsmaßnahmen-Verordnung), which since August 2022 has prescribed stricter rules such as a maximum of 40 % budget burden, 20 % equity requirement and a maximum loan term of 35 years, expires on June 30, 2025. From July 1, 2025, banks will once again have more leeway when granting loans - which will benefit young buyers in particular.
Tip: Professional financial advice before buying a property will clarify how much house you can afford - without any surprises.
3. ancillary costs: these expenses are added
When buying a house, the following additional costs are incurred in addition to the purchase price:
- Real estate transfer tax: 3,5 %
- Land register fee: 1,1 %
- Broker commission: up to 3 % plus 20 % VAT
- Lien registration: 1.2 % (for mortgage)
- Contract drafting & notary: approx. 1-3 %
Rule of thumb: Expect a total of around 10-12 % of the purchase price for ancillary costs.
4. choice of real estate: Location, condition and energy efficiency
Choosing the right house doesn't just depend on your budget.
Important criteria:
- Location: Infrastructure, local amenities, schools, transport links
- Condition: Renovation requirements, year of construction, modernizations
- Energy efficiency: A valid energy certificate is mandatory
Tip: Pay attention to the need for renovation and possible follow-up costs. An independent expert can help with the assessment.
5 The buying process: step by step
- Secure financing: Clarify credit line in advance
- Search for a property: Compare portals, estate agents, exposés
- Make a purchase offer: Submit a written offer
- Purchase contract: Preparation by a notary or lawyer
- Escrow account: Securing payment of the purchase price
- Land register entry: Securing the transfer of ownership
Checklist: Buying a house in Austria 2025
- Determine your budget: Calculate equity, monthly affordable installment
- Obtain a financing offer (compare at least 2-3 banks)
- Observe KIM regulation (even if expired - know standards)
- Check subsidies (e.g. housing subsidies, renovation grants)
- Allow for additional costs (approx. 10-12 % of the purchase price)
- Prepare credit check (salary statements, household accounts)
- Critically check energy certificate and building condition
- Analyze the situation: Infrastructure, public transport, value development
- Check reservation agreement (not legally binding!)
- Formulate a binding purchase offer in writing
- Instruct lawyer/notary for contract review and trust settlement
- Create handover protocol (incl. photos, meter readings, keys)
- Checking/concluding insurance policies (building, fire, liability)
- Prepare address changes and re-registrations
- Finalize financing and coordinate disbursement
Key Takeaways
- Market 2025: Stable with opportunities in peripheral locations
- Financing: Use own funds & falling fixed interest rates
- Additional costs: Plan for up to 12 additional %s
- Energy & location: Ensuring value retention
- Purchase process: Going step by step with professionals
Conclusion: Find out now and buy prepared
Buying a home in 2025 places high demands on planning and financing - but also offers attractive opportunities. Those who prepare well, calculate realistically and rely on professional support can now fulfill their dream of owning their own home.
Get non-binding advice now and take the first step into your own home!
