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Residential real estate in Salzburg & Vienna

Extending a rental agreement: What tenants and landlords should know

When extending a fixed-term tenancy agreement in Austria, the statutory regulations must be observed. An extension must be in writing and have a minimum duration of three years. If the tenancy agreement is extended, a new waiting period of one year begins for tenants before they can terminate the tenancy. A three-month notice period to the end of the month must be observed. However, this regulation can be adjusted contractually.

In an open tenancy, the landlord can increase the rent when the contract is extended. However, this should be done within the framework of the statutory provisions and in consultation with the tenant.

Overall, it is clear that a proper extension of a fixed-term rental agreement requires a written agreement for at least three years. Tenants should be aware of the new notice periods, and landlords have the option of adjusting the rent under certain conditions.

Condominiums in Vienna: demand on the rise 

After a challenging year, the Viennese condominium market will be much more dynamic again in 2025. The combination of lower key interest rates and persistently high rents makes condominiums appear more attractive again for many buyers. Whether for owner-occupation or as an investment. Marketing times have also shortened, which indicates increased interest. Sellers are currently benefiting from improved market sentiment. 

Rental apartments in Salzburg: Central locations particularly in demand 

The rental apartment market in Salzburg remains tight. Particularly in centrally located districts, interest significantly exceeds the available supply. Current market analyses show: Demand for rental apartments in inner-city areas is around 9.7 % higher than for other property types. There is also growing interest on the outskirts of the city, especially in easily accessible residential areas with a high quality of life. The current market situation offers attractive opportunities for owners who are thinking about letting.  

Rents in Salzburg are rising faster than inflation 

Rents in Salzburg have risen significantly in recent years, well above the general rate of inflation. An average 70-square-meter apartment now costs around EUR 1,246, while the comparable figure in 2020 was still around EUR 924. This corresponds to an increase of over 34%, while inflation in the same period was around 24%. This development shows that living space remains a sought-after commodity in Salzburg. For landlords, this means attractive yield opportunities, while for tenants the pressure on affordable housing continues to increase.  

Financing 2025:Interest rates - new opportunities for buyers 

Following the turnaround in interest rates in recent years, there are signs of a noticeable easing on the financing market in 2025. Several banks have already adjusted their conditions with falling borrowing rates and more attractive offers for home loans. This development makes buying a property more attractive again.  

References

What our customers and partners in the residential sector say.

Kroy Wohnen K - Kroy Real Estate

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