Vienna Rent Indexation: Price Increases, Laws, and Advice for 2025

rent including utilities in the country in 2024 , with Vienna being above average.

For many families, this means rent is the main budget item, directly impacting their standard of living.

By 2025, the situation had worsened: prices were rising faster than wages, and the government even imposed a temporary moratorium on automatic rent indexation until April 2026. This represents a respite for renters, but a loss of income for apartment owners.

In this article, I'll explain in simple terms how the rental market works in Vienna, why prices are rising, how indexation works, and when it can be challenged. We'll look at real figures, calculation examples, real-world cases, and new laws. This article will be useful for both those planning to move to Austria and investors looking to rent out their property.

Before we talk about indexation, let's look at what prices are currently on the market and why they continue to rise.

Rent in Vienna varies greatly depending on the neighborhood and type of property. On average, rent ranges from €9 to €13 per square meter (excluding utilities). However, the actual cost will vary depending on the specific property.

Average rent in Vienna by apartment type (2025)

Comparing districts, the difference is also striking. In the center (1st district, Inner City), prices can reach up to €27/m², while on the outskirts, for example in Floridsdorf or Liesing, you can find options for €9–11/m².

I often remind clients that prices in central Vienna are almost always higher not because of the apartment's condition, but because of the address. The question is how important location is to you.

Population growth. In 2024, Vienna's population increased by approximately 22,500 people. This growth is primarily due to migration: in 2024 alone, nearly 180,000 people arrived in Austria, of which approximately 68,000 settled in the capital.

A shortage of new apartments. Vienna needs at least 10,000–11,000 new apartments each year. However, only 5,000–6,000 are actually built . Meanwhile, the existing housing stock is shrinking due to demolitions and major renovations.

Elite new buildings. More and more premium housing is being built, with rents significantly higher than average. This affects the overall statistics.

Inflation and indexation. Even with price freezes, some contracts (for example, vacant new buildings) continue to be indexed to inflation.

Rising demand and a shortage of supply inevitably push up rental rates. Here's a look at the dynamics in figures: by the end of 2024, the average rent nationwide (including all apartment sizes) had increased by 4.5% (compared to 7.4% the year before).

In Vienna, growth is also double-digit (several percent year-on-year), significantly exceeding national inflation. As can be seen, even without any sharp fluctuations, the trend is steadily upward.

Before delving into indexation, it's important to understand that rent prices in Austria don't operate on their own; they are controlled by law.

The main document is the Rental Act ( Mietrechtsgesetz , abbreviated MRG). It regulates almost everything: from rent amounts to the rights of tenants and landlords.

There are two major market segments in Austria:

Old housing stock (built before 1945 and some buildings after). Here, the law applies fully. The price is calculated according to state-established standards, known as the "base rate." Currently, in Vienna, this is €6.67 per square meter (fixed until April 2026 due to a moratorium).

New housing stock (modern buildings, especially those built after the 2000s). Here, owners can set prices freely, without strict restrictions.

To navigate the old housing stock, a system of apartment categories is used:

For categories A–C, there is a price cap. Category D is rarely used in practice; it's more of a historical norm.

I often advise my clients: if you want long-term stability, look for housing in older buildings covered by the MRG law. Price growth there is always limited.

The rules for foreigners are almost the same as for local residents. The law explicitly prohibits discrimination based on citizenship—you can't be denied entry simply because you're not Austrian.

But in practice there are nuances:

• usually require proof of income or employment in Austria;
• They may ask for a letter of recommendation from the previous landlord;
• Most often they take a deposit in the amount of 3 monthly payments (sometimes up to 6).

The main challenge for foreigners is competition. In Vienna, demand for apartments is higher than supply, so good options sell out quickly.

Now let's move on to the most important issue: indexation. This is what raises the most questions among tenants and investors.

Indexation is an automatic adjustment of rent based on inflation. The basis for the adjustment is almost always specified in the contract.

The consumer price index (CPI) published by Statistik Austria . For example, in July 2025, the index showed a 3.6% increase compared to the previous year.

Calculation example:

• your basic rent is €1,000;
• the index rose by 3.6%;
• new rent = 1,000 × 1,036 = €1,036.

The tenant receives notice of any rent increase in advance (at least 14 days before the first new payment is due). The increase is never retroactive.

When you sign the contract, look for a clause about indexation. It should say:

• what specific index is used (most often CPI);
• how often is the recount carried out (usually once a year);
• the date from which the indexation is valid.

If this clause is missing, the landlord has no right to raise the price without reason. The only option is to enter into a new contract.

No. The law requires the landlord to notify the tenant and explain the calculation. It's not possible to "pluck" a new amount out of thin air. If you receive notice of an increase:

• check that it complies with the formula in the contract;
• make sure that the growth does not exceed the inflation rate;
• If in doubt, contact the Housing Arbitration (

To ensure that the topic of indexing does not remain dry theory, let's look at how it looks in practice.

Let's take two examples from real life.

A 40 m² apartment. The average net rent for such an apartment in Austria is approximately €405 per month. Add €100 in utilities, for a total of €505. At 4% inflation, the base rent would rise to €421, and with utilities, approximately €521.

The apartment is 80 m². The national average rent for this size is €796.50 (excluding utilities). Let's assume that including expenses, the rent is €880. With a 5% indexation, the rent would increase to €924.

Growth is always roughly equal to inflation. If store prices rise by 5%, rent will also rise by 5%.

Sometimes, inflation indexation isn't enough—the landlord has invested in the property and wants to offset the costs. The law allows for the addition of a "repair allowance" ( Erhaltungsbeitrag ). For example:

• Basic rent for a 60 m² apartment – ​​€600;
• the owner did a major renovation of the kitchen and agreed on +30 €;
• a year later, the 4% index gave another +24 €;
• The final rent was €654.

In luxury apartments, indexation works the same way, but the starting price is higher. A €2,000 apartment with 5% inflation will cost €2,100 after a year.

We usually talk about rising prices, but there are also situations when rent can be reduced.

Austrian law allows rent reductions if the apartment does not meet the terms of the contract or has become uninhabitable. Typical cases include:

• There is no heating or hot water. If the boiler or radiator is broken, the home is considered partially uninhabitable.
• Mold and dampness are not just cosmetics, but a real health threat.
• Constant noise. For example, renovations at a neighbor's place or construction in the yard, if it lasts for months.
• Structural defects. Leaky roof, broken elevator, electrical problems.

The amount of the reduction depends on the problem. If there is a complete lack of heating, courts often reduce the rent by 30-50%. If it's a temporary inconvenience, the reduction is 10-20%.

1. Document the problem. Take photos and collect repair reports or receipts.
2. Notify the landlord. Preferably in writing (email or registered mail).
3. Allow time for correction. Usually 2-3 weeks is sufficient.
4. Ask for a temporary fee reduction. Specify a specific percentage.
5. If you are refused , contact the Housing Arbitration Court or the court.

I always tell my clients: if there are serious defects in the apartment, you are not obligated to pay full rent. The main thing is to act legally and document the problem.

The issue of indexation is important not only for tenants but also for those renting out their property. For investors, it directly impacts their profitability.

Rent increases help owners maintain profits even in the face of inflation.

Example:

• the apartment is for rent for €1,200;
• inflation 4%;
• in a year the rent will increase to 1,248 €.

It seems like a small change – just €48 per month. But over the course of a year, that's almost €600, and over 10 years, more than €6,000.

That's why proper indexation is a capital protection tool. It helps offset rising costs for repairs, utilities, and taxes.

Always act legally. Ensure that indexation is specified in the contract and does not exceed the agreed-upon amount. Provide the tenant with ample notice (it's best to give a day or two more than required). This builds trust and reduces the risk of conflict.

Consider repairs and improvements. If you plan to renovate before renting out, include this in the contract or in the one-time rent payment. The tenant should know exactly what they're paying for. After the renovations, negotiate compensation for the costs—but remember, everything must be legally formalized.

Maintain good communication. Clearly explain any increases, and let the tenant see the calculations. The best strategy is to explain why the rent is increasing rather than suddenly throwing out a new bill. Transparency often retains tenants and reduces turnover in "busy" apartments.

Check solvency. Before signing a contract, consider a surety or deposit (up to three monthly payments) – this will reduce the risk of underpayment. However, don't demand excessive guarantees simply out of fear of a foreign tenant: as already stated, the law prohibits discrimination.

Use property managers. If you have multiple apartments or limited free time, hire a professional property management service (Hausverwaltung). They understand local nuances, monitor legislative updates (such as changes to the moratorium on indexation), and help avoid fines.

I always tell landlords: a stable tenant is half the battle. It's better to raise the rent by 3% as required by law and keep the tenant than to lose a tenant and have the tenancy vacant for months.

To complete the picture, it is necessary to mention the latest changes: they are already influencing the market today.

Rent Moratorium. In spring 2025, the Austrian Parliament passed a law that froze automatic rent increases for most regulated apartments until April 2026. This means:

• The base rate in Vienna (the so-called “indicative tariff”) is fixed at 6.67 €/m²;
• the usual increase in April 2025 did not occur;
• From April 2026, growth will be limited: only up to 5% of inflation can be taken into account, and anything above that will be halved.

For tenants, this is a relief. For investors, it means lower profits in the coming year.

Austria and Europe: Where Rents Are Most Expensive. Vienna is among the most expensive European capitals in terms of rent. According to Eurostat , the average two-bedroom apartment for expats in 2023 cost around €2,050 per month (excluding utilities). This is more expensive than Brussels or Prague, and comparable to Berlin.

Since 2010, rents in Austria have increased by around 70%, while the EU average has increased much less.

What's next for the market? Experts predict. They agree: Vienna's housing shortage will only grow. Every year, the city needs at least 4,000–5,000 new apartments.

This means rents will remain high. Even with the moratorium, the long-term trend is clear: demand will exceed supply.

I always tell my clients: there are no bad neighborhoods in Vienna. There are neighborhoods with great growth potential. Sometimes it's more profitable to invest in the outskirts than in the prestigious center.

Renting in Vienna is always a balancing act between regulations, prices, and personal circumstances. On the one hand, the law protects tenants: rents cannot be increased suddenly, and rents can be reduced if defects are detected. On the other hand, indexation is inevitable, and prices will rise in line with inflation.

To avoid overpaying and feel confident, keep a few rules in mind:

• Compare neighborhoods. A 10-15-minute metro ride can save you hundreds of euros per month.
• Read the contract. The indexation clause should be clear: what index, how often, and from what date.
• Report problems. If something breaks, contact the owner immediately. The law is on your side.
• Seek support. Vienna has a housing assistance program called Wohnbeihilfe. If you meet a certain income threshold, you can receive compensation from the city.
• For investors. Transparency and honesty are more important than quick profits. It's better to keep a tenant for years than to risk an empty apartment.
• Use reputable agents. Experienced agents know the ins and outs and can often offer life hacks—for example, looking for rentals from owners of small apartments where you can negotiate the price, or checking new buildings in recent months—they often have special offers (like the first month free or a reduced deposit).

And the main advice: treat renting as a long-term strategy. Then, even as prices rise, you'll be able to manage the situation rather than just drifting with the flow.