Real estate guide

Real estate: Prices in the Ländle are likely to fall further

Despite falling prices: Vorarlberg is still an expensive place when it comes to real estate.

(Bild: Harald Kueng)

A lot has changed on the Vorarlberg real estate market in 2024: Demand for pre-owned properties has risen, while interest in new builds has collapsed. The good news for all potential buyers: prices are likely to fall further in 2025. 

The strict capital adequacy requirements imposed by the KIM Regulation, significantly higher interest rates and the general rise in the cost of living have noticeably curbed demand for residential property. Those who are nevertheless buying are paying close attention to the price: "Currently, the existing market clearly has priority over new purchases," says Martina Hirsch, Managing Director of "s REAL Vorarlberg", which is part of Sparkasse. The background: "Used properties score points due to their better price-performance ratio. However, those who prefer new builds have to sacrifice space for the same price."

Dornbirn district the exception to the rule
Apart from this fundamental finding, the detailed results of the recently published Sparkassen-Immo-Guide are also interesting. In 2024, for example, prices developed very differently in the country's political districts: While the total purchase price in Dornbirn remained stable compared to the previous year, it fell noticeably in all other districts and is below EUR 400,000 on average.

5000 euros per square meter
The real estate experts at Sparkasse also expect prices to fall slightly in 2025. However, this will still be at a very high level: next year, for example, second-hand, well-equipped condominiums in Dornbirn and the surrounding area can be expected to cost an average of €5,000 per square meter. Well-equipped rental apartments with a living space of 65 square meters or more will cost an average of EUR 14 per square meter in the same region.

In 2025, more people are also likely to buy again. This is because, as we know, interest rates on loans have become more favorable and further interest rate cuts are expected. "The supply is good, prices are lower than in previous years. However, it is very unlikely that the abolition of stricter capital adequacy requirements alone (note: the KIM regulation will be abolished) will become a game changer on the real estate market in 2025," says Christian Hagspiel, Co-Managing Director of "s REAL Vorarlberg".