In 2025, residential property prices increased by 2.1 percent nominally but declined in real terms due to significant inflation, as reported by the Austrian National Bank (OeNB). But appearances are deceiving: since the inflation rate was 3.8% in the same period according to Statistics Austria, real estate has actually become cheaper when adjusted for inflation. This trend is particularly evident when viewed over the long term since the interest rate turnaround in fall 2022. It is only since the key interest rate cuts in June 2024 that transactions have slowly picked up again in this sector. The ECB lowered the deposit rate in several steps during 2025, which stabilized construction interest rates for end consumers.