Buying a new build in Vienna: what does first occupancy cost, and how does the law protect you?

The essentials in brief

• First occupancy in Vienna 2026: around €5,430/m², second-hand around €3,810/m² (WKO Vienna property price mirror, April 2026).
• New-build prices across Austria rose 4.9% year on year in the second quarter of 2026 (Statistik Austria, house price index, 23 Sep 2026).
• Buying before completion: payment follows instalment plan A or B under the Bauträgervertragsgesetz; 2% is held back until three years after handover, or replaced by a guarantee.
• The developer is liable for defects for three years from handover (warranty for immovable property).
• Incidental costs: 3.5% Grunderwerbsteuer (property transfer tax), 1.1% for the Grundbuch entry, contract drafting and escrow — the contract drafter is usually chosen by the developer.
• If you let the flat, you can as an entrepreneur reclaim the VAT contained in the purchase price (the Vorsorgewohnung model); an observation period of 20 years applies.
• New-build owner-occupied flats built without public funding fall only partly under the Mietrechtsgesetz — the rent can be freely agreed.

What does a new-build flat in Vienna cost?

The property price mirror of the Vienna Chamber of Commerce puts 2026 at an average of €5,430 per square metre for owner-occupied flats in first occupancy and €3,810 for second-hand flats. First occupancy — which covers new builds but also comprehensively renovated flats — thus costs a good 40% more than a second-hand flat, according to the price mirror. The premium buys energy standard, outdoor space, a lift and a garage — and the fact that hardly any refurbishment falls due in the first years.

The price mirror rests on transaction data reported by real estate agents (Immobilientreuhänder) and cross-checked against Grundbuch data, the house price index on actual transactions. For an individual flat both are only a frame: floor, orientation and outdoor space shift the price markedly within the same project. More on the sources on our page Property prices in Vienna.

How does the Property Developer Contracts Act protect buyers?

The Bauträgervertragsgesetz (BTVG) makes sure that when you buy before completion you never pay for more than has already been built. The money flows through an escrow agent — a notary or lawyer — and is only released to the developer once building progress has been confirmed.

The final 2% serves as security against defects; the developer may replace it with a bank guarantee or insurance (§ 10 BTVG). Building progress is confirmed by a surveyor. Which instalment plan applies is stated in the purchase contract.

What incidental costs arise with a new build?

The incidental costs on a new build are almost the same as when buying a second-hand flat: around 10% of the purchase price. Two differences are typical.

• The contract drafter and escrow agent are usually specified by the developer; their fees are often fixed in the purchase contract as a lump sum or a percentage.
• A buyer's commission often does not arise when buying directly from the developer. Whether a new-build project is commission-free is stated in every listing.

Grunderwerbsteuer (3.5%) and the Grundbuch entry (1.1%) are payable on a new build as well. You will find the full breakdown in the guide Incidental costs when buying property, and the commission rules under Agent commission.

New builds as an investment: VAT and tenancy law

If you buy a new-build flat in order to let it, you can as a landlord, under certain conditions, reclaim the VAT contained in the purchase price from the tax office. In return the rent becomes subject to VAT; the input-tax deduction is subject to a 20-year adjustment period — if the tax use changes during that time, the input tax is adjusted pro rata. This is the Vorsorgewohnung (investment flat) model; the details are explained under Investing.

In tenancy law a new build is simpler than a period building: owner-occupied flats in buildings erected after 8 May 1945 without public funding fall only partly under the Mietrechtsgesetz. The Richtwert (the statutory reference rent) does not apply there and the rent can be freely agreed. Subsidised projects, by contrast, are governed by the conditions of the housing subsidy.

Checklist before buying from a developer

Before you sign, you should have seen and understood seven documents. That takes one to two weeks and spares you most of the conflicts that arise after handover.

1. Building and fit-out specification — it is part of the contract; what is not in it, the developer does not owe.
2. Plans and Nutzwertgutachten — the expert report on floor area, outdoor space, cellar compartment and your share in the property.
3. Instalment plan and escrow agent — plan A or B, the name of the escrow agent, the payment route.
4. Completion date and penalty — what happens if the developer misses the date.
5. Energieausweis — heating demand and heating system; it must be presented in good time before the buyer or tenant makes a binding contractual declaration — i.e. before a binding purchase offer (Kaufanbot) — and handed over after the contract is concluded.
6. Operating cost estimate and Rücklage — since 1 January 2026 the statutory minimum amount for the reserve has in principle been €1.12 per m² of the total usable floor area of the condominium units per month. The contribution of the individual flat depends on the allocation key; § 31 WEG provides for exceptions.
7. Special requests — costs, deadlines and who is liable for defects in the altered parts.

Where new building is happening in Vienna

Most of Vienna's new construction is going up in the urban development areas north and east of the Danube and on former railway sites. Examples are Seestadt Aspern in Donaustadt, the Donaufeld and Neu Leopoldau in Floridsdorf, and the Nordbahnviertel in Leopoldstadt. In inner districts such as Landstraße, new building usually takes the form of loft conversions or individual projects.

Part of the new housing is built with subsidy and is only available for purchase to a limited extent. Freely financed ownership is therefore a smaller share of the offer in the large new-build areas than the total number of flats suggests. You will find our current new-build and first-occupancy properties under Buy.