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Property prices in Tirol: 34% higher than 6 years ago

ImmoDEX is the annual property prices report compiled by Immobilienscout which analyses average property prices across Austria and its Bundesländer.

This year’s edition (published 1 March 2017) makes encouraging reading for property investors throughout Austria and especially in Tirol which has posted the highest regional gains in values since 2010.

tirol gains
At Kristall Spaces, we have been helping owners of our ski properties to resell apartments with a typical 4 to 5% price increase applied per annum on top of the original purchase price of the newly built apartments.

There is plenty of demand for any high-quality product in the right location offering altitude skiing or heavy annual snowfall, easy access and increasingly summer tourism business. It is worth noting that 51% of visitors to Austria now come in Summer (source: Tourism-review.com).

We are expecting the property price trend in Tirol to continue upwards thanks to supply being carefully controlled by local councils and development managed to protect local communities and their livelihoods.

Average prices in Austria are much lower than France and Switzerland (by up to 28% according to Savills) but thanks to ongoing infrastructure investment and a growing international skier base, there is room for upward price movement here.

Each year, more EU and non-EU buyers are coming into the Austrian property market thanks to increasing visitor numbers and their long-term dream of a foreign property investment which delivers capital growth, an annual profit from renting and free holidays in a healthy and safe environment, all-year round.

With a keen eye on the future, the Austrians lead the way when it comes to attracting new visitors to the mountains each year, especially younger consumer groups (Generation Y).   For a moment, consider Area 47 in the Ötztal: the de facto summer tourism innovation comprising over 20,000m² of extreme outdoor and water park activities, including wakeboarding at 812m above sea level.

wake
It is not surprising that the Tirol region alone delivered a >10% increase in tourist visits in the first 6 months of 2016 outpacing all international alpine holiday markets.

One final piece of research published on 27 February 2017 by Statistik Austria: the fastest growing category of accommodation booked by tourists to Austria in 2016 was commercial apartment bookings (i.e. tourism residences as built by Kristall Spaces) which grew by 9.4% year-on-year.