Buy now before property prices rise in 2025

This is a good time to buy an Austrian property before property prices are expected to rise next year in 2025.

The Austrian Chamber of Commerie (WKÖ) predicts that prices will have to rise as there will be a shortage of supply.

Here is a link to the original article https://immo-timeline.at/a/keine-entspannung-an-der-preisfront-fuer-frei-finanzierte-neubauwohnungen

And below you can read an English translation.

Keine Entspannung an der Preisfront für frei finanzierte Neubauwohnungen _ ImmoFokus Timeline en

14 Oct 23 Rising hotel rates and falling inflation: good news for apartment owners 

According to Hotel Monitor 2024 Powered by Amex GBT Consulting, hotel room rates in Europe are projected to increase by double-digit percentages in 2024 providing a welcome boost for serviced apartment owners.

The report forecasts specific rate increases in key European destinations:

  • Munich +7.2%
  • Amsterdam +10.8%
  • Brussels +6.2%
  • Dublin +10.0%
  • London +9.1%

Real estate traditionally acts as a hedge during periods of high inflation as the real estate asset holds its value and rental income can be indexed with inflation.

As costs rise for hotels or serviced apartments, the operator passes on the costs to paying tourists in the form of higher overnight rates creating an inflation-proof model.

Another important factor in the higher prices is the surge in post-pandemic travel thanks to pent-up demand.  According to Tirol Werbung, in the months from May to the end of September, guest arrivals in Tyrol increased by 5.9 percent to 5.7 million, and overnight stays increased by 1.6 percent to 20.5 million.

This coupled with the imbalance between supply and demand for hotel rooms (developers have not been building enough rooms in the last two years) is pushing up the prices on a global scale.

Keith Barr, CEO of IHG Hotels and Resorts, offers his perspective: “We had robust supply growth over an extended period of time, which did keep rates down. It’s just going to support pricing being where it should have been over time, which is great for this industry.”

In Austria, we are also achieving higher rates on our 2024 bookings.

A professional serviced apartment operator like All-Suite Resorts https://www.all-suite.com/ uses yield marketing software by https://hotelpartner-ym.com/ to adjust its overnight rates every 4 minutes to get the highest yield for apartment owners.

As an example, All-Suite Resorts monitors market data and keeps overnight prices high for key Winter season weeks in the knowledge that supply for rooms in a given location will start to fall and prices rise accordingly.

In other words, they achieve a higher price by not selling out too quickly.

Meanwhile, inflation in the Eurozone after peaking at 10.6% has been on the decline over the past year.

In Germany, the annual inflation rate plunged to 4.3% in September from 6.4% in August.

“This likely is the beginning of an accelerated decline” in eurozone inflation, said Claus Vistesen, the chief Eurozone economist at Pantheon Macroeconomics.

So, in summary, it’s a good time to invest in Tirol thanks to falling inflation and rising overnight prices – plus the shortage of hotel rooms thanks to low levels of development in the last 48 months.

Here some other important benefits to consider:

  • Before the pandemic, serviced apartments were the fastest growing accommodation category in Austria with an 18% increase in bookings in Winter 2018 (source: Urlaub in Ferienwohnungen boomt https://tirol.orf.at/news/stories/2904521/)
  • Serviced apartments outperformed hotels during a pandemic thanks to well-spaced, self-contained apartments where tourists can arrive in their own car, have the flexibility to cook and avoid communal areas
  • Tirol is one the least densely populated areas in Europe with 59 people per square kilometre versus Germany 232, Netherlands 521, England (UK) 424, Belgium 376, Czech Republic 135
  • The Summer tourism business is growing fast even in high altitude resorts
  • Tourists are lowering their CO2 footprint and choosing closer destinations
  • For the apartment owner, there is capital growth in the mid-term
  • WFH: more families are spending time in the mountains and skiing when the weather is perfect and working back in the apartment when necessary
  • Lifestyle investment: owners can earn up to 4% per annum but also have healthy holidays with family and friends.

Please Contact us today to find out more about our inflation-proof property investments.

The Telegraph: “Why we should all be more Austrian about autumn”.

In the Tyrol, September is about embracing the last of the long days and drinking good wine

Autumn might be fast approaching, but that doesn’t mean it’s time to batten down the hatches and head indoors just yet – particularly not if you opt for a short break in Austria, where at this time of year everyone is up in the mountains hiking, mountain biking and, of course, foraging.

And there are myriad reasons to do just that. Austria does autumn colour extremely well (it’s not all pine forests in the Alps), and there are nuts, berries, herbs and, most prized of all at this time of year, mushrooms.

PDF 230919 Why Tyrol is the best Austrian state to visit this autumn

Tyrol in Austria is home to stunning natural landscapes that are well worth a visit, particularly in autumn CREDIT: Alamy Stock Photo

https://www.telegraph.co.uk/travel/destinations/europe/austria/why-tyrol-is-the-best-austrian-state-to-visit-this-autumn/

Easter site visits in Austrian Alps

Lots of snow will be falling in the Austrian Alps in the next 10 days so if you are skiing then why not get in contact to see some of our projects and completed apartments?

If you are a non-EU citizen then we can still help you to buy and get finance.  Here is a summary of our properties:

SKI-IN & OUT LOCATIONS

Kühtai: Austria’s highest ski village (2,020m). Prices start at 248,000EUR + 3% buyers’ fees for a studio apartment with stunning South-facing views. These apartments have been completed. Projected immediate return between 3.6% and 4.1%.

Kirchberg / Kitzbühel: ski-in is often possible within 150m of apartments. 2 top restaurants operated by Simon Taxacher, one of the best chefs in Austria. Prices from 329.000€.  Attractive return prospects: 3.7% to 4.9% (from the 3rd year of operation).

Hinterstoder: prices from €376.784. Non-EU nationals can buy as a natural person here.  Approximately 4% total capital return per annum rising to 7,5% over 20 years due to revenue based return model.

OTHER COMPLETED APARTMENTS

Galtür / Ischgl: 4 apartments left (two 2-bed and two 3-bed).  Average 4% return over 10 years.  Click for an example of a 3D tour

St Anton: 3 resale apartments from 799,000 with the option to handle the rental business yourself.

Ötztal: 1 apartment for resale for 559,000EUR (apartment and storage in basement) + 30,000EUR for 1 underground parking space Net. Buyer fees 3% of the gross sales price.

Off-market hotels: we have a growing portfolio of hotels which are for resale ranging in price from 1m to 20m. All enquiries are handled very discreetly.

COMING SOON

If you are interested in Seefeld / Leutasch and Berwang then contact us and we can share some information on apartments in these locations.

Helene Atterbury – Property Consultant +43 676 962 7712

info@kristall-spaces.com 

Austria – 10 reasons why

Thanks to the Austrian tourist board for this great blog on why skiers (and property buyers) choose Austria.

What really stands out for us and our buyers about Austria are the following:

State of the art infrastructure: everything works in Austria and there is a real sense of balancing tradition, nature and modernity.   We have the latest lifts, top of the range snow-making facilities and meticulous planning which you don’t always see in neighbouring countries.  This is achieved through careful debate in the current Regional government of Tirol which consists of a coalition between the conservatives (ÖVP) and The Green party.  Together, they are able to reach careful consensus and sign off new ski lift ventures like the future Oetz / Kühtai lift connection and the forthcoming link between Sölden’s glaciers and the Pitztal glacier to make the world’s largest glacier ski area.

Value for money: Austrian ski property prices are 28% below other alpine countries but price growth is higher at 8% (source: Savills).  Day-to-day living expenses e.g. lunch on the mountain and skiing are cheaper compared to France and Switzerland.

Nobody takes skiing more seriously than the Austrians: skiing is to an Austrian what football is to the rest of us. Third generation ski instructors will teach you to ski and guide you down routes they have skied all their life.  And did you know that 73% of Austrians speak English compared with only 39% of French?

Austrian Gemütlichkeit & après-ski: in many Austrian ski resorts, the local families have not been priced out by wild boom (and bust) property prices and so you can expect to be welcomed and looked after by locals in cosy surroundings where the beer and sing-along music starts in the afternoon. And because the average price of a beer in Austria is 4 Euros versus 8 Euros in France – it won’t break the bank.

Read further here https://www.austria.info/uk/things-to-do/skiing-and-winter/10-reasons-to-ski-in-austria

Kristall Spaces voted Winner in Best Residential Development in Austria

5 September 2018: Kristall Spaces is delighted to announce that All-Suite Resort Ötztal has just been voted Winner in category of Best Residential Development in Austria at the International Property Awards 2018/19.

More information will follow at the Awards Ceremony in London on 25 October 2018 at the Royal Lancaster Hotel https://propertyawards.net/

 

100cm of fresh snow in 48 hours

After one of the snowiest Januarys on record in the Alps with ski resorts in Tirol seeing 100cm of snow falling in just 48 hours, the outlook for February and the busiest skiing weeks of the year looks excellent.

Thanks to the snow storms of January which left road and rail access to St Anton, Ischgl and Kühtai cut off, there is a superb base in the ski resorts in Tirol.

The Lawinenwarndienst Tirol (Avalanche Warning Service for Tirol) cannot recall snowfall like this since 1999 and despite some blue skies in recent days, temperatures have dropped and there will be more wintry weather to come.

Current snow depth report in key Austrian resorts:

St Anton  140 / 415 cm
Hochoetz  40 / 220 cm
Fieberbrunn  100 / 200 cm
Sölden  20 / 325 cm
Ischgl  100 / 170 cm

Clearing snow in the Ötztal:

Bellevue Best Property Agents 2018

Kristall Spaces has been awarded the Bellevue magazine Best Property Agents 2018 seal of approval.  Only a select group of international real estate agents are awarded this title.

Branson Atterbury, Marketing Director at Kristall Spaces AG commented: “We had a compelling proposition for the Bellevue panel of judges.  We are the developer, agent and operator and thus provide a rare, end-to-end service: construction, marketing in German, Dutch and English, legal and financial advice to buyers and maintenance and a rental service on behalf of owners. Our key personnel are court sworn experts for the Bundesministerium für Justiz in planning, construction, engineering and property consultancy.”

It is this end-to-end proposition that allows us to understand all parts of the value chain and makes us even more effective at advising customers on acquiring their dream lifestyle investment.

Kristall Spaces AG has a current pipeline of developments worth in excess of €100m and an impressive portfolio of projects including:

  • All-Suite Resort Fieberbrunn (Skicircus Saalbach Hinterglemm Leogang / Kitzbühel Alps) All-Suite Resort Karwendel
  • All-Suite Residence Kühtai
  • Silva Peak Residences, Ischgl
  • All-Suite Resort Paznaun, Ischgl
  • All-Suite Resort Ötztal
  • Residenzen Gasthof Zwieselstein, Sölden
  • Mountain Spa Residences, St Anton
  • Mountain Lake Resort, Zell am See
  • Residenz Zwieselstein, Sölden
  • Residenz Sölden

Buying new build property in Austria

Austria is already the first choice for affordable ski properties, higher rental yields and authentic hospitality when compared to France and Switzerland but how does one decide on the type of property to buy: new-build or resale?

Here are some options to consider:

New-build or off-plan property in Austria normally comes with a higher price tag per m² and will further increase in value as soon as you take ownership.  Typically, we see a 4 to 5% annual growth on our ski apartments and this can be higher in some locations in Tirol thanks to scarcity restrictions to avoid the “cold beds” trends found in France and Switzerland.  According to the UBS Alpine Property Focus 2017, St Anton delivers best growth in the Alps at 8.2%.

So, you might have to increase your budget for a new-build but here’s a few reasons why it’s worthwhile.

New developments present an opportunity to buy into the project early increasing your chances of securing one of the best units at the lowest price and improving capital appreciation.  Note that developers can increase their prices year-on-year and as the project gains interest demand starts to rise.

Importantly, smart new build projects are carefully chosen by a developer for their location and access to ski lifts / pistes and restaurants and can command a rental premium over resale properties.

New property buyers aren’t in a chain and there is less reliance on the current owner / vendor which means less chance of the sale falling through.

Buying off-plan offers attractive payment schemes which don’t exist with resale properties: you pay for your apartment in stages.  The trustee will notify you in good time when each stage payment is due so you have time to prepare the transfer of funds – no need to transfer all at once.  This can be particularly advantageous when using a currency service.

There is also flexibility when dealing with the developer over factors such as parking spaces and choice of furniture packs and when there is joint ownership of the operating company for your apartments, it is possible for the developer to guarantee rental returns for a period during the operating agreement e.g. guaranteed 4% return on net purchase price for first 5 years.

When you buy off-plan in Austria, you get a certain amount of control over the interior of the apartment.  There is range of interior themes and styles to choose from and because you are dealing with the developer it is possible to make minor changes to the floor plans in the early stages of the project.

All new properties built in Austria use state-of-the-art, energy efficient methods and materials that you will simply not find in resale buildings.  Greener energy solutions, more efficient heating systems and some of the highest recycling standards in Europe not only reduce your carbon footprint but lower bills.

All Kristall Spaces’ developments use automatic central heating systems with air or water sourced heat pumps.  Energy is also captured from the spa and bathrooms areas to generate warmth in the underfloor heating systems via heat exchangers and our ventilation systems use the same heat recovery principles to pump fresh air into the apartments at the correct room temperature.  All this results in monthly heating cost savings for owners when compared to oil or gas and delivers a greener, more sustainable solution.

New properties in prime Austrian ski resort locations that come with a rental obligation when owners are not staying there themselves are exempt from VAT.  You can save a whopping 20% on the sales price when you opt for one of these apartments.

New properties come with building guarantees.  For example, we negotiate with tradesmen and suppliers for the following:

  • 10 years for the roof covering
  • 5 years for the mechanical systems (heating, electrics, lifts)
  • 5 years for the remaining works including the shell of the building
  • 2 years for electrical goods

Furthermore, Austrian Building Law allows for a 30-year Statute of Limitations for all hidden defects.

Please see our generic FAQ about buying and owning property in Austria or why not Contact us for advice on your Austrian property search.

Kristall Spaces Projects Update – Ski Properties in Tirol Winter 2017/18

Please click the links below for more information on each project.

St Anton – completion date December 2017.  Ready to occupy.  Over 70% sold out.  Award-winning ski-out apartments.   Some of the best views in the valley.  St Anton delivers best growth (8.2%) in UBS Alpine Property Focus 2017.

Kühtai – 2 apartments left. Ready to occupy now. Highest customer satisfaction in Kühtai on Booking.com: 9.6 Exceptional.  Ski in and out.  Highest ski apartments in Austria – 2,020 metres.  35 minutes from Innsbruck airport.

Ötztal – dual season resort. 100 metres to the ski lift. Full pricing and availability. 8% return on capital invested when taking out a 55% mortgage or a guaranteed 4% return on net purchase price for first 5 years.  25 minutes from Innsbruck airport.   Prices from 215.000€.  19 apartments sold.

Sölden – revised pricing post tendering.  Adjacent to family-run Gasthof Zwieselstein.   Guaranteed 4% return for the first 5 years.   Sölden and Obergurgl-Hochgurgl now offer a joint lift pass for 3+ days. 4 apartments left.

Fieberbrunn – 270km of pistes – will soon connect with Zell am See. Prices from 225.000€. Up to 8% return on capital invested when taking out a 55% mortgage or a guaranteed 4% return on net purchase price for first 5 years.  Some of the highest snowfall in Tirol.  Excellent off-piste skiing.  10 apartments reserved.

Ischgl – prices start at 5,000EUR per sq metre.  Full pricing available in April 2018.  Contact us today for a preview of the plans.  Already taking unbinding reservations.

Karwendel – pricing available in April 2018.  Contact us today for plans.  No rental obligation.  One of the most beautiful places you will ever visit.

Kristall Spaces develops and sells ski property in Tirol and now we manage and rent apartments on behalf our owners through our operator business, All-Suite Resorts.