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 

New rules for Winter 2021/22: Ski lifts and Après-ski

22 September: new rules have been announced by Austrian Tourism Minister Elizabeth Köstinger.   

In summary, there will be very few restrictions for skiers who have been vaccinated. 

  • The 3G Rule applies refers to ‘Getestet, Geimpft, Genesen’ (Tested, Vaccinated, Recovered)
  • You must show evidence of vaccination, a negative test or having recovered from the virus in the last 6 months (applies for everyone over 12 years)
  • Antigen tests from an Apotheke are valid for 48 hours
  • PCR tests are valid for 72 hours
  • The EU Green Pass will make it easy to prove your status (NHS app for UK citizens)
  • FFP2 masks must be worn on ski lifts
  • 85% of lifts are open (chair lifts) with a lower risk of infection and a journey time of less than 15 minutes
  • The same rules apply to après-ski as to restaurants: guests must show a valid negative PCR test result, proof of vaccination or proof of recovery
  • If the ICU capacity in Tirol becomes limited then stricter measures will be needed (after 300 and 400 ICU beds are in use – currently at 60).

Glacier skiing in Sölden is already in full swing!

© Ötztal Tourismus/Bergbahnen Sölden

Fieberbrunn tourism and investment on the rise

Encouraging news from the Fieberbrunn tourism office regarding visitor numbers this summer: up 7.3% so far this year thus outperforming the average rise of 5% across the whole Tirol region.  Good to remember that the winter season here posted an 8% increase in visitors too.

The summer season in Fieberbrunn is already well developed with 47% of all annual visits taking place outside the winter season and the tourist office has great plans to develop this business further in conjunction with Kitzbühel and Saalbach.

It’s thanks to these dual season visitor numbers that the All-Suite Resort Fieberbrunn will be able to deliver 180 days occupancy per annum which is 15% higher than the officially published average for Tirol being 156 days.

The Fieberbrunn lifts run right up 28 October with a break in November giving the lift company one month to prepare the winter opening on 1 December, a week earlier than previous seasons thanks to a 7 million Euro investment this summer to the snowmaking on the Streuböden ski area.  The Streuböden lake has been extended to capture more melt water and new high-capacity pumps and additional snow cannons will be able to recycle the water and cover the entire ski area in just 7 days in preparation for the opening of the winter season and busy Christmas and New Year holidays!

More welcome news is the forthcoming 15 million Euro investment in the Buchensteinwand ski area, famous for its iconic Jakobskreuz.  The Buchensteinwand ski area can be accessed from Hochfilzen and currently has 8 lifts, 22 km of runs and one of the biggest children’s ski areas in Tirol, the Bobo-Kinderpark.  The renowned Pletzer group will be developing the snowmaking systems and lifts and creating extra facilities to cater for winter and summer visitors.

Austria’s biggest skiable area: very soon, Fieberbrunn will also connect with Zell am See via Saalbach Hinterglemm and Viehofen creating 347km of interlinked skiing and overtaking the Arlberg as Austria’s biggest ski area.  The concrete foundations for the lift have already been laid and it’s anticipated the connecting lift will be installed in the coming year.

Key facts about All-Suite Resort Fieberbrunn:

  • 36 luxury freehold apartments: 1, 2, 3 and 4-bedroom with large balconies
  • Fully furnished with a choice of interior designs
  • Onsite bar / restaurant & spa (sauna, steam room), underground parking
  • 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
  • 1 double bedroom apartment from € 225,000 Net Sales Price excl. parking
  • Snow-sure: highest snowfall in the whole of Tirol for the last 40 years
  • Thanks to its backcountry skiing, Fieberbrunn is a mecca for serious powder skiers and for this reason it is on the Freeride World Tour with the likes of Chamonix and Verbier
  • Completion date of Winter season 2019

All-Suite Resort Fieberbrunn apartments: this type of accommodation (commercially rented apartments) are the fastest growing category of accommodation in Austria – up a colossal 18% according to ORF http://tirol.orf.at/news/stories/2904521/

So, you can be reassured that you are buying into a well-thought-out business model.

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.

Your Chance to Invest in Premium Austrian Ski Property

The Austrian authorities are careful about granting permits to build ski property in their top resorts, and demand is high when there is an opportunity. But Kristall Spaces has achieved a rare coup by obtaining permits to build in several resorts, including Saalbach, Galtür/Ischgl and Kühtai.

New luxury apartments

These two and three bedroom luxury apartments are brand-new builds, and Kristall Spaces is offering them as excellent chances for investment, since the scarcity caused by planning restrictions ensures that capital growth is high. Our new units are always heavily subscribed even before we start building, and it’s unheard of for any to remain to be sold by the time the project is complete. There are few better investments — with the current exchange rate, even holding sterling is less attractive to UK investors.

Top properties in top Austrian resorts

The resorts earmarked for the new developments are among the most attractive in Austria, chosen for guaranteed long winter sports seasons, together with wonderful golf courses and great opportunities for walking and alpine sports in summer. We offer properties that are central with private parking, and many with ski-in, ski-out locations.

  • Kühtai — only 35 minutes from Innsbruck airport, we offer ski-in, ski-out apartments in this beautiful, high-altitude resort.
  • Galtür — quite apart from the family-friendly skiing in a beautiful, tranquil setting, it’s only 10 minutes on a free bus to the more glamorous Ischgl, from where you can ski over the border into Switzerland.
  • Saalbach — just an hour from Salzburg airport, our properties in Saalbach offer ski-in, ski-out in winter and excellent golf courses in summer, guaranteeing a 5-year rental return of 5%.

A great investment

Our properties in these resorts are built, designed and furnished to exacting standards, each with at least two bedrooms, a large bathroom and a balcony. Kristall Spaces makes all the arrangements through the best tour operators for year-round rental, and the facilities on offer ensure the apartments will be in high demand both summer and winter. And, as if the opportunities weren’t enough, you can even claim a VAT rebate on your property.

Kristall Spaces will soon be announcing new projects in other Austrian resorts. For now, though, you can check out more about our apartments, priced from €280,000 to €334,500, in Kühtai, Galtür/Ischgl and Saalbach.

The Top 5 Places to Eat in Saalbach Austria

It’s the slopes that make or break a skiing holiday, but you’re not going to be skiing all the time. A ski resort needs a range of other facilities, not least great places to eat.

The Saalbach-Hinterglemm has over fifty restaurants of various kinds. Most are excellent, but which are rated the best five in and around Saalbach?

Westernstadl Altachof

Westernstadl AltachofOn the mountain just out of Saalbach to the west, the Westernstadl Altachof is a country and western themed restaurant, but done with a style and humour that saves it from being tacky. The menu, mainly Austrian cuisine, is varied and well cooked, and the waitresses combine efficiency with charm and humour. The tables are well enough spaced to keep noise at a reasonable level, and an added bonus is that you can watch the horses in an adjoining stable while you eat.

Maisalm

MaisalmOn the mountain to the north of resort, the Maisalm has outdoor seating with warm sheepskin covers on the chairs, allowing you to enjoy the stunning vista of the surrounding mountains and valley. Offering a mixture of Austrian and Italian food, it has everything from cheese and cold cuts to pizza, strudels to stockpot, all served quickly by friendly staff in traditional dress. They also serve a local beer that’s highly recommended.

Panorama Alm

As its name suggests, this is up on the slopes with beautiful views out over the valley. The Panorama Alm is run by a local couple with an emphasis on being family friendly, and it offers a children’s play area and a garden containing a small lake, as well as a museum of local farming tools. You can sit out on a terrace to take advantage of the view, and both the food — Austrian cuisine — and the service are excellent.

Panorama Alm Saalbach

Schattberg Stube

Located at the top of the Schattberg lift, this is a cut above many lift-top restaurants. Offering table service, self-service and a bar area, its mainly Austrian food is excellent, and the restaurant gives all-round views of the Alpine scenery. Both service and value for money are good, whether you have a full meal, a snack or just a drink. Being easily accessible from the village, though, it’s very popular, so you need to arrive reasonably early for a table in the evening.

Schattberg Stube

La Trattoria

Austrian food is excellent, but if you feel the need for a change, La Trattoria is a great Italian restaurant in Saalbach village. It offer a wide range of Italian dishes, from pasta to steaks to pizza, as well as Italian wine. The service is fast and unflapped, and the restaurant has a friendly atmosphere. It’s often crowded in the evening, so it may be advisable to book in advance.

La Trattoria saalbach