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.

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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.

17 January: update on Kristall Spaces projects

The Austrian Alps are nicely covered with snow and as much 229cm in Sölden.  We at Kristall Spaces are busy handling dozens of enquiries each day and managing site visits for prospective EU and non EU based buyers.

We have 4 key projects with pricing & availability

St Anton apartment for sale – construction is underway and one of the buildings containing half the apartments has all the floors in place and the roof on.  It is possible to enter the building with one of our representatives and get a feel for the floor spaces and different views.  Of the 28 upper luxury apartments in this project, 14 are still available.  Voted Best Apartment in Austria & Europe.

Kühtai 2020 Residences – construction was completed last month. There are 5 apartments (out of 17) left but we expect them to sell in the next few months.  There are quite a few buyers who have reserved or are about to reserve in this development, the highest in Austria.  Come and look round one these fully furnished luxury apartments which are ready to occupy now.

Sölden – we will start construction after this ski season. 3 of the 8 apartments have been sold or reserved and there is good interest for the last 5.  It is easy to set up appointments in the Gasthof Zwieselstein where you can meet the developer and the Gstrein family who will manage the rental business of your apartment.

Mountain Lake Resort Ötztal – we have just finalised floor plans and pricing for this exciting dual season location. 100 metres from the ski lift and in a prime location to make the most of the Ötztal’s strong summer season facilities.  State of the art spa and choice of swimming pools for summer. Restaurant and bar on-site.  We already have 7 reservations!

Coming soon – new projects

We will soon release floor plans for Galtür (Ischgl) and Fieberbrunn, so keep your powder dry if you want your own apartment in one of these locations!

Galtür (Ischgl) – floor plans for Mountain Spa Resort Paznaun coming in February 2017.  We will update all our prospects with a newsletter.

Fieberbrunn – floor plans coming in February 2017 also.  Again, all our previous enquiring customers will receive a newsletter.

Karwendel – 28 leisure residences with no rental obligation although we provide a rental service if owners would like to rent their apartments.  Swimming lake & on-site wellness.  On-site brasserie restaurant & bar. 1 hour from Munich & 40 minutes from Mittenwald.

Register your interest 

Contact us today if you are interested in any of these locations and we will keep you updated with progress.

Austria shines in Savills report on Alpine properties

There are some useful data in this year’s Savills report on Alpine properties – here are the out-takes for buyers considering property in Austria.

Austrian ski property prices are 28% below other alpine countries but price growth is higher at 8%.  See the chart below.

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With ongoing infrastructure investment and growing international skier participation there is room for upward price movement in Austria.  Other sources (e.g. Tiroler Tagezeitung) recently highlighted a record first half in 2016 of apartment sales in Tirol with an average capital growth of 6.2% for the region.

Reassuring feedback then from separate sources on increasing asset values which will be sustained by careful town planning restrictions on over-development and therefore supply.

Austria is clearly more successful than France and Switzerland in developing its non-skiing attractions and summer tourism business which drives up rental yields, infrastructure investment and future resale values for Austrian property owners.

The report points to a 1.6% year-on-year decline in total ski visits to the top 8 global markets is reported (USA, France, Austria, Japan, Italy, Switzerland, Canada and Germany).

Austrian property investors need to be careful and review local tourism figures in isolation.

The Tirol region has delivered a >10% increase in visits in the first 6 months of 2016 clearly bucking the trend of competitor ski markets.

Innsbruck airport is increasing its inbound capacity for German passengers by 180% this year and introducing new routes from British Airways.  The Tirol Tourism board and the ski resorts are again forecasting a year-on-year growth in visitor numbers.

One successful strategy paying off for the Austrians is their focus on the millennial generation (age 20 to 35).  The successful Alpine resorts of the future will be the ones which innovate and draw new visitors with different activities throughout the year.

Examples include Kühtai which boasts Austria’s biggest half pipe and nearby Area 47, one of Europe’s largest extreme sport adventure parks which even has a wakeboard park at 812m above sea level and Mediterranean water temperatures to boot:

Ischgl is one of the biggest ski areas with the longest season continually ploughs lift profits back into its dizzying array of slick infrastructure and glitzy / urban amenities, including 3 Michelin star restaurants.  In Ischgl you can even ‘fly home’ down the valley with or without skis at 85kmh on a dual zip wire – 2km long and 50m high (total investment €2m):

Incredibly, family-friendly Oetz has just reported a 30% increase in lift sales this summer thanks to new investment in family amenities in the Hochoetz ski area.   Astonishingly, Oetz draws 45% of its annual visitors outside the winter season.  Oetz has 80km of its own skiing and tourists can access Sölden in 20 minutes with its 2 glaciers but it has all-year round tourism status – not just in the Summer but through to early Autumn when the Acherkogelbahn makes a brief pause before the Winter season starts again on 16 December.

Hochoetz’s new adventure playground, Widiversum – parents can even leave children in supervised groups and head higher into the mountains for the day:

Currency impact:

In the wake of the UK’s EU referendum and the weakening of sterling, Swiss Alpine property has become 8.6% more costly to GBP buyers (May to Sep 2016), while French or Austrian Alpine homes have become 7.6% more expensive.  Despite the Pound’s fall, there are still some determined UK buyers who want to buy their Austrian property now and get into Austrian Land Registry before Brexit is finalised.

For US Dollar, Euro and Swiss Franc buyers, the picture is unchanged and the customer base is very international including non EU buyers as well as increasing numbers of Germans, Dutch, Belgian and Scandinavians.

Please read our FAQ about buying and owning an Austrian property or Contact us today with any questions.

Stanford University: hiking improves your mental state

Even without the snow, the Austrian Alps draw visitors from all over the world to hike through its stunning, majestic scenery.  The dual season of Oetz, for example, receives nearly as many tourists in summer as winter with the Acherkogelbahn starting up on 4 June and running through 9 October to whisk walkers up to 2,020m in just 8 minutes as a starting base to a choice of high alpine walks.

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We all know hiking is great exercise which provides plenty of physical benefits, but recent studies have suggested it can have positive mental effects, ranging from improving mental health to enhancing creative thinking.

Hiking to Improve Mental Health

A recent experiment at Stanford University has provided evidence that walking through natural surroundings produces a measurable reduction of “morbid rumination” — brooding to you and me. Gregory Bratman of School of Earth, Energy & Environmental Sciences divided his volunteers into two groups, one of which was sent on a for 90-minute walk through countryside, the other for the same distance through an urban area.

While it’s not surprising that the first group felt more relaxed, questionnaires before and after the walk also showed that they saw a reduction in their morbid rumination, a state which, in more extreme forms, can lead to mental illness.  The second group showed no reduction, even though they’d walked the same distance.

Bratman went further, though, and examined changes in a part of the brain called the subgenual prefrontal cortex, which is known to control brooding. The volunteers who’d enjoyed the countryside walk had lower activity here after they’d finished, supporting the results of the questionnaire.

Other Mental Benefits of Hiking

Another study, this time by the University of British Columbia, demonstrated that aerobic exercise, such as hiking, increased the capacity of the hippocampus (the part of the brain that is involved in memory forming, organising, and storing). This improves memory, both in the short term and by slowing down the loss of our memory power as we age.

At the other end of the life-span, a study by Frances E. Kup and Andrea Faber Taylor has shown that children with Attention Deficit Hyperactivity Disorder (ADHD) benefit from exposure to “green outdoor activities”. Their ability to concentrate improves, suggesting that this might also help anyone with attention problems.

A study by Ruth Ann Atchley and David L. Strayer suggested that hiking through a natural environment also improves mental creativity. Volunteers who spent several days hiking in the countryside with no technology to distract them scored higher in creative exercises on their return than before they started.

All-Round Benefits

There’s still plenty more work to be done on these studies, such as determining the relative importance of the walking itself and the surroundings, as well as whether it enhances the effects or detracts to have company.

It seems clear, though, that hiking through beautiful scenery is good for us both physically and mentally. And you don’t find hiking more exhilarating nor scenery more sensational than Tirol.

Check out the following websites for hiking inspiration in Oetz and Galtür.

oetz summer walk

There’s something about the combination of the mind-blowing landscape and the good humour and generosity of the Tiroleans that’s irresistible to walkers, from beginners to tough mountain-hurdlers.