Current developments on the real estate market in Tyrol

The Engel & Völkers Market Report 2024 for residential properties in the Alpine region of Tyrol and Zell am See shows that the Tyrolean market for residential properties has increasingly stabilised despite significant declines in demand and prices in the previous year. ‘A look at the year 2024 shows an increase in transactions. Slowly falling lending rates and isolated price corrections are making themselves felt. Top properties with good facilities in very good locations are still in demand. Top regions such as Kitzbühel remain a safe haven for buyers,’ explains Florian Hofer, Managing Director of Engel & Völkers Alpenregion Tirol & Zell am See.

Innsbruck: Demand unabated despite limited availability

The comparatively high-priced residential property market in the provincial capital of Innsbruck fell last year, especially for detached houses, while the flat market remained stable. The average sales price in the detached and semi-detached house segment was EUR 720,000 in the first half of 2024, which shows a significant downward price correction compared to 2023 at EUR 967,000. The average price per square metre for condominiums was EUR 6,700 in Q2 2024, which also corresponds to a slight year-on-year price decline to EUR 6,869.

‘Innsbruck currently offers a rare opportunity to acquire high-quality properties in prime locations,’ explains Florian Höll, Engel & Völkers Office Manager Innsbruck and Seefeld. The top price for detached and semi-detached houses in very good locations, such as the city centre and Igls, has risen to a maximum of EUR 2.1 million, while the top price in basic locations has remained unchanged year-on-year at EUR 700,000. In Innsbruck's owner-occupied flat segment, purchase prices also remained stable in all districts at a maximum of EUR 9,000/m² in very good locations and EUR 6,600/m² in medium locations such as Amras.

The Innsbruck property market has also seen a significant increase in transaction volumes since the beginning of the year. For condominiums, the Engel & Völkers team expects a significantly higher transaction volume of EUR 250 million to EUR 330 million this year compared to the previous year (2023: EUR 255 million). A transaction volume of EUR 21 million to EUR 35 million is also expected in the detached and semi-detached house segment in 2024 (2023: EUR 21 million). According to the forecasts, the number of transactions for detached and semi-detached houses will increase from 25 (2023) to between 28 and 37 in 2024, while the market for condominiums is also expected to increase from 658 (2023) to between 720 and 850.

Rental prices in Innsbruck have declined in some cases over the past year. While an average of EUR 15.99/m² was paid for a 60 m² flat in 2023, the price in 2024 was only EUR 14.09/m². On the other hand, there was a slight increase in rents in the 100 m² flat segment. Here, the average price per square metre rose from EUR 15.15/m² in 2023 to EUR 15.40/m² in 2024.

Zillertal and Achensee remain popular holiday destinations and sought-after residential areas

The residential property market in the Achensee-Zillertal region is characterised by high demand and correspondingly high prices. After strong price increases in 2022, the average price for condominiums in the Schwaz district fell only slightly by 3.2 % to EUR 4,785/m² in 2023. The average sales price for detached and semi-detached houses even rose to around EUR 702,000 due to some high-priced sales. ‘The region will remain popular in the future. Demand on the housing market is therefore likely to continue to increase in 2024,’ predicts Höll.

Average price for flats in Kitzbühel rises to over EUR 10,000/m²

Property prices in Kitzbühel are the highest in Austria and comparable to those in other international luxury destinations. Properties in and around the town of Kitzbühel and in neighbouring villages such as Kirchberg, Jochberg and Reith in particular continue to achieve top prices. The average sales price in the district of Kitzbühel in 2023 was just over EUR 2.2 million, slightly below the two previous years. In contrast, the average price per square metre for condominiums rose by 15.1% year-on-year in 2023, reaching over EUR 10,000/m² for the first time. This underlines the consistently high demand in the premium segment. Properties with alpine charm and high-quality furnishings as well as direct access to the ski slopes or unique mountain views are particularly in demand. For the current year, for example, prices of up to EUR 30 million are possible for new-build chalets in the luxury segment in very good locations, which corresponds to a significant price increase in this segment. For mid-range locations, maximum prices of EUR 5 million are expected, which represents a slight price decline compared to the previous year (max. EUR 6 million).

‘Despite the extended marketing period, Kitzbühel will maintain its position as a top region in Tyrol. The premium and luxury segment will remain an important market and properties in top locations will continue to achieve top prices in the future,’ emphasises Maria Rauscher, Managing Director of Engel & Völkers Alpenregion Tirol and Zell am See.

Zillertal and Achensee remain popular vacation destinations and sought-after residential areas

The residential property market in the Achensee-Zillertal region is characterized by high demand and correspondingly high prices. After strong price increases in 2022, the average price for condominiums in the Schwaz district fell only slightly by 3.2 % to EUR 4,785/m² in 2023. The average sales price for detached and semi-detached houses even rose to around EUR 702,000 due to some high-priced sales. “The region will remain popular in the future. Demand on the housing market is therefore likely to continue to increase in 2024,” predicts Höll.

Average price for Kitzbühel apartments rises to over EUR 10,000/m²

Property prices in Kitzbühel are the highest in Austria and comparable to those in other international luxury destinations. Properties in and around the town of Kitzbühel in particular, as well as in neighboring villages such as Kirchberg, Jochberg and Reith, continue to achieve top prices. The average sales price in the district of Kitzbühel in 2023 was just over EUR 2.2 million, slightly below the two previous years. In contrast, the average price per square meter for condominiums rose by 15.1% year-on-year in 2023, reaching over EUR 10,000/m² for the first time. This underlines the consistently high demand in the premium segment. Properties with alpine charm and high-quality furnishings as well as direct access to the ski slopes or unique mountain views are particularly in demand. For the current year, for example, prices of up to EUR 30 million are possible for new-build chalets in the luxury segment in very good locations, which corresponds to a significant price increase in this segment. For mid-range locations, maximum prices of EUR 5 million are expected, which indicates a slight price decline compared to the previous year (max. EUR 6 million).

“Despite the extended marketing period, Kitzbühel will maintain its position as a top region in Tyrol. The premium and luxury segment will remain an important market and properties in top locations will continue to achieve top prices in the future,” emphasizes Maria Rauscher, Managing Director of Engel & Völkers Alpenregion Tirol and Zell am See.