Current property market trends in the city of Salzburg and the Salzkammergut region

The Engel & Völkers Market Report 2024 for residential properties in Salzburg and the Salzkammergut illustrates that the Salzburg property market has proven to be extraordinarily resilient despite the challenging situation on the global property markets and continues to offer high potential for value appreciation. ‘The stable economy, high quality of life, strong tourist appeal and sustainable development make the region an extremely desirable location,’ emphasises Alexander Heim, Managing Director of Engel & Völkers Salzburg.

Price increases in city centre locations and in the Salzburg region

The average price per square metre for condominiums in the city of Salzburg was EUR 5,700 in Q2 2024, which corresponds to a slight price decline compared to the previous year at EUR 6,002. ‘In addition to tourism, Salzburg is an attractive place to live and attracts people looking for flats in the city centre as well as in the surrounding area. Prices therefore remain at a high level,’ says Heim. There was also a decline in prices in the segment of detached and semi-detached houses and villas in the second quarter of 2024, with purchase prices averaging EUR 1,050,000 compared to EUR 1,407,000 in Q2 2023.

A closer look reveals significant price differences depending on the location. ‘The demand for premium properties remains unbroken throughout the state. This is also reflected in the purchase prices,’ explains Heim. For detached and semi-detached houses, the maximum price in very good locations has been revised upwards slightly from a maximum of EUR 17 million in 2023 to a maximum of EUR 17.5 million in 2024. In simple locations, a slight decline in prices from a maximum of EUR 1.2 million (2023) to a maximum of EUR 1.1 million in 2024 is discernible, while a stable to slightly declining price trend is expected for condominiums in almost all locations in the current year. In very good locations, such as the old town, Parsch or Riedenburg, up to EUR 20,500/m² will be possible this year (2023 up to EUR 22,000/m²), in simple locations, such as Elisabeth-Vorstadt, up to EUR 5,100/m² (2023 up to EUR 5,200/m²).

Development of the Salzburg transaction volume and number in 2024

Since the beginning of the year, the Salzburg residential property market has seen a significant increase in transaction volume. In the condominium segment, the Engel & Völkers team expects a significantly higher transaction volume of EUR 290 to 360 million for the city of Salzburg, compared to a transaction volume of EUR 304 million in the previous year. A transaction volume of EUR 155 to 190 million is also expected in the detached and semi-detached house segment this year. This represents a remarkable increase compared to the previous year (transaction volume of EUR 162 million). According to forecasts, the number of transactions for detached and semi-detached houses will increase from 124 (2023) to 130 to 150 in 2024, while the market for condominiums is also expected to increase from 795 (2023) to 780 to 910.

Rising rents in the city of Mozart

Known worldwide for its baroque architecture, historic old town and as the birthplace of Mozart, the city of Salzburg has been a sought-after place to live for years, which has led to a continuous rise in demand for housing and rental prices. Flats of around 60 m² in size in particular have experienced a significant price increase: While people paid an average of EUR 15.48/m² in 2023, the price in 2024 is already EUR 17.35/m². The rental price trend in the 100 m² flat segment is comparatively moderate. Here, the average price per square metre rose from EUR 14.10 in 2023 to EUR 14.24 in 2024. Apartments in good locations and in good condition fetch over EUR 20,000/m².

Lakeside locations in the Salzkammergut achieve top prices

The residential property market in the Salzkammergut is characterised by high demand and limited supply. Property prices have risen significantly up to 2022, particularly in places that are attractive to tourists such as Hallstatt, Bad Ischl and St. Wolfgang. ‘In the detached and semi-detached house segment, prices will continue to rise in very good locations in 2024. The price range here is from EUR 2 million to EUR 8 million. We also expect prices in good locations to rise year on year, with prices ranging from EUR 1.3 million to EUR 4.8 million in 2024,’ explains Mark Hüsges, Managing Director of Engel & Völkers Salzburg. Prices in medium and basic locations remain stable. With 445 properties sold, the transaction figures almost matched the previous year's level.

The Salzkammergut region attracts both local buyers and international investors who appreciate the exceptional quality of life and diverse leisure opportunities. ‘The average price per square metre for condominiums fell only slightly to EUR 4,809 in 2023, which corresponds to a decline of 2.5% compared to the previous year and keeps the price well above the 2021 level,’ explains Hüsges. Slight price increases for condominiums in very good and good locations are expected again in 2024. Specifically, the forecasts point to a slight price increase in very good locations from EUR 8,000/m² to EUR 16,000/m² in 2023 to EUR 8,500/m² to EUR 16,500/m² in 2024, while prices in medium locations are expected to remain stable to moderate at between EUR 4,000/m² and EUR 6,500/m².

Dream properties on the region's 76 lakes and panoramic locations in the mountains remain in particularly high demand. ‘Absolute prices of over EUR 10 million can therefore still be achieved for exceptional properties and prices per square metre of up to EUR 20,000 for premium flats,’ says Mark Hüsges. After transaction figures have fallen in recent years, the experts at Engel & Völkers Salzburg expect the market to pick up in the second half of 2024.