Where luxury properties are at home: The most sought-after locations in Austria

The Kitzbühel region and the city of Innsbruck have the highest price levels in Austria

The highest property prices in the country are traditionally achieved in the Kitzbühel region. "The exceptional chalets with mountain panoramas here are among the most exclusive in the country. The price range for villas and chalets in prime locations starts at EUR 5 million and can reach up to EUR 35 million for exceptional properties. The top price in 2020 was just under EUR 20 million. This puts us in the same league as Swiss luxury ski resorts such as Davos, St. Moritz or Zermatt," says Florian Hofer, Managing Director of Engel & Völkers Alpine Region Tyrol & Salzburger Land.

Even exclusive condominiums in good and very good locations here generally cost more than 15,000 EUR/m². These high prices are mainly achieved in the municipality of Kitzbühel itself and in neighbouring municipalities such as Reith, Aurach, Jochberg and Kirchberg. The average price for condominiums in the district of Kitzbühel was EUR 6,270/m² in 2020, an increase of 45 per cent since 2016. This is the highest value of all districts in Austria, apart from Vienna's 1st district. The fact that the value in Kitzbühel even rose by 19 per cent compared to the previous year is evidence of the enormous demand.

In terms of house prices, the city of Innsbruck is also at a particularly high level - the highest of all major cities in Austria. Innsbruck is extremely popular as a place to live and therefore also has the highest average flat and house prices of all major Austrian cities. The average sales price of a condominium flat was EUR 5,940/m², and EUR 1,058,000 for detached and semi-detached houses. While a detached house in Innsbruck achieved a top price of EUR 5 million, the top price for a condominium was EUR 10,851/m².

Salzburg records strong market growth and a growing premium segment with price increases at a high level

In the popular cultural city of Salzburg, the average price for a detached house in 2020 was EUR 915,000, making it the second-highest priced city in Austria after Innsbruck. In the condominium segment, the province of Salzburg is in third place in the national comparison of average prices. The city of Salzburg also stands out here, followed by the districts in which exclusive holiday flats raise the price level, such as the Salzkammergut, Zell am See and Hallein.

While the range of activities on offer in the city and region of Salzburg is huge, the supply of residential property is rather scarce, which means that the price level remains high, especially for luxury houses in prime or panoramic locations. This is also made clear by the 14.9 per cent price increases for detached and semi-detached houses in 2020 compared to the previous year. "Top prices of up to just over EUR 20,000/m² are being paid for flats. in 2020, the top price of EUR 9.5 million was even achieved for an exceptional property. in 2020, a total of 146 homes were sold in Salzburg City at an average price of EUR 914,200," says Mark Hüsges, Managing Director of Engel & Völkers Salzburg. The price increase for condominiums to an average of EUR 5,230/m² in the city of Salzburg and EUR 4,300/m² in the surrounding area, combined with the central location and proximity to Munich, also make the region one of the most interesting in Austria with growing interest from international buyers.

Increasing demand for high-quality property in Vienna

Since 2016, prices for flats in Vienna by around 22.5 per cent, which means Vienna defends its top position in terms of average prices among the federal states. The centre, the 1st district, and the 3rd to 9th districts have recently seen the sharpest rise in flat prices, although prices here have already reached a very high level. Vienna also holds the top position among the federal states in the detached and semi-detached house segment. in 2020, properties were sold for just under 700,000 euros on average - one property in Döbling even achieved a top price of 30 million euros. At EUR 697,000, the average sales price of detached and semi-detached houses in 2020 was below the previous year's level of EUR 723,000, although the trend is rising again. There is also an upward trend in prices for condominiums. The average sales price in 2020 was EUR 5,190/m², and an increase to EUR 5,400/m² is expected in 2021.

Vorarlberg has the second-highest price level in the country for houses and condominiums

In vorarlberg is experiencing high demand, particularly in the segment of single-family houses and new-build flats. The average purchase price for detached and semi-detached houses has risen by over 50% since 2016 and, at just over EUR 600,000, is the second highest in Austria after Vienna. The increase was particularly marked in Dornbirn (+68%), now the most expensive district in Vorarlberg. A peak price of just under EUR 20 million was achieved here in 2019. In addition, building land is scarce in the province, further limiting supply. The most popular plots and flats with lake views rarely come onto the market. The price level for condominiums is also the second highest in Austria. an average of EUR 4,570/m² was paid in 2020. Due to the coronavirus pandemic, safe investments are in high demand, which is why flats in Vorarlberg are increasingly being purchased as investments.

Exclusive properties on Carinthia's Wörthersee remain in high demand

"Carinthia's Lake Wörthersee is inextricably linked with high-quality property. Although lake properties are more in demand than ever before, both properties and land in the district of Klagenfurt Land in good to very good locations are in short supply and property prices are high. At 5,000 EUR/m², the average price for flats in the district of Klagenfurt-Land, but also around the other larger lakes, especially in the Carinthian central region, is far above the rest of Carinthia," says Hansjörg Lenz, Managing Director of Engel & Völkers Carinthia.

One top property was even sold at a top price of over 18,000 EUR/m². The average sales price has therefore risen by 44 per cent since 2016. A top price of EUR 14 million was achieved for a detached house on Lake Wörthersee in 2020. Such top properties must be located directly on Lake Wörthersee or have generous access to the lake. The coronavirus pandemic has once again significantly increased demand for high-quality properties in the region, as people prefer to spend their holidays by the lake in a holiday home, holiday flat or their own second home rather than in a hotel.

Districts of Baden, Tulln and Mödling record highest prices in Lower Austria

In the districts of Baden, Tulln, Mödling and Korneuburg, the strong excess demand is causing the highest price levels by far in Lower Austria. In the district of Tulln, where the town of Klosterneuburg is also located, prices for detached and semi-detached houses have risen by an average of 44 per cent since 2016. "Mödling has the highest price level in the area surrounding Vienna. With a sales price of EUR 6.1 million, the highest price by far for a detached house in the province was achieved here," explains Oskar Beirer, Managing Director of Engel & Völkers Baden near Vienna. The average sales price of detached and semi-detached houses here in 2020 was EUR 657,000. The average sales price of condominiums also rose from EUR 3,958/m² in 2019 to EUR 4,398/m² in 2020. There has been an increase in demand, particularly for top properties with gardens or large open spaces and high-quality fixtures and fittings.

Strong demand for luxury holiday properties in the Schladming-Dachstein region

In the Schladming-Dachstein region of Styria, demand for holiday and investment properties in the luxury segment is growing particularly strongly. However, supply is extremely scarce. Prices of up to around two million euros are therefore being realised for properties in prime locations. Especially in good and very good locations, prices could rise even further due to the excess demand. In the beautiful mountain world, there are generally only a few properties in medium and basic locations. "Schladming-Dachstein is one of the largest tourism regions in Styria. The region boasts a long tradition of mountaineering and skiing. Locals and tourists alike enjoy the impressive mountain landscape as well as the cultural and wellness offerings. Holiday properties in particular are in demand in this region: demand already exceeds supply," says Harald Martich, Managing Director of Engel & Völkers Graz.

Rising demand for exclusive penthouses and villas in Upper Austria

In the stimulating cities of Linz, Wels and Steyr, demand for high-quality living space is particularly high in central locations. With an increase of over 30 per cent since 2016, Linz and Wels are even among the cities with the strongest price growth nationwide. Premium flats such as penthouses are just as much in demand as villas in prime locations. "The luxury segment is particularly pronounced around the lakes of the Salzkammergut. The districts of Gmunden and Vöcklabruck here have the highest price levels in Upper Austria with average flat prices of over EUR 3,600/m². In good and very good locations, house prices in the Salzkammergut are often well over one million euros. For dream properties directly on the lake, the price range is wide open at the top," explains Diether Raffelsberger, Managing Director of Engel & Völkers Upper Austria.