Property prices in Innsbruck: Everything you need to know about purchase and rental prices in the Tyrolean capital

As a place to live, the Alpine region is more popular than ever before. This is particularly the case for the province of Tyrol and its charming capital Innsbruck. Its excellent location amidst the Alpine mountain landscape and the excellent road, rail and air connections are just some of the many solid arguments for an investment in Tyrol. 

This attractive business location and cultural hotspot is a magnet for a rising number of investors and owner-occupiers. Due to the high level of demand on the property market in Innsbruck, buyers are faced with correspondingly high prices. When it comes to purchase prices, Innsbruck takes the top spot Austria-wide at present, ahead of Salzburg and Vienna. Over the past few years, prices have increased dramatically. However, the Tyrolean capital is still more favourably priced than many Swiss cities and the practically neighbouring city of Munich. There is additional cause for optimism: in order to serve the high level of demand, an array of interesting new-build projects have been initiated in Innsbruck. Buying properties in Tyrol is still worthwhile. 

Here, we provide you with information about the purchase prices for flats and houses in Innsbruck as well as the current situation on the property market and future developments. 

Property prices in Innsbruck: Current developments & trends on the property market

The province of Tyrol in the west of Austria isn’t just popular amongst tourists from all over the world. The municipal statistics in Tyrol show continuous population growth over the past few years. With many successful companies and the lowest unemployment rate in the whole of Austria, Tyrol is attractive for both domestic and foreign workers. Thanks to excellent educational opportunities, many students and families from Germany, South Tyrol and other regions of Austria are drawn to the Alpine region as well. 

A significant increase in population size can be credited to the capital Innsbruck in particular. This once small town with imperial-royal historic flair now has more than 130,000 inhabitants, and figures continue to rise. Innsbruck’s cosiness and idyllic atmosphere have been retained, despite population growth and popularity amongst tourists. Innsbruck is still one of the most liveable cities in the world. 

For a long time, the situation on the property market in the whole Alpine region was considered to be tense. This was reflected in the property prices in Kitzbühel and Zell am See, as well as in other places. The cities Salzburg and Innsbruck were particularly affected. Over the past few years, there have been drastic price increases in more or less all property classes and for all types of property in these two cities. Innsbruck is currently in the lead when it comes to flats. In 2019, the prices rose by a hefty 4.9% in comparison to the prior year. However, it is to be expected that the excess demand from the past few years has been eliminated. Presently, there are many promising new-build projects in Innsbruck and the surrounding area, which meet the needs of prospective buyers. The first trends from 2020 are extremely positive. 

Types of property in Innsbruck

Innsbruck and its surrounding area are characterised by notable variety on the property market. Whilst flats tend to dominate in town, various types of houses are available in the not too heavily populated commuter belt. Although plots of land are well sought-after, more of these are available in the popular ski resorts such as Kitzbühel and Ischgl. 



Buying a house in Tyrol and Innsbruck

There is a selection of high-quality houses in prime locations in Innsbruck. When buying a house in Tyrol, it must be noted that high demand is coupled with a limited offer. In the district Innsbruck-Land, country houses, villas and chalets are predominantly available. Classic one-family houses can mostly be found on the outskirts of the city. 

Buying a flat in Tyrol and Innsbruck

The property market in Innsbruck has something to offer for all target groups. From investment flats offering enough space for families or student residents to comfortable holiday flats, there is something suitable for everyone. In the urban area itself, small flats are mostly available. 60% of those new-build flats bought in 2016 had a living area of 40 to 70 square metres. 

Neighbourhoods & inhabitants of Innsbruck

The residential clientele in the west of Austria, especially in Innsbruck, is rather upmarket when compared with the rest of Austria. It is one of the wealthiest regions in the country. It is therefore not astonishing that property prices in Innsbruck’s neighbourhoods as well as in the bordering Tyrolean districts are relatively high. Unlike in other cities, there are no specific variations between different neighbourhoods concerning demographic structure. It is, however, the case that many students and employees of Leopold-Franzens University Innsbruck live in the neighbourhoods of Hötting, Mariahilf, St. Nikolaus and Wilten due to their proximity to this higher education institution.

Hötting West/Allerheiligen, Höttinger Au and Wilten have been some of the most popular neighbourhoods over the past few years. These are the neighbourhoods in which the most properties are sold. The most expensive neighbourhood is Hungerburg, where residential properties are seldom available and are therefore seldom sold. The second most expensive neighbourhood for purchasing and renting flats is Hötting. The cheapest properties are located in Reichenau. 

Although more than 90% of flats are bought by Austrians, the city’s population displays a high level of diversity. The largest group of foreigners are of German origin, followed by Italians. 

Rental and purchase prices on the property market in Innsbruck

In the area of Innsbruck, rental properties are available from €12.70 per square metre. In the first half of 2020, the average price for a rental flat was €15.48 per square metre. 

The cheapest purchase prices for existing properties in the vicinity of Innsbruck are around €2,800 per square metre. However, residential properties are seldom available in this price category. In Innsbruck, flats are sold for an average of €6,042.20 per square metre. In this context, it is important to note that higher square metre prices should be expected for new-build projects. 

Due to high prices for houses, normal detached houses are often placed in the category of luxury properties. In 2018, the average purchase price for a house in Tyrol with a surface area of 100 m² was €4,083.17 per square metre. In Innsbruck the average value is €5,354.55 per square metre. For a house with 200 m² the asking prices are significantly higher and the price per square metre is €6,474.42. Premium houses can be purchased in Innsbruck from a purchase price of around €2,500,000. 

Outlook

Generally, it can be assumed that the situation will normalise on the property market in Innsbruck. The prices for purchasing and renting flats are now stagnating on a relatively high level yet are still moderate when compared to Munich and many Swiss cities. High demand remains, however, in relation to all kinds of residential properties and plots of land. Innsbruck offers first-class investment opportunities for private and institutional investors, especially due to the many undergoing construction projects. 

For those interested in buying a house in Innsbruck yet finding it too costly, it is worthwhile to take a look at the district of Innsbruck-Land as well as in Schwaz and Kufstein. Just 17 kilometres away from the city boundary, magnificent properties can be found in Seefeld in Tirol, for example, as well as in other attractive locations.