Tyrol and Salzburg regions: Excess demand keeps prices stable, despite coronavirus

The regions known as Tyrol and Salzburger Land are among the most sought-after in the whole of Austria. In addition to the beautiful scenery and the wide range of recreational and cultural activities on offer, property buyers are drawn by its central location in the heart of Europe, as well as by the good infrastructure and excellent healthcare system in Austria. Demand for real estate in Tyrol has remained unwaveringly high as a result, even during the coronavirus pandemic.

From March to June 2020, prices remained at a steady high. “In the short term there were some delays in closing the contracts on property sales. But looking ahead longer term, the level of demand is only set to shift marginally. This is because, for years, demand has exceeded the scarce availability of real estate here – both in the cities and in rural areas,” says Florian Hofer, Managing Partner at Engel & Völkers in the Tyrol and Salzburg regions. Even though there were strict lockdown restrictions in Austria during the initial period of the pandemic and viewings were not possible in person, property transactions did still take place via virtual property viewings thanks to digital technologies.

Kitzbühel: Top prices per square metre of up to 30,000 euros

Domestic buyers dominate the real estate market in the Tyrol and Salzburg regions. But, at the same time, it is also an interesting investment and second home market for buyers from Germany, the Netherlands and Switzerland. The majority of prospective buyers are increasingly looking for chalets, luxury country houses, comfortable freehold apartments and large plots of land, all located in peaceful surroundings. There is particularly strong interest in properties with exceptional locations, mountain views, and a modern Tyrolean style. In prime locations such as Kitzbühel and Innsbruck, top prices per square metre of up to 30,000 euros were recorded for premium freehold apartments in 2020. Exclusive villas and chalets occasionally sell here for as much as 30 million euros. Building plots in these locations can sell for up to 6,000 euros per square metre.

Home ownership is growing in importance

Engel & Völkers also expects prices to remain stable in the Tyrol and Salzburg regions in the future. Recent months have clearly shown that demand for homes remains strong and real estate has once again proven to be a crisis-proof investment: “Being a homeowner has become increasingly important for many people. One reason for this is that many have been working from home now for a prolonged period. The need to have somewhere for private retreat has intensified and we are registering a trend towards privacy. Our clients are looking in ever-greater numbers for properties in quiet, rural areas, surrounded by expanses of nature and far away from urban centres,” says Maria Rauscher, Managing Director at Engel & Völkers in the Tyrol and Salzburg regions.