Authored by the expert who managed and guided the team behind the Austria Property Pack
Yes, the analysis of Salzburg's property market is included in our pack
As we reach mid-2025, Salzburg's property market continues to command premium prices, making it Austria's second most expensive city after Innsbruck.
With average residential property prices around €915,000 and prices per square meter reaching €9,860, the market shows resilience and steady growth despite recent economic challenges.If you want to go deeper, you can check our pack of documents related to the real estate market in Austria, based on reliable facts and data, not opinions or rumors.
Property prices in Salzburg are going up, with a 4.1% to 6% increase recorded in prime locations during 2024-2025. The market shows strong fundamentals with limited supply, sustained international demand, and stable economic conditions supporting continued price appreciation.
As of June 2025, Salzburg remains Austria's second most expensive property market, with average prices at €915,000 and per-square-meter costs of €9,860, positioning it above Vienna in central districts.
| Market Indicator | Current Value (June 2025) | Year-over-Year Change |
|---|---|---|
| Average Property Price | €915,000 | +5% |
| Price per Square Meter | €9,860 | +4.1-6% |
| Prime District Prices | Up to €16,500/m² | +3-5% |
| Rental Yields | 3.4-3.8% | Stable |
| Market Forecast 2026 | +3-7% annually | Positive |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What are the current mortgage rates in Salzburg as of June 2025?
Mortgage rates in Salzburg currently average between 4.5% and 5.5% for standard residential loans.
Following the European Central Bank's recent rate adjustments, mortgage rates have stabilized after peaking in late 2024. The average rate for a 20-year fixed mortgage stands at approximately 4.8%, while variable rates hover around 4.2%. These rates represent a significant increase from the ultra-low rates of 2020-2021 but remain below the historical average of 7.74%.
Austrian banks have tightened lending criteria, requiring higher down payments of typically 20-30% for residential properties. First-time buyers may access special programs with lower rates through subsidized housing schemes. The removal of the KIM regulation in 2025 has made financing slightly more accessible, though banks remain cautious in their lending practices.
International buyers often face slightly higher rates, typically 0.5-1% above standard rates, and may need to provide additional documentation. Despite these higher rates, demand for mortgages remains steady as buyers adjust to the new interest rate environment.
Looking ahead, experts predict mortgage rates will remain stable through 2025-2026, with potential for slight decreases if inflation continues to moderate.
How much have Salzburg property prices increased in the last 12 months?
Salzburg residential property prices have increased by 4.1% to 6% over the past 12 months, depending on location and property type.
The average price per square meter rose from approximately €9,470 to €9,860 between June 2024 and June 2025. This represents one of the strongest performance metrics among Austrian cities, with Salzburg recording a 5% overall increase in average home prices - the highest growth rate in Austria during this period.
Prime locations such as the Altstadt, Riedenburg, and Aigen saw even stronger growth of 5-7%, with luxury properties now commanding up to €16,500 per square meter. These premium districts continue to attract both domestic and international buyers, maintaining consistent demand despite higher interest rates.
In contrast to the national trend where some regions experienced price corrections, Salzburg's market showed remarkable resilience. While used apartments in less desirable locations saw modest price adjustments of up to 10% in late 2024, these have since stabilized, and the overall market trajectory remains positive.
The rental market experienced even more dramatic increases, with average rents for 60m² apartments jumping from €15.48/m² to €17.35/m², representing a 12% increase year-over-year.
Which Salzburg neighborhoods are experiencing the fastest price growth right now?
The Altstadt (Old Town), Riedenburg, and Aigen districts are experiencing the fastest price growth in Salzburg, with annual increases of 5-7%.
The historic Altstadt remains the most prestigious address, with prices consistently above €8,500/m² and reaching up to €16,500/m² for exceptional properties. UNESCO World Heritage protection limits new development here, creating scarcity that drives continuous price appreciation. Luxury apartments with castle views or historic features command the highest premiums.
Parsch and Mülln represent the next tier of growth areas, with prices ranging from €7,500-8,500/m². These neighborhoods offer an attractive combination of central location, good infrastructure, and slightly more affordable prices than the ultra-premium districts. Young professionals and families are increasingly drawn to these areas.
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Emerging neighborhoods like Maxglan and Salzburg South are seeing increased interest, with prices in the €6,500-7,500/m² range. These areas benefit from good public transport connections and ongoing urban development projects.
Even traditionally affordable districts like Liefering and Taxham are experiencing upward pressure, though prices remain below €5,500/m², making them attractive for first-time buyers and investors seeking higher rental yields.
What types of properties are seeing the biggest price increases in June 2025?
Luxury apartments, small urban flats, and energy-efficient new builds are experiencing the strongest price growth in Salzburg's current market.
Exclusive apartments in prime locations, particularly those over 150m² with premium amenities, have seen price increases of 6-8% annually. Properties featuring historical elements, panoramic views, or private outdoor spaces command particular premiums. In the Altstadt, renovated historic apartments now regularly exceed €20,000/m².
Surprisingly, smaller apartments around 60m² have become hot commodities, with prices increasing dramatically due to high demand from singles, young professionals, and investors. These units have seen rent increases of over 12% year-over-year, making them attractive investment properties with yields around 4%.
| Property Type | Average Price/m² | Annual Growth | Typical Buyers | Investment Appeal |
|---|---|---|---|---|
| Luxury Apartments (150m²+) | €12,000-20,000 | 6-8% | International buyers | Capital appreciation |
| Small Urban Flats (60m²) | €8,000-10,000 | 5-7% | Young professionals | High rental yield |
| Energy-Efficient New Builds | €9,000-12,000 | 4-6% | Eco-conscious buyers | Future-proof investment |
| Family Homes (Suburbs) | €6,000-8,000 | 3-5% | Local families | Stable growth |
| Historic Properties | €10,000-16,500 | 5-7% | Culture enthusiasts | Prestige value |
Energy-efficient properties with smart home technology and sustainability certifications are commanding premium prices, often 10-15% above comparable standard properties.
Family-sized homes in suburban areas with gardens continue to see steady appreciation of 3-5% annually, driven by local demand and lifestyle changes post-pandemic.
What are the latest property price forecasts for Salzburg in 2026?
Property prices in Salzburg are forecast to increase by 3-7% annually through 2026, with prime locations expected to see the higher end of this range.
Market experts predict that Salzburg's residential property market will continue its upward trajectory, driven by fundamental factors including limited supply, strong tourism economy, and sustained international interest. The consensus forecast suggests average price growth of 4-5% annually, outpacing most other Austrian cities.
Short-term predictions for 2025-2026 indicate particularly strong performance in central districts, where supply constraints are most acute. The Altstadt and premium neighborhoods could see appreciation of up to 7% annually, while suburban areas may experience more moderate growth of 3-4%.
Interest rate stabilization expected through 2026 should support buyer confidence and transaction volumes. The ECB's anticipated rate cuts could provide additional stimulus to the market, potentially accelerating price growth beyond current forecasts.
However, experts caution that affordability constraints may moderate growth in some segments. The entry-level market faces particular pressure, which could limit price increases for smaller, more affordable properties outside prime locations.
How do current Salzburg property prices compare to Vienna and other Austrian cities?
Salzburg ranks as Austria's second most expensive property market after Innsbruck, with prices significantly higher than Vienna on a per-square-meter basis.
As of June 2025, Salzburg's average property price of €915,000 and €9,860/m² substantially exceeds Vienna's citywide average. While Vienna's prestigious Innere Stadt district commands prices up to €30,000/m² for exceptional properties, Salzburg's overall market pricing surpasses Vienna's average of approximately €5,500/m² in central areas.
This price differential reflects Salzburg's unique market dynamics: limited developable land due to UNESCO protections, strong tourism-driven demand, and proximity to Germany attracting cross-border buyers. Vienna offers more diverse pricing with affordable outer districts, while Salzburg maintains consistently high prices across most neighborhoods.
Compared to other major Austrian cities, Salzburg's premium is substantial. Graz properties average €5,491/m², while Linz sits at €5,060/m². Only Innsbruck commands higher average prices, though specific data for 2025 suggests Salzburg may be closing this gap.
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Investment yields tell a different story: Salzburg's gross rental yields of 3.4-3.8% lag slightly behind Vienna's 4.12% average, reflecting the higher property acquisition costs relative to rental income potential.
What impact are rising interest rates having on Salzburg's property market in 2025?
Rising interest rates through 2024 cooled transaction volumes but have not significantly impacted Salzburg property prices, which continue to appreciate in prime locations.
The European Central Bank's rate hikes pushed mortgage costs to 4.5-5.5%, reducing affordability for many buyers. Transaction volumes dropped by approximately 25% for apartments and 21% for single-family homes compared to the peak years. However, this cooling effect varied significantly by market segment.
Prime properties in central Salzburg showed remarkable resilience, with prices continuing to rise despite higher borrowing costs. Wealthy cash buyers and international investors, less dependent on financing, maintained demand in premium segments. The Altstadt and other exclusive districts saw virtually no price impact.
The most significant effects appeared in the mid-market segment, where local buyers rely heavily on mortgages. Used properties in less desirable locations experienced price adjustments of up to 10% in late 2024, though these have since stabilized. First-time buyers faced the greatest challenges, with many priced out or delaying purchases.
Looking forward, rate stabilization expected through 2025-2026 should restore market confidence. The removal of KIM lending restrictions has partially offset rate impacts, improving access to financing despite higher costs.
We made this infographic to show you how property prices in Austria compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
Which international buyers are most active in Salzburg's property market right now?
German and Swiss buyers dominate Salzburg's international property market, accounting for approximately 40% of foreign purchases in prime locations.
German buyers, particularly from Bavaria and other southern regions, view Salzburg as an attractive investment destination due to cultural affinity, geographic proximity, and relative value compared to Munich's property prices. They typically focus on luxury apartments in the Altstadt and family homes in prestigious suburbs, with budgets often exceeding €1 million.
Swiss investors bring substantial capital, attracted by Salzburg's cultural offerings and potential for currency diversification. They tend to purchase premium properties as second homes or investment assets, particularly favoring new builds with modern amenities and energy efficiency features.
A growing presence of buyers from Eastern Europe, particularly from Czech Republic and Slovakia, targets mid-range properties for both personal use and rental investment. These buyers often leverage Salzburg's strong rental market, achieving yields of 3.4-3.8% while benefiting from capital appreciation.
American and Asian buyers represent a smaller but significant segment, typically purchasing ultra-luxury properties exceeding €2 million. These buyers are drawn to Salzburg's cultural heritage, safety, and potential for European residency through investment.
The strong international demand continues to support price growth, particularly in tourist-friendly areas where short-term rental potential adds investment appeal.
How is the supply of new properties affecting Salzburg prices in mid-2025?
Severe supply constraints continue to drive Salzburg property prices upward, with new construction failing to meet demand across all market segments.
In 2024, Salzburg saw completion of approximately 1,200 new residential units, far below the estimated annual demand of 2,000-2,500 units. This structural undersupply, persisting for over a decade, creates continuous upward pressure on prices. As we reach mid-2025, the pipeline remains insufficient to balance the market.
UNESCO World Heritage protections severely limit development in the historic center, where demand is highest. The Altstadt sees virtually no new construction, explaining why prices here continue rising at 6-7% annually despite broader market moderation. Even renovations face strict regulations, maintaining scarcity of modernized historic properties.
Suburban areas offer more development potential, but face different constraints. Local opposition to densification, infrastructure limitations, and lengthy approval processes restrict new projects. Developments in areas like Liefering and Taxham progress slowly, typically delivering 200-300 units annually across these districts.
The few new developments coming online command premium prices, often 15-20% above resale properties, due to modern amenities and energy efficiency. Pre-sales for 2025-2026 completions show strong demand, with many projects sold out before construction completion.
This supply-demand imbalance is expected to persist through 2026 and beyond, supporting continued price appreciation.
What are rental yields looking like in Salzburg's different districts today?
Rental yields in Salzburg currently range from 2.5% in ultra-prime locations to 4.2% in emerging neighborhoods, with a city average of 3.4-3.8%.
The Altstadt and other premium districts offer the lowest yields at 2.5-3%, reflecting high property acquisition costs relative to achievable rents. Despite charging premium rents up to €23.30/m², the extreme property values of €12,000-16,500/m² compress yields. Investors here prioritize capital appreciation and prestige over rental income.
| District | Property Price/m² | Average Rent/m² | Gross Yield | Investment Strategy |
|---|---|---|---|---|
| Altstadt/Riedenburg | €12,000-16,500 | €20-23.30 | 2.5-3% | Capital growth |
| Parsch/Aigen | €8,000-10,000 | €18-20 | 3-3.5% | Balanced |
| Maxglan/Mülln | €6,500-7,500 | €16-18 | 3.5-3.8% | Income focus |
| Liefering/Taxham | €5,000-5,500 | €14-16 | 3.8-4.2% | High yield |
| Student Areas | €5,500-6,500 | €15-17 | 3.5-4% | Stable income |
Mid-tier neighborhoods like Maxglan and Mülln offer more balanced returns around 3.5-3.8%, attracting investors seeking both rental income and appreciation potential.
The highest yields of 3.8-4.2% are found in emerging districts like Liefering and Taxham, where lower property prices enable better rental returns despite modest rents.
Short-term rental potential significantly enhances yields in tourist-accessible areas, with some properties achieving 285 occupancy days annually.
Are there any new regulations affecting Salzburg property prices in 2025?
The removal of the KIM lending regulation in 2025 has improved mortgage accessibility, providing modest support to property demand and prices.
This significant regulatory change eliminated strict debt-service-to-income ratios and loan-to-value limits that had constrained borrowing since 2022. Banks can now offer more flexible lending terms, particularly benefiting middle-income buyers who were previously excluded from the market. Early data suggests a 15-20% increase in mortgage applications compared to late 2024.
However, no major new housing policies specifically targeting Salzburg have been implemented as of mid-2025. The city maintains its strict zoning and heritage protection regulations, continuing to limit new development, especially in the UNESCO-protected historic center.
Provincial housing subsidies remain available but unchanged, offering limited relief given Salzburg's high prices. First-time buyers can access supports covering 10-15% of purchase costs for properties under €400,000, though few Salzburg properties qualify given average prices exceeding €900,000.
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Tax policies remain stable, with property transfer tax at 3.5% and annual property tax based on outdated valuations, keeping carrying costs relatively low.
The regulatory environment continues to favor existing property owners while challenging new market entrants, supporting steady price appreciation.
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What's driving demand for Salzburg properties in the current market?
Strong tourism economy, international buyer interest, and severe supply constraints continue driving robust demand for Salzburg properties in 2025.
Salzburg's tourism sector remains a fundamental demand driver, with the city welcoming over 7 million overnight stays annually. This creates substantial demand for short-term rental properties, with investors achieving up to 285 occupancy days per year in prime locations. The Mozart festivals, Christmas markets, and year-round cultural attractions ensure consistent tourist flows.
Quality of life factors attract both domestic and international buyers. Salzburg consistently ranks among Europe's most liveable cities, offering Alpine access, cultural richness, and excellent infrastructure. The city's compact size, safety, and beauty appeal particularly to retirees and remote workers seeking lifestyle upgrades.
International demand remains robust, with German, Swiss, and Eastern European buyers viewing Salzburg as a stable investment haven. Political and economic uncertainties elsewhere in Europe enhance Salzburg's appeal as a wealth preservation vehicle. The strong rental market provides income while owners await capital appreciation.
Local demographic trends support demand, with population growth of 0.5-1% annually and increasing household formation among millennials. Young professionals particularly drive demand for smaller urban apartments, explaining the 12% rental growth in this segment.
Limited supply amplifies these demand factors, creating competitive conditions that support continuous price growth across all market segments.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Yes - Property prices in Salzburg are going up, with steady growth of 4-6% annually expected to continue through 2026. The combination of limited supply, strong international demand, and Salzburg's enduring appeal as a cultural and tourist destination supports ongoing price appreciation.
While affordability challenges and interest rate impacts have moderated growth compared to the boom years, Salzburg's fundamental market dynamics remain positive. Prime locations continue seeing the strongest growth, while even traditionally affordable neighborhoods experience upward price pressure. For investors and homebuyers, Salzburg represents a stable, appreciating market with long-term growth potential.
Sources
- Engel & Völkers - Property prices in Salzburg market report
- Bamberger Immobilien - Salzburg Real Estate Market 2025 Outlook
- Global Property Guide - Austria's Residential Property Market Analysis 2025
- Engel & Völkers - Property market Salzburg and Salzkammergut
- InvestRopa - The real estate market in Salzburg: 2024 forecast
- InvestRopa - 19 strong trends for 2025 in the Austria property market
- Numbeo - Property Prices in Salzburg
- Properstar - Salzburg housing prices
- Norada Real Estate - Housing Market Forecast 2025-2026
- Bankrate - Housing market predictions for the next 5 years