All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Salzburg's property market is included in our pack
Thinking of investing in real estate in Salzburg? You're not alone!
Many people are enchanted by Salzburg's Alpine beauty and dream of owning a cozy chalet or a stylish apartment in this city.
Would it be a profitable investment, though? Are property prices increasing in Salzburg? What is the price per sqm? Should you consider buying in the Old Town or Lehen? Is there any hidden tax? Which places offer rental yields exceeding 7%?
We have all the answers you need.
The Investropa team has thoroughly explored this market. As a matter of fact, we have condensed all our findings in a pack. Get it now.
In the lines below, we'll provide you with helpful information.
How is the real estate market in Salzburg?
Is the property market getting better or worse? People have different views. We like to be unique and analyze the latest data and stats to make accurate conclusions.
Types of properties
In Salzburg, there are various types of properties available for sale.
These include apartments, houses, villas, and condos.
Apartments are usually smaller living spaces within buildings, while houses offer more space and often come with a yard. Villas are larger, luxurious homes with ample amenities, and condos are similar to apartments but offer ownership of a specific unit within a larger complex.
So, whether you're looking for a cozy apartment or a spacious villa, Salzburg has a range of property options to choose from.
Better to buy or rent?
(In case you want it for yourself, not for rental purposes)
If Salzburg, the enchanting Austrian city, is where you plan to settle, you may be considering the advantages and disadvantages of buying versus renting a property.
Without a doubt, you should buy if you want to acquire equity and have long-term financial security.
One data can help you make a decision - the property price-to-rent ratio. This metric shows the relationship between rental income and the cost of buying the property.
According to Numbeo, the property price-to-rent ratio in Salzburg is around 32.49, which is significantly above the world average.
It shows that it's quite expensive to purchase a home in Salzburg. However, it might still be worth it if property prices increase in value.
Property prices in Salzburg
On average, according to the last reported data from Austrian Federal Ministry of Agriculture, Regions and Tourism, buying a property in Salzburg would cost you around $7,400 per square meter.
Of course, prices vary. A city-center apartment in Salzburg might have a different price per square meter than a suburban house. We actually give you a more detailed breakdown in our pack for buying property in Salzburg and in Austria.
To help you understand better, it is 2.6 times less than the prices in the center of New York.
Also, housing prices in Salzburg are 8% cheaper than in Vienna.
The most expensive neighbourhoods in Salzburg are probably Aigen, Leopoldskron-Moos, and Taxham, while the cheapest neighbourhoods are likely Itzling, Gnigl, and Maxglan.
Trends
First and foremost, we have to acknowledge that Austria is, today, an exceptionally stable country. The last Fragile State Index that has been reported for this place is 25.4.
This is important to remember when wondering if it's a good investment to buy a property in Salzburg.
Also, according to the IMF’s forecasts, Austria's economy is expected to soar by 6.1% in the coming 5 years, resulting in an average GDP growth rate of 1.2%.
If you want to invest in real estate in Salzburg it's a good thing because it means (even) richer citizens, more demand for the housing market, less default on mortgages, better services, etc.
Also, in Austria, the average GDP per capita has changed by 1.9% over the last 5 years. Though not substantial, there is still a positive trend of growth.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Austria right now.
Buying property in Salzburg
It can be difficult to buy property in Salzburg due to the difficulty of obtaining reliable and up-to-date information about the market. That's why we have created the pack to buy property in Salzburg and in Austria.
Buying process
Within our pack, we have outlined the complete buying process. This includes the necessary documents, the applicable taxes, as well as information about where to locate properties, and more.
Here, we are providing you with a simpler version to assist you in better comprehending the information.
This is the step-by-step process to purchase a property in Salzburg:
- Obtain a valid residence permit, as non-EU citizens must have one to buy property.
- Engage a certified real estate agent familiar with Salzburg's market and regulations.
- Research local property ownership laws and restrictions, such as land use laws and historic building preservation rules.
- Attend property viewings and take note of cadastral records and energy performance certificates specific to Salzburg.
- Perform due diligence on the property, including checking for any liens or encumbrances.
- Secure financing from a local bank or financial institution.
- Draft a formal written offer in consultation with your agent and include specific contingencies, if necessary.
- Negotiate with the seller, taking into account local customs and property market trends.
- Hire a notary to oversee the purchase process and create the official purchase contract, which requires a specific form (Kaufvertrag).
- Obtain clearance from the Salzburg government or the Grundverkehrsbehörde (real estate authority) for property purchase by non-EU citizens.
- Pay a deposit, usually 10% of the property value, into the escrow account managed by the notary.
- On the completion date, sign the purchase contract before the notary, and the remaining funds will be transferred, and the property becomes officially yours. The notary registers the transaction with the Land Register (Grundbuchamt).
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Austria.
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Where to find a property
Explore these websites to find properties in Salzburg.
- Sotheby's International Realty - A luxury real estate agency in Austria, offering exquisite homes, apartments, and villas.
- Real Estate - A platform with a wide range of houses, apartments, and land for sale and rent across various Austrian regions.
- RE/MAX - Assisting in property transactions, they provide diverse options from alpine countryside to vibrant cities like Vienna.
- Austria Partner - AUSTRIA-PARTNER Real Estate presents a variety of Austrian properties including villas, castles, apartments, and hotels.
- Properstar - Offering apartments, houses, and commercial properties for sale and rent, with comprehensive property search and detailed listings.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Austria.
What you can get
As mentioned before, the average price per sqm in Salzburg is $7,400. A 1-bedroom property (60 sqm) would cost approximately $444,000, and a 2-bedroom (85 sqm) would be around $629,000.
However, the cost of properties will fluctuate depending on both their characteristics and their location.
Top neighborhoods in Salzburg typically come with higher price tags. An apartment in Altstadt could be around $850,000, and a house in Nonntal might be priced at $1,300,000.
Of course, some regions offer more affordability. You can find an apartment in Liefering for $240,000 or an apartment in Leopoldskron-Moos for only $200,000.
We give more details about property types and areas in our full pack for buying property in Austria.
Risks and pitfalls
Here are the main pitfalls when buying a property in Salzburg, Austria:
- Foreign buyer restrictions: Austria imposes specific regulations on non-EU citizens acquiring properties, requiring approval from local authorities.
- Historic property limitations: Historical buildings in Salzburg often come with strict preservation rules that limit modifications and renovations.
- Alpine property challenges: Properties in mountainous regions may face higher maintenance costs due to weather-related wear and tear.
- Tourist rental regulations: If planning to rent your property to tourists, be aware of local laws and restrictions on short-term rentals.
- Inheritance laws: Austrian inheritance laws can impact property transfer processes, necessitating legal advice for estate planning.
- Condo ownership complexities: Owning a condominium involves shared responsibilities and potential disagreements with other unit owners.
- Property tax variations: Tax rates differ across municipalities, and exemptions may apply differently to residents and non-resident buyers.
- Cultural nuances: Adapting to local customs and negotiation practices is crucial when dealing with Austrian sellers and real estate agents.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Austria Property Pack
Living in Salzburg
Salzburg is a beautiful city with a rich cultural history, offering an excellent quality of life for potential property buyers.
Cost of living
The cost of living in Salzburg is generally higher than the average in Austria, but it is still quite affordable compared to other cities in Europe. Salzburg offers a range of accommodation options, from budget-friendly hostels to luxurious hotels, so it is possible to find something that fits your budget.
Here are some examples to better understand the cost of living in Salzburg, Austria:
- A glass of Stiegl beer at a local pub: $4-$6.
- Rent for a one-bedroom apartment in the historic Altstadt (Old Town) neighborhood: $800-$1,200 per month.
- Monthly Salzburger Verkehrsverbund (SVV) public transportation pass: $60-$90.
- A bottle of Mozartkugeln, a famous Austrian chocolate treat, at a grocery store: $5-$8.
- Utilities (electricity, heating, cooling) for an 85m² apartment in Salzburg: $100-$150.
- A serving of Wiener Schnitzel at a traditional Austrian restaurant: $15-$20.
- Entrance fee to the Hohensalzburg Fortress, a historic landmark: $10-$15.
- Health insurance coverage for a family of four: $300-$500 per month.
Neighbourhoods
Since our intention is to present information in a clear and reader-friendly manner, we've created a summary table outlining the various neighborhoods in Salzburg. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Altstadt | Altstadt is the historic city center of Salzburg, famous for its charming medieval architecture and cultural landmarks like Mozart's birthplace. | Rich cultural heritage, bustling with tourists, close to major attractions. | Can be crowded and touristy, limited modern amenities. |
Nonntal | Nonntal is a picturesque neighborhood located at the foot of the Hohensalzburg Fortress, known for its green spaces and serene atmosphere. | Beautiful natural surroundings, peaceful environment, proximity to the fortress. | May have limited shopping and entertainment options, hilly terrain. |
Leopoldskron | Leopoldskron is an upscale residential area with a stunning lakeside setting and the iconic Leopoldskron Palace. | Scenic views, prestigious locality, close to the Salzburg Lake. | Real estate can be expensive, fewer public transport connections. |
Maxglan | Maxglan is a vibrant district with a mix of residential and commercial spaces, offering a lively atmosphere and diverse amenities. | Good shopping and dining options, well-connected by public transport. | Can be noisy, limited green spaces. |
Aigen | Aigen is an affluent area known for its elegant villas, beautiful gardens, and proximity to the Gaisberg mountain. | Exclusive residential area, green and tranquil surroundings, great mountain views. | Higher cost of living, limited commercial facilities. |
Gneis | Gneis is a family-friendly neighborhood with a mix of apartments and houses, offering a community feel and easy access to nature. | Quiet and safe, good schools and parks, ideal for families. | Less variety in entertainment, some areas may be distant from the city center. |
Morzg | Morzg is a residential area characterized by its open spaces, gardens, and recreational facilities like the Leopoldskron public swimming pool. | Relaxed atmosphere, leisure opportunities, easy access to the highway. | Relatively few shopping options, limited public transport connections. |
Elisabeth-Vorstadt | Elisabeth-Vorstadt is a lively and multicultural neighborhood with a diverse range of shops, restaurants, and entertainment venues. | Rich cultural diversity, vibrant nightlife, good public transport links. | Can be crowded, parking challenges, noise in some areas. |
Itzling | Itzling is a mix of residential and industrial areas, offering affordable housing options and proximity to the Salzach River. | Affordable rent, river views, good public transport connections. | Industrial zones can be noisy, limited green spaces in certain parts. |
Salzburg-Süd | Salzburg-Süd is a large district with a variety of neighborhoods, providing a mix of residential and commercial areas. | Diverse housing options, proximity to various amenities. | Traffic congestion in some areas, less distinct community feel. |
Life in Salzburg
Salzburg has a strong economy that is largely driven by tourism, with many companies in the city catering to the tourism industry. In addition, the city has a growing manufacturing sector that includes the production of electronics, pharmaceuticals, and other products.
What expats usually like the most in Salzburg is the beautiful scenery of the Alps and the old-world charm of the city's historic architecture. They also appreciate the vibrant cultural scene, with its numerous festivals, museums, and theaters.
A good point for a property investor - Salzburg has a modern mass rapid transit system, called the Salzburg S-Bahn.
Access to healthcare in Salzburg is generally good, with a wide range of public and private medical services available.
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Renting out in Salzburg
This section is for you if your goal is to buy a property and rent it out to generate income.
Long-term
Tenant Profiles in Salzburg
According to the data reported by Wikipedia, the home ownership rate in Austria is 51%, which is not much.
It means that, if you decide to buy and rent out in Salzburg, there will be a significant tenant pool. It's a good thing.
If you decide to buy and rent out to long-term tenants, you should target students, young professionals, and families looking for an affordable place to live in Salzburg. Other potential tenants include retirees, people relocating to the area for work, and short-term visitors looking for a place to stay.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in Altstadt | Professionals, expats | Historic charm, city center | $1,800 - $3,500 |
Apartment in Nonntal | Students, academics | Near University of Salzburg | $1,200 - $2,200 |
Studio in Lehen | Youthful professionals, artists | Urban vibe, local amenities | $900 - $1,800 |
Apartment in Maxglan | Families, young couples | Quiet neighborhoods, parks | $1,500 - $2,800 |
House in Parsch | Expats, affluent families | Suburban living, spacious | $2,800 - $5,000 |
Apartment in Elisabeth-Vorstadt | Young professionals, commuters | Convenient location, services | $1,100 - $2,200 |
Studio in Gnigl | Students, freelancers | Relaxed atmosphere, affordability | $800 - $1,500 |
Rental yields
As of today, rental yields in Salzburg are floating around 2 or 3%. It's low. A good rental yield is typically considered to be around 7% or higher.
Rental yields in Salzburg are typically highest in properties near the city centre, since they are in high demand due to their proximity to amenities and transport links. Properties in the more rural areas of Salzburg also benefit from good rental yields, due to the attractions of the area for visitors and tourists.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Finally, be aware that rental incomes in Salzburg are taxed at 23%, which is not bad.
Short-term
You could also decide to rent short-term to tourists visiting Salzburg, or to people attending events such as the Salzburg Festival or the Salzburg Marathon.
If you decide to go with that option, look for properties in the Old Town, Nonntal and the Linzergasse area, as they are popular locations among tourists and offer a great return on investment.
Currently, there are approximately 1,450 active Airbnb listings in Salzburg, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $176, which is quite high.
You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Salzburg can make around $2500 per month. Also, the average occupancy rate is estimated at 57%.
Is it worth buying real estate in Salzburg then?
Buying property in Salzburg can be a fantastic move if you're planning to make this charming Austrian city your long-term home. The rich culture, stunning Alpine scenery, and economic stability make it an attractive choice. Owning property in Salzburg gives you equity, financial security, and a sense of belonging.
You get to immerse yourself in local culture, enjoy festivals, museums, and theaters, and benefit from a strong healthcare system. But it's important to recognize that property prices are relatively high compared to renting, so you should consider the potential for property appreciation. While Salzburg's real estate market is stable, ensuring that your investment grows over time is crucial.
On the flip side, if you're solely looking for rental income, Salzburg might not be your best bet right now. Rental yields are relatively low at around 2-3%, which falls short of the desired 7% or higher. This means your rental income might not be as lucrative as in some other places. Plus, there are potential challenges, like foreign buyer restrictions and historic property limitations, which can complicate the buying process.
To sum it up, if you're planning to live in Salzburg and savor its culture and lifestyle, buying property makes sense. However, if your goal is solely to generate rental income, you might want to explore other markets with better rental yields.
Make sure you understand the real estate market in Salzburg
Don't rush into buying the wrong property in Austria. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.