Buying a property in Tyrol: a complete guide

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 Tyrol's property market is included in our pack

Considering buying a nice property in Tyrol? You're not alone!

Many people are captivated by Tyrol's alpine beauty and fantasize about owning a mountain chalet or a cozy apartment there.

Does it make sense from a financial perspective, though? Are property prices increasing in Tyrol? What is the price per sqm? Is it wiser to invest in Innsbruck or Kitzbühel? And the taxes? What rental yields should I expect?

We've got it all sorted. No worries.

The Investropa team has extensively researched this market. As a matter of fact, we have condensed all our findings in a pack. Get it now.

In the lines below, we will share some of this knowledge.

How's the property market in Tyrol?

Confused about the property market's status? Everyone has their views. We prefer data and statistics over opinions for accurate assessments.

Types of properties

In Tyrol, you can find various types of properties for sale.

These include charming alpine chalets nestled in the mountains, cozy apartments in picturesque villages, modern houses with stunning views, and spacious plots of land for building your dream home.

Whether you're looking for a rustic retreat or a contemporary space, Tyrol offers a diverse range of properties to suit different preferences and lifestyles.

Buying or renting?

(If you're buying for yourself and not to rent out)

Whether you've already made Tyrol your home or are contemplating it for the future, you might be wondering about the advantages of buying a property versus renting in this scenic Austrian region.

Usually, buying is better than renting in Tyrol due to its strong economy and low unemployment rate, providing a stable and secure environment for homeowners.

Nonetheless, if you favor flexibility, renting is the ideal route.

Property prices in Tyrol

On average, according to the last data from Austrian Federal Ministry of Agriculture, Regions and Tourism, buying a property in Tyrol will cost you around $6,500 per square meter.

Obviously, there are big differences. The value of a square meter for a mountain chalet in Tyrol might differ from a property in Innsbruck. We actually offer a more in-depth analysis in our pack for buying property in Tyrol and in Austria.

To give you a sense of scale, it is 2.9 times less than the prices in the center of New York.

Also, housing prices in Tyrol are 19% cheaper than in Vienna.

The most expensive places in Tyrol are probably Innsbruck and Kitzbühel, while the cheapest areas are likely to be the rural villages and towns.

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.

Keep this in view when pondering the viability of buying a property in in Tyrol.

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 Tyrol it's a good thing because it means people are getting richer and then housing prices are likely to increase.

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 Tyrol

Buying real estate in Tyrol can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Tyrol and in Austria.

Buying process

In our pack, we've laid out all the steps involved in the buying process, including the required documents, taxes to be paid, and guidance on finding properties.

Now, we're giving you a more straightforward version to help you grasp the information more easily.

This is the step-by-step process to purchase a property in Tyrol:

1. Research the Tyrolean property market and find suitable properties.
2. Engage a licensed real estate agent specialized in Tyrol.
3. Verify the Grundbuch (Land Registry) for property ownership and legal status.
4. Obtain financing or a Bankgarantie (bank guarantee) for the purchase.
5. Make an offer through a Vorvertrag (preliminary contract) with essential details.
6. Negotiate terms, including the Eintragungsvormerkung (preliminary registration).
7. Conduct a detailed property inspection and arrange for a Gutachten (appraisal) if required.
8. Sign the Kaufvertrag (purchase contract) with all agreed-upon terms and a Beurkundung (notary certification).
9. Pay the required Anzahlung (down payment) to the seller.
10. Finalize mortgage arrangements with a Hypothek (mortgage) if needed.
11. Attend the Eigentumsübertragung (property transfer) at the notary to complete the transaction.
12. Register the property at the Grundbuchamt (Land Registry Office) to receive the new Eigentumsurkunde (ownership title) in Tyrol.

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.

Make a profitable investment in Tyrol

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Where to find a property

Discover properties in Tyrol through these websites.

• Sotheby's International Realty - A luxury real estate company in Austria offering exquisite homes, apartments, and villas.
• Real Estate - Offering a wide range of houses, apartments, and land for sale and rent in various regions of Austria.
• RE/MAX - Assisting in buying and selling properties, providing options from alpine countryside to vibrant cities like Vienna.
• Austria Partner - AUSTRIA-PARTNER Real Estate offers diverse properties in Austria, 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 could get

As mentioned before, the average price per sqm in Tyrol is $6,500. A 1-bedroom property with a size of 60 square meters would cost approximately $390,000, and a 2-bedroom property with a size of 85 square meters would cost approximately $553,000.

However, prices will change based on both the property itself and its location.

Prime property locations in Tyrol typically mean higher property valuations. A residence in Innsbruck might come to around $1,580,000, whereas a property in Seefeld could be priced at $690,000.

Yet, there are places that are easier on the wallet. You may find a house in Hall in Tirol for $500,000, or you might discover a house in Schwaz priced only at $410,000.

We give more details about property types and areas in our full pack for buying property in Austria.

Mistakes to avoid

Here are the main pitfalls when buying a property in Tyrol, Austria:

• Alpine land restrictions: Certain areas are off-limits due to environmental protection laws and alpine pasture regulations.
• Foreign ownership limitations: Non-EU citizens face restrictions on purchasing agricultural and forestry land.
• Tourism impact: Seasonal rental bans may affect property income during peak tourist periods.
• Water rights: Clarify water source rights, as some properties rely on shared or restricted water usage.
• Historical property preservation: Restoration regulations can limit modifications to maintain heritage charm.
• Farming restrictions: Agricultural properties often require specific qualifications or experience to purchase.
• German contracts: Ensure you fully understand legal documents and terms, often written in German.
• Dual tax systems: Grapple with both Austrian national and Tyrolean regional tax implications when buying property.

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 Tyrol

Life in Tyrol is ideal for those looking for a balance between city and nature, with plenty of outdoor activities, stunning landscapes and a vibrant cultural scene.

Cost of living

The cost of living in Tyrol is relatively low compared to other parts of Austria. Prices for basic goods and services are generally lower than the national average, making it an attractive place to live for those on a budget.

Here are some examples to better understand the cost of living in Tyrol, including unique items and places:

• Rent for a one-bedroom apartment in Innsbruck's Altstadt: €900/month.
• Monthly pass for the Tyrol S-Bahn: €70.
• Local delicacies: Tiroler Gröstl at a restaurant: €12-15.
• Ski pass for Axamer Lizum: €40-50/day.
• Tiroler Almkäse (Alpine cheese) from a local dairy: €10/250g.
• A bottle of Stiegl beer, a Tyrolean brand: €2.50-3.
• Visit the Swarovski Crystal Worlds: €20-25 entrance fee.
• Schnapps tasting at a traditional distillery: €10-15.

Areas and spots

We want to show information in an easy-to-understand way. So, we made a table that lists the different regions in Tyrol. For yields, prices and rents, check our property pack.

Life in Tyrol

The Tyrol region of Austria is a prosperous area with a strong economic base, thanks to its well-developed tourism industry, agricultural production, and manufacturing sector. It also benefits from its strategic location in the heart of Europe, close to major trading partners.

What expats usually like the most in Tyrol is the stunning mountain scenery and the vibrant cultural life. They also enjoy the excellent outdoor activities, such as skiing, hiking, and mountain biking.

Tyrol has good access to healthcare, with a range of hospitals and clinics providing both public and private services.

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Renting out in Tyrol

If you're considering purchasing property solely for renting and earning income, you'll find valuable information in this section.

Long-term

According to the data reported by Wikipedia, the home ownership rate in Austria is 51%, which is not much.

In contrast to urban areas like Vienna, where renting is common among city dwellers, most people in Tyrol choose to invest in property, reflecting their preference for homeownership.

If you decide to rent out long-term, you might want to target people who are looking for a rural lifestyle, such as retirees, second-home owners, and people who are looking for a quiet, mountain-based experience. Additionally, Tyrol is popular with outdoor enthusiasts, so you might want to target those who are looking for an active lifestyle.

Here is a little summary table we've made for you.

Now, you will probably ask us about the yields. Unlike other places, giving you an average rental yield for Tyrol is though. The region is quite varied. For example, rental yields in Innsbruck and Kitzbühel are quite different from those in more remote areas.

Finally, know that, in Austria, the taxes will be around 23% of the total rental income.

Short-term

You could also decide to rent short-term to skiers visiting the Tyrol region during the winter season, as well as hikers, bikers, and other outdoor enthusiasts taking advantage of the alpine scenery during the summer months.

If you decide to go with that option, look for properties in Innsbruck, Kufstein, Mayrhofen, Seefeld, and St. Anton am Arlberg. These areas are known for their ski resorts and outdoor activities, making them popular destinations for short-term rentals.

Is it worth buying real estate in Tyrol then?

Absolutely, buying a property in Tyrol can be a fantastic decision, but it's not a one-size-fits-all solution. If you're someone who values stability, Tyrol's strong economy and low unemployment rate make it an excellent choice. Owning property here, whether for yourself or as an investment, is generally more advantageous than renting due to the region's financial security.

Plus, if you're an outdoor enthusiast who dreams of skiing, hiking, or mountain biking in breathtaking alpine landscapes, Tyrol is a paradise. You'll have easy access to all these activities right at your doorstep. Moreover, Tyrol's lower cost of living compared to other Austrian regions is a huge bonus, making it an attractive destination for those who want an affordable yet picturesque lifestyle.

On the flip side, Tyrol might not be the best fit if you're on a tight budget, especially in prime locations like Innsbruck or Kitzbühel, where property prices can be high. If you're looking for a quick return on investment or planning to sell the property within a few years, Tyrol might not offer the immediate gains you seek, as real estate investments generally require a longer-term perspective.

Additionally, language barriers and unfamiliarity with Austrian property laws could pose challenges for non-German speakers, making the buying process more complicated. Furthermore, be aware of ownership restrictions if you're a non-EU citizen, as these can limit your choices.

Finally, some areas in Tyrol heavily rely on tourism, which can lead to seasonal fluctuations in rental income, potentially impacting your financial stability.

In essence, Tyrol has much to offer, but it's crucial to weigh your financial situation, investment goals, language skills, and the specific location and type of property you desire. It's a place where careful research, local expertise, and aligning your choices with your unique circumstances are the keys to making a wise property investment decision.

Make sure you understand the real estate market in Tyrol

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.

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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.