Authored by the expert who managed and guided the team behind the Austria Property Pack
Yes, the analysis of Tyrol's property market is included in our pack
What will happen in Tyrol’s real estate market? Will prices go up or down? Is Innsbruck still a hotspot for foreign investors? How is Austria’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with local real estate agents, property developers, and clients who buy properties in Tyrol, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Short-term rentals will surge, especially in popular tourist areas
Tourism in Tyrol is booming, with a notable increase in visitors in 2023 and 2024.
In the 2022/23 tourism year, Tyrol saw a 15.4% jump in tourist arrivals, reaching 12.1 million, while overnight stays rose by 11.8% to 48.5 million. This influx naturally fuels the demand for places to stay, especially short-term rentals.
Tyrol alone boasts over 25,000 short-term rental options, catering to a diverse range of tourists. Prices fluctuate with the seasons, averaging $174 per night in summer and peaking at $233 in winter, reflecting a vibrant market that thrives on seasonal tourism.
Platforms like Airbnb and Booking.com have been game-changers, making it a breeze for tourists to find and book these rentals. This ease of access has significantly contributed to the market's growth.
In Vienna, short-term rentals are in high demand, with properties booked for an average of 281 nights a year and maintaining a 77% occupancy rate. This trend is likely similar in other popular tourist spots.
With the rise in tourism, the short-term rental market is set to experience a boom, especially in regions that attract a lot of visitors.
Sources: Presse Tirol, Likibu, Airbtics
2) Rents in Innsbruck will keep rising due to a growing population and limited housing supply
Innsbruck's population has been steadily increasing over the years. By 2024, the population reached an estimated 132,188, showing a consistent rise from previous decades. This steady growth indicates more people are choosing to live in Innsbruck, which naturally increases the demand for housing.
The influx of students further amplifies this demand. With the University of Innsbruck hosting over 28,000 students, the need for student housing is significant. This high demand for accommodations, especially among students, puts additional pressure on the housing market, driving up rental prices.
Adding to the challenge is Innsbruck's geographical setting. The mountainous terrain of Tyrol limits the availability of land for new construction. This scarcity of developable land means that there are fewer new properties being built, which restricts the housing supply and contributes to rising property prices.
Innsbruck's rental market is also characterized by low vacancy rates. This means that there are not many new properties available for rent, which further pushes rental prices higher. The combination of a growing population, high demand from students, and limited housing supply creates a perfect storm for rising rents.
Sources: World Population Review, The Mayor, City Population
We have made this infographic to give you a quick and clear snapshot of the property market in Austria. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Demand for apartments in Innsbruck will stay strong due to its lively cultural scene and educational institutions
The demand for apartments in Innsbruck is expected to stay strong for several reasons.
One major factor is the University of Innsbruck's growing international student population. In 2023, nearly half of the students, about 49.4%, came from abroad. This influx means a constant need for housing, as these students look for places to live while they study.
Innsbruck's lively cultural scene also plays a big role. Events like the Innsbruck Winter Festival draw in both tourists and locals. In the 2022/23 season, the city saw a 15.4% increase in guest arrivals, reaching 12.1 million, and overnight stays jumped by 11.8% to 48.5 million. This tourism surge boosts the demand for short-term rentals and apartments.
Residents of Innsbruck are quite happy with the city's cultural offerings, which are a hit with international students and researchers alike. The city's demographic, filled with students and young professionals, keeps the apartment demand high.
Innsbruck's charm isn't just in its events; it's in the everyday life that appeals to a younger crowd. The mix of educational opportunities and cultural experiences makes it a magnet for those seeking a vibrant lifestyle.
With such a dynamic environment, it's no wonder that apartment demand remains robust, driven by both the influx of students and the steady stream of tourists.
Sources: University of Innsbruck Facts and Figures 2023, Figures About Tourism, University of Innsbruck on EduRank
4) Rental yields in Tyrol will rise as demand for short-term holiday rentals increases
Tourism in Tyrol is booming, with more visitors and overnight stays in 2023 and 2024.
This surge means more people are looking for places to stay, especially short-term holiday rentals. Platforms like Airbnb are seeing a lot of action, with properties in Tyrol getting high ratings, like a 4.88 out of 5 for an apartment in Waier. This shows that tourists prefer short-term rentals over hotels.
Short-term rentals are not just popular; they’re almost always booked. With listings occupied for 285 nights a year and a median occupancy rate of 78%, the demand is strong. This means property owners can charge more, boosting rental yields.
As more tourists flock to Tyrol, the competition for these rentals heats up. This trend is great news for property investors, as rental yields are set to rise with the growing demand.
Owning a property in Tyrol could be a smart move, given the current market dynamics. With tourists increasingly choosing short-term rentals, the potential for profit is high.
For those considering buying property in Tyrol, now might be the perfect time. The combination of high demand and limited supply means rental prices are likely to increase.
Sources: Presse Tirol, Airbnb
5) Kitzbühel real estate will keep drawing international buyers, staying a prestigious location
The Kitzbühel area continues to be a magnet for international buyers due to its high demand for luxury properties. In 2023, the average sales price in the district was over EUR 2.2 million, with some properties reaching up to EUR 30 million. This significant price increase, especially in the luxury segment, highlights the area's appeal to affluent buyers.
Another factor contributing to Kitzbühel's allure is the strong rental yields for holiday homes. The region offers lucrative short-term rental opportunities during the ski season, attracting international investors looking for profitable ventures. This is further supported by the presence of high-profile international events like the Hahnenkamm race, which draws global attention and reinforces Kitzbühel's status as a prestigious location.
Moreover, the media coverage highlighting Kitzbühel as a luxury destination plays a crucial role in maintaining its prestige. Reports from real estate agencies such as Engel & Völkers frequently feature the region, showcasing its appeal to potential international buyers. The growing number of international real estate agencies operating in the area also indicates a rising interest from global investors, solidifying Kitzbühel's position in the luxury real estate market.
Sources: Engel & Völkers, Marlies Muhr Immobilien, Engel & Völkers Tirol Blog
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6) Holiday rental profits will drop due to stricter short-term rental regulations
Stricter regulations on short-term rentals in Tyrol are likely to impact the profitability of holiday rental properties. In the past, specifically in 2023 and 2024, there was a growing emphasis on enforcing local regulations in Austria, including Tyrol. Vacation rental hosts needed a permit from their respective building authorities, and exceptions were only allowed under specific conditions.
The Austrian government introduced stricter regulations, including mandatory property registration with penalties for non-compliance. This increased enforcement led to higher administrative costs and fines, which reduced profitability. Additionally, the need for permits, tax registration numbers, and compliance with tourism tax laws increased administrative costs for property owners, further reducing net profit margins.
Regions like Vienna and Salzburg in Austria had already implemented similar regulations. For instance, in Vienna, short-term rentals in residential zones were prohibited except for home-sharing, which didn’t need an exemption permit. This restriction reduced the number of available short-term rentals, impacting profitability. Media coverage often highlighted the challenges faced by short-term rental operators due to stricter regulations, which deterred property owners from engaging in short-term rentals.
Sources: Wunderflats, Enso Connect, Travelnest
7) Eco-friendly home development will grow due to new tax incentives for sustainable building practices
New tax incentives for sustainable building practices are set to encourage the development of eco-friendly homes, especially in regions like Tyrol. In 2024, Tyrol experienced a record year for housing subsidies, with 386 million euros invested in affordable and sustainable housing. This significant funding increase supports the development of eco-friendly homes, making it financially attractive for developers to pursue sustainable projects.
The construction of eco-friendly homes in Tyrol has been on the rise, with a notable increase in buildings meeting the passive house standard. This trend indicates a growing acceptance and demand for sustainable living solutions. Additionally, the global green building materials market, which was valued at USD 377.03 billion in 2022, is projected to reach USD 951.15 billion by 2030. This growth reflects a broader consumer preference for sustainable living, further encouraging developers to build eco-friendly homes.
Moreover, the Austrian government has been actively promoting sustainable development through policies aimed at reducing greenhouse gas emissions. These government campaigns advocate for sustainable building practices, providing a supportive environment for developers to adopt eco-friendly construction methods. The inclusion of sustainable building practices in national construction guidelines also ensures that new constructions adhere to environmental standards, promoting the development of eco-friendly homes.
Sources: PassREg, Engineered Tax Services, Ground News
8) Interest in Tyrolean real estate will move towards sustainable and eco-friendly properties
Tyrol's real estate market is shifting towards sustainable and eco-friendly properties.
International buyers are increasingly drawn to properties near ski resorts, not just for the rental income but also for their long-term value appreciation. These homes, especially when they boast sustainable features, are becoming hot commodities. Imagine owning a holiday home that not only pays for itself but also contributes to a greener planet.
People are now more than ever interested in homes with green features like solar panels and energy-efficient appliances. This trend is evident in the growing number of listings that proudly showcase their sustainability credentials. It's not just about saving on energy bills; it's about investing in a future-proof home.
The buzz around sustainable living and eco-friendly architecture in Tyrol is making the region even more appealing. The media spotlight on these topics is turning heads and opening wallets. Plus, the government is sweetening the deal with incentives for green building practices, pushing developers to meet high environmental standards.
For those considering a property purchase in Tyrol, it's worth noting that eco-friendly homes are not just a trend; they're becoming the norm. This shift is not only about personal preference but also about aligning with global movements towards sustainability.
As the world becomes more environmentally conscious, foreign interest in Tyrolean real estate is expected to grow, particularly for properties that offer sustainable living solutions. The combination of natural beauty and eco-friendly living is a powerful draw for international buyers.
Sources: UNWTO, ET Edge Insights
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.
9) Energy-efficient buildings will be a major selling feature for new properties in Tyrol
In recent years, energy-efficient building technologies have become increasingly important in Tyrol, and this trend is expected to continue. One of the main reasons is the significant rise in energy costs. In 2025, grid fees for electricity and gas in Tyrol are set to increase sharply, with electricity network charges going up by an average of 23.1% and gas network fees by 16.6%. This makes energy-efficient buildings more appealing to buyers who want to save on utility bills.
Additionally, the Tyrolean Building Regulations and Technical Building Regulations have been updated to mandate the use of highly efficient alternative heating systems. These regulations encourage the adoption of energy-efficient technologies, making them a standard feature in new constructions. This regulatory push aligns with the growing consumer awareness of environmental issues, which has been driving the demand for sustainable homes.
Moreover, media coverage has been highlighting the benefits of energy-efficient technologies, such as reduced utility costs and environmental advantages. This has further promoted the adoption of these technologies in new properties. As a result, real estate market reports are increasingly emphasizing energy efficiency as a key trend, indicating that energy-efficient features are becoming a major selling point for new properties.
Sources: Austrian Press, Innsbruck Government, International Energy Agency, The International
10) Property yields in ski resorts will increase as tourist activity and rental rates go up
Tyrol's ski resorts are booming with U.S. tourists, making it a hot spot for property investment.
In the 2023-2024 season, Tyrol saw a remarkable influx of visitors, with 191,000 nights spent by U.S. tourists alone. This surge has put Tyrol on the map as a premier ski destination, creating a buzz around accommodation demand.
During this bustling season, the bed occupancy rate in Austrian ski resorts, including Tyrol, hit 42% of capacity. This high occupancy shows that more tourists are choosing to stay longer, naturally pushing rental rates up.
Property owners in mountain resorts, like those in Tyrol, are seeing a significant boost in their earnings. The average daily rates (ADR) for rentals have jumped by 41.1% compared to the 2019-2020 winter season. This means higher yields for those investing in these properties.
With the increased tourist activity, the rental market in Tyrol is thriving. The demand for accommodations is not just a trend; it's a lucrative opportunity for property investors looking to capitalize on the area's popularity.
Investing in Tyrol's ski resorts could be a smart move, as the region continues to attract more visitors, leading to higher rental rates and better returns on property investments.
Sources: SnowBrains, Inntopia
11) Demand for homes in Tyrol's scenic villages will rise as remote work becomes more common
The residential real estate market in Tyrol is experiencing a surge in demand for properties in smaller, picturesque villages, largely due to the rise of remote work. In the past few years, particularly in 2023 and 2024, remote work became more common in Austria, with 70% of companies offering remote work options. This shift has allowed employees to work from home, at least part-time, leading them to seek out more scenic and peaceful living environments.
As property prices in urban areas like Innsbruck and Kitzbühel have increased, many people are looking for more affordable options in rural areas. This trend is driven by the desire for a better quality of life and lower living costs, which are often found in Tyrol's picturesque villages. Surveys have shown that remote workers prefer living in scenic locations, with 60% of respondents in a RE/MAX Austria survey expressing a preference for rural or natural settings.
Additionally, Tyrol has made significant investments in expanding its internet infrastructure, connecting thousands of new households with high-speed internet. This development is crucial for remote workers who need reliable connectivity, making rural areas more attractive. Real estate market reports have also indicated increased inquiries and sales in smaller Tyrolean villages, reflecting this growing interest in rural living.
Sources: The Mayor, RE/MAX Austria
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12) Property prices will adjust moderately in overvalued areas, resulting in more balanced growth
Property prices in Tyrol have been climbing faster than incomes, making it tough for many to buy homes.
In some areas, there's been a noticeable increase in the number of homes for sale, hinting at more properties available than interested buyers. This oversupply often leads to price stagnation or even a drop, as sellers try to outdo each other to attract buyers. Real estate agencies have observed that while prices remain high overall, certain regions aren't seeing the expected price hikes, likely due to this oversupply or waning demand.
Surveys reveal that people are becoming less inclined to pay the current high prices for homes. This hesitation might stem from worries about affordability or other economic issues. The media has also been pointing out how unsustainable these price trends are, which can make buyers more cautious and slow down the market.
For those considering buying property in Tyrol, it's worth noting that the market might soon see a moderate price correction in some overvalued areas. This could lead to more balanced growth, offering potential buyers a better chance to find affordable options.
Keep an eye on the market dynamics, as these shifts could present opportunities for savvy buyers. Understanding the local trends and being aware of the current oversupply can help you make informed decisions.
Sources: ResiClub Analytics, Business Wire, Engel & Völkers
13) Luxury property prices will rise the most as wealthy buyers drive demand
The luxury segment of the market in Tyrol is poised for significant price growth, primarily driven by affluent buyers. This trend is supported by the rising demand for luxury properties in the region, particularly in popular tourist areas like Kitzbühel and Seefeld. These areas have seen property prices continue to rise due to their appeal as holiday destinations.
The global increase in the number of high-net-worth individuals (HNWIs) further fuels this demand. In 2023, the ultra-wealthy population grew by 7.6%, and projections suggest a continued rise in the coming years. This growing demographic has the financial capability to invest in luxury real estate, driving up prices in exclusive markets like Tyrol.
Moreover, the limited availability of luxury real estate in Tyrol adds to the upward pressure on prices. The region's mountainous terrain restricts new property development, making existing luxury properties even more desirable. In Kitzbühel, for instance, prices for villas and chalets start at EUR 5 million, highlighting the exclusivity and high demand for such properties.
Sources: PR Newswire, Engel & Völkers
14) Demand for eco-friendly homes in Tyrol will grow significantly as buyers become more environmentally conscious
In recent years, particularly in 2023 and 2024, Tyrol has seen a significant investment in eco-friendly housing, with 386 million euros dedicated to affordable and sustainable housing. This includes numerous renovations and new buildings, highlighting a clear trend towards eco-friendly housing options.
Moreover, Tyrol is experiencing a rise in exclusive residential projects that focus on sustainability, such as the Zugspitz Residences, which incorporate photovoltaic systems and air heat pumps. This shift towards sustainable construction is supported by government incentives, ensuring that there is ample funding for eco-friendly home purchases and constructions in 2025.
Additionally, the growing awareness and concern about climate change among Tyrol residents are driving the demand for eco-friendly homes. This is further supported by the availability of green building materials and technologies in Austria, making it easier to construct sustainable homes. Real estate market reports likely reflect this trend, showing an increased interest in sustainable properties.
Sources: Ground News, Tirol Real Estate, Advantage Austria
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Austria. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Demand for accessible and senior-friendly housing in Tyrol will grow as the population ages
The aging population in Tyrol is creating a surge in demand for accessible and senior-friendly housing.
As more retirees settle in the region, the number of people over 75 in Austria is expected to rise from 844,000 to 1.077 million in the next decade. This shift is pushing the need for homes that are barrier-free and supportive, as many older adults prefer to stay in their own homes.
There's a growing interest in assisted living and intergenerational living arrangements, driven by this preference. However, Austria faces a shortfall of about 24,000 residential units, with an annual need for around 3,100 units specifically in the assisted living sector.
Investors are taking note, as well-planned senior properties can offer higher returns. This indicates a promising market for accessible homes in Tyrol, where the senior population is set to keep growing.
Real estate market analysis highlights this trend, showing that the demand for senior-friendly housing is not just a temporary spike but a long-term necessity.
With the demographic projections pointing towards a continued increase in the senior population, the need for more accessible housing options in Tyrol is becoming increasingly urgent.
16) Rural property yields will drop slightly as urban areas attract more investment
Urban areas in Tyrol are becoming a hot spot for investment, especially in 2023 and 2024.
Property prices in cities are climbing due to high demand and limited supply, making them attractive for investors. In tourist and ski areas, the demand is so high that major price drops are unlikely. This makes urban properties a safer bet for those looking to invest.
There's also a demographic shift happening. More people, especially younger generations, are moving to cities. This is backed by surveys and population data showing a clear preference for urban living. The government is also pouring money into urban infrastructure and public transport, making city life even more appealing.
Vienna, for example, offers higher rental yields than rural areas. A 1-bedroom apartment in Vienna's District 22 can bring in significantly more rent than a similar property in the countryside. This financial upside is drawing more investors to urban properties.
Media reports are also playing a role, often highlighting urban areas as investment hotspots. This buzz is making cities even more attractive to investors, who are looking for the best returns on their money.
Sources: Global Property Guide, Network Land, American Farmland Owner
17) Rural property prices in Tyrol will rise more slowly than urban areas due to ongoing urbanization trends
Urban areas in Tyrol are growing faster than rural regions, mainly due to population dynamics.
In places like Bolzano-Bozen, urban centers are expected to gain over 100,000 people by 2050, while rural areas face a population decline. This shift is largely driven by migration patterns, with many foreign citizens, including those from outside the EU, choosing city life. As more people flock to urban areas, housing demand skyrockets, pushing prices up. Meanwhile, rural areas don't see the same influx, so their property prices rise more slowly.
Infrastructure investment is another key player. Cities often get more funding for development, which can boost property values. Although we don't have specific numbers for Tyrol, this trend is common in urban development. Urban centers also offer more job opportunities, drawing in younger folks looking for work and better amenities.
Surveys and demographic studies back this up, showing that younger generations prefer city living. This preference fuels demand and, in turn, drives property prices higher in urban areas. The abundance of amenities and services, along with expanding transportation networks, makes cities even more appealing, further boosting property values.
Rural areas, on the other hand, don't see the same level of investment or population growth. As urbanization trends continue, rural property prices in Tyrol will likely increase at a slower pace compared to urban centers.
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.