Buying real estate in Austria?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

The real estate market in Tyrol: 2024 forecast

Last updated on 

property investment Tyrol

Yes, the analysis of Tyrol's property market is included in our pack

As we step into the year 2024, the real estate landscape in Tyrol continues to evolve, presenting both challenges and opportunities for investors, homeowners, and industry stakeholders.

In this article, we will give you a clear picture of what's happening in Tyrol's real estate scene for the year ahead.

If you need a full and more detailed report, with fresh data and actionable advice, please note that you can get our property pack for Austria. This pack will also give you unlimited access to our team of experts, allowing you to ask them anything related to the housing market in Tyrol specifically.

How's the Austrian economy doing?

Current state

The real estate market in Tyrol, a region known for its stunning Alpine scenery and strong tourism sector, has historically been influenced by various economic and political factors.

Understanding the region’s economy is key; it's traditionally been stable and robust, primarily due to tourism, agriculture, and some specialized industries like high-tech manufacturing. This stability has positively impacted the real estate market, maintaining consistent demand, especially in tourist hotspots.

Focusing on the real estate market, it's seen as a dynamic field in Tyrol. The demand for both residential and commercial properties has been steady, thanks in part to the region's natural beauty and quality of life. The housing market, more specifically, has witnessed a steady increase in prices over the years.

This trend is driven by the desirability of the area, limited land availability due to the mountainous terrain, and a growing interest in holiday homes among both local and international buyers.

Government policies have played a significant role in shaping the housing market. Historically, regulations aimed at controlling development in this ecologically sensitive region have limited construction, which in turn has impacted housing supply.

More recently, there have been efforts to address housing affordability, especially for locals, through subsidies and restrictions on holiday home developments.

Notable events, such as economic downturns or shifts in tourism trends, have had temporary impacts, but the market has generally remained resilient.

As for recent regulatory changes, there have been moves to streamline property buying and selling processes, and in some cases, restrictions have been placed on foreign property ownership to prioritize local needs. This is crucial for foreign investors to be aware of.

From a local perspective, Tyrol is indeed an area where people like to invest in real estate. It’s seen as a safe investment due to the region's economic stability and the enduring appeal of its natural landscape.

Popular areas for investment include cities like Innsbruck, known for its urban amenities, and smaller towns close to ski resorts and hiking areas. Types of properties that are most sought after include mountain chalets, modern apartments in urban centers, and traditional farmhouses.

For foreign investors, specific incentives include the potential for rental income from tourism and the general appreciation of property values.

Drawbacks, however, include the aforementioned restrictions on foreign ownership in some areas and higher acquisition costs for non-EU residents.

Comparing real estate prices in Tyrol to neighboring regions or similar alpine areas, it's generally observed that prices here are competitive, reflecting the high quality of life and investment stability. Prices can be higher than in less tourist-centric regions.

Lastly, the legal framework for real estate investment in Tyrol is stable and transparent, aligning with Austria's overall high standards for legal processes. This provides a level of security for investors.

Outlook and forecast

Tyrol's real estate market has several unique factors.

First, its geographic location and natural beauty, with the Alps dominating the landscape, create a limited and highly desirable property market. This limitation in space naturally leads to a higher demand for available properties.

Additionally, Tyrol's strong tourism industry significantly influences the real estate market, especially in areas close to ski resorts and popular hiking destinations.

Forecasting the economy and stability of Tyrol, it's reasonable to expect a continued positive trajectory, especially given its robust tourism sector and the growing appeal of alpine living.

The region has traditionally experienced stable growth, often at a pace comparable to or slightly faster than other regions in Austria, thanks to its unique appeal to tourists and lifestyle seekers.

As for 2024, any anticipated changes in government policies could revolve around environmental sustainability and housing affordability. These might include stricter building regulations to preserve natural landscapes and measures to ensure affordable housing for locals.

Such policies could limit the availability of new developments, thereby potentially increasing the value of existing properties.

Specific facts that suggest improvements in Tyrol include ongoing investments in tourism infrastructure, like ski resorts and hospitality services, and a growing interest in sustainable living.

The region's commitment to preserving its natural environment and promoting eco-friendly tourism could enhance its appeal as a desirable place to live and invest in.

This could lead to an increase in property values, especially for properties that align with these sustainable and ecological values.

However, potential risks in investing in Tyrol's real estate market include the possibility of regulatory changes limiting foreign ownership or investment to protect local interests.

Moreover, the impact of global economic trends on tourism could affect property demand and prices. If, for example, there's a downturn in the global economy, this could lead to a decrease in tourist numbers, which in turn could lead to a softening of the real estate market, particularly in areas heavily reliant on tourism.

Make a profitable investment in Tyrol

Better information leads to better decisions. Save time and money. Download our guide.

buying property in Tyrol

What about housing prices in Tyrol?

If you want to know the last prices, rents and yields in Tyrol, we have prepared everything you need in our property pack for Austria.

Current state

In Tyrol, the real estate market has shown an upward trend in prices over the past few years.

This trend has been influenced by several factors, including the region's natural beauty, its popularity as a tourist destination, and limited space for development due to its alpine terrain.

The demand for properties, particularly in scenic locations and near tourist attractions, has consistently driven prices upward.

Looking at how real estate prices have reacted to past economic crises or booms, Tyrol's market has generally shown resilience. During economic booms, the demand for real estate in this picturesque region has often surged, leading to significant price increases.

Conversely, during economic downturns, while the market may have experienced a slowdown, the impact has typically been less pronounced compared to other regions.

This resilience can be attributed to the enduring appeal of Tyrol as a destination and the relatively stable local economy, heavily supported by tourism and outdoor recreation.

Comparing current real estate prices to those a decade ago, there's a noticeable increase. Prices have risen substantially, reflecting the growing demand and the limited supply of new properties.

Currently, the trend in real estate prices in Tyrol leans towards rising or at the very least, remaining stable. The area hasn't seen a significant decline in property values, thanks in part to its enduring appeal and the consistent demand for housing and vacation properties.

Regarding the types of properties experiencing the highest growth in real estate prices, properties in prime locations, such as those close to ski resorts, hiking trails, and with panoramic mountain views, have seen the most significant appreciation.

Additionally, luxury properties, including high-end apartments and spacious chalets, are also experiencing substantial price growth.

This trend is driven by the demand from affluent buyers, both domestic and international, who are attracted to the unique lifestyle and scenic beauty that Tyrol offers.

The population in Tyrol has seen some changes recently, with a slight increase in both the local and expatriate communities. This growth can be attributed to several factors, including the region's high quality of life, economic stability, and the appeal of outdoor activities and natural beauty.

The influx of people moving to Tyrol, either for employment opportunities, lifestyle changes, or retirement, has contributed to the sustained demand for housing, further influencing real estate prices.

Outlook and forecast

The current state of real estate prices in Tyrol is influenced by several economic and demographic factors.

One key factor is tourism, which is a major economic driver in the region. Tyrol's status as a top destination for skiing, hiking, and natural scenery attracts a steady flow of tourists year-round.

This tourism demand boosts the local economy and, in turn, increases the demand for real estate, particularly in tourist-centric areas like ski resorts and scenic towns.

Another factor is the limited availability of land suitable for development, constrained by the region's mountainous terrain. This scarcity of developable land naturally leads to higher property prices due to the limited supply.

Looking ahead, there are specific trends and events that could lead to an increase in housing prices in Tyrol.

The ongoing popularity of outdoor and wellness tourism, especially in the post-pandemic world where people value natural environments and health-oriented lifestyles more, is likely to continue drawing visitors and residents to Tyrol. This sustained interest can drive up demand for housing.

Additionally, if there are further investments in infrastructure, such as improvements in transportation or expansion of tourist facilities, this could make the region even more attractive, potentially increasing property values.

It's important to note that these factors may not uniformly affect all cities and regions in Austria. Urban areas like Vienna or industrial regions may have different dynamics affecting their real estate markets, such as job market trends, urban development policies, and broader economic factors.

Conversely, there are scenarios that could lead to a decrease in housing prices in Tyrol. One potential factor could be changes in environmental policies or regulations that restrict tourism development, which could reduce the influx of tourists and, by extension, demand for real estate.

Another possibility is a global economic downturn, which would impact tourism and potentially lead to decreased demand for holiday homes and secondary residences in the region.

These factors, however, may not similarly impact other regions of Austria, which are influenced by different local economic and demographic conditions.

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.

real estate market Tyrol

How's the demand for the real estate market in Tyrol?

Current state

In Tyrol, the current demand for residential real estate is quite robust, largely driven by the region's natural beauty, lifestyle appeal, and its status as a tourist haven.

This demand is more pronounced in areas close to major tourist attractions, ski resorts, and natural landmarks. Generally, the market is experiencing a situation where there are more buyers than sellers, reflecting a seller's market.

This imbalance can be attributed to the limited availability of land for new development, due to the region's mountainous terrain and strict zoning laws aimed at preserving the natural environment.

The supply of new housing in Tyrol is somewhat constrained, struggling to keep up with the increasing demand.

This limited supply is due to several factors, including strict building regulations, the focus on environmental conservation, and the challenges of constructing in mountainous areas. As a result, new housing developments are often smaller in scale and higher in price.

Buyers in Tyrol are typically looking for properties that offer a combination of comfort, access to natural beauty, and proximity to amenities like ski lifts, hiking trails, and local cultural attractions.

There's a notable demand for traditional Alpine-style homes, such as chalets and cottages, as well as modern apartments and condos that offer panoramic views of the surrounding landscape. Properties that provide a blend of rustic charm with modern conveniences are particularly sought after.

Current interest rates for mortgages play a significant role in shaping the buying power and demand of consumers. It's generally understood that lower interest rates increase buying power, enabling more people to afford homes.

Conversely, if interest rates rise, this can dampen demand as mortgages become more expensive, reducing affordability for potential buyers.

Recent changes in government policies or regulations can also significantly impact the local real estate market. In Tyrol, any recent adjustments in tax laws, housing subsidies, or zoning regulations would likely be aimed at balancing the need for development with environmental preservation and affordability.

For instance, if the government introduces subsidies for homebuyers, this could stimulate demand, especially among first-time buyers and locals.

On the other hand, changes in zoning laws that further restrict development in certain areas could tighten the supply, potentially driving up prices.

Outlook and forecast

In Tyrol, demographic shifts such as an aging population and urbanization are influencing the real estate market in distinct ways.

The aging population trend is leading to increased demand for properties that are accessible and easier to manage, such as single-story homes or apartments with amenities like elevators.

This demographic is also showing interest in properties that are close to healthcare facilities and within easy reach of essential services.

On the other hand, urbanization is drawing more people towards city centers, increasing demand for apartments and townhouses in urban areas, especially in cities like Innsbruck.

Current trends in household formation are also impacting the real estate market. There's a growing preference for smaller, more manageable living spaces, reflecting a trend towards smaller family units and a growing number of single-person households.

This shift influences the demand for smaller apartments and condos, particularly in urban areas where people seek the convenience of city living.

When it comes to real estate as an investment, there's a noticeable trend towards purchasing properties in tourist-friendly areas. Investors are interested in buying properties that can be rented out to tourists, such as holiday homes, apartments near ski resorts, and properties with good access to outdoor activities and scenic views.

These properties are attractive because they offer potential rental income and long-term value appreciation.

Cultural trends and shifts are also playing a role in the housing market. There's an increasing awareness and preference for sustainable living, which is influencing the demand for eco-friendly homes and properties with green features like solar panels, energy-efficient appliances, and sustainable building materials.

This trend favors properties that are either newly built with eco-friendly features or older properties that have been renovated to meet green standards.

The question of buying properties for investment versus living purposes is interesting in Tyrol. While there's still a strong market for primary residences, there's also a significant number of buyers who purchase properties as investments, especially in tourist-heavy areas.

These investment properties are often rented out on a short-term basis to tourists, creating a robust market for holiday rentals.

Foreign investment plays a substantial role in Tyrol's real estate market. Foreign investors are often attracted to the region's natural beauty and the potential for rental income from tourism. This demand from foreign investors tends to focus on high-end properties, luxury homes, and properties in prime tourist locations.

However, there are restrictions in place, particularly aimed at non-EU investors, to ensure that the local housing market remains accessible to residents. These restrictions can limit the impact of foreign investment, preventing it from overly inflating the market.

Finally, niche markets in Tyrol are experiencing unique trends. The luxury property market, for instance, is seeing sustained interest, especially in high-end chalets and villas with exceptional views and amenities.

Another niche market is that of eco-friendly homes, which is growing due to increased environmental awareness and the desire for sustainable living options.

Don't lose money on your property in Tyrol

100% of people who have lost money in Austria have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

invest real estate in Tyrol

How's the rental market in Tyrol?

Current state

In Tyrol, the demand for rental properties is influenced significantly by the region's popularity as a tourist destination and its appeal as a place of residence due to its natural beauty and quality of life.

This demand varies across different types of properties and regions within Tyrol.

Starting with the types of properties in high demand, there's a notable preference for apartments, particularly in urban and suburban areas. These apartments are preferred for their convenience, lower maintenance, and, often, their proximity to amenities like shops, public transport, and cultural attractions.

In contrast, single-family homes are more in demand in rural areas, where renters seek more space and a closer connection to nature.

The most sought-after features in rental properties tend to vary based on location. In urban areas, such as Innsbruck, tenants often prioritize location, preferring properties close to city centers where they can easily access work, leisure, and services. Size and modern amenities are also important.

In suburban and rural areas, tenants might prioritize larger living spaces, scenic views, and proximity to outdoor activities like hiking or skiing. Amenities like parking and garden spaces are also more valued in these areas.

Tenant preferences also vary based on demographic characteristics. In urban areas, you're likely to find a higher concentration of young professionals and students. These groups typically prefer smaller, more affordable apartments that are close to universities, workplaces, and social hubs.

In contrast, families and older adults might prefer suburban or rural areas where they can access larger homes with more outdoor space. The demographic profile in each area also influences the type of properties being rented.

For instance, student-dominated areas might see a higher demand for shared accommodations or studio apartments.

Income levels and economic factors play a crucial role in determining the type of properties tenants can afford in different areas.

Higher-income individuals or families might opt for larger, well-located properties with more amenities, while those with lower incomes might prioritize affordability and may have to compromise on size, location, or amenities.

This economic diversity creates varied rental markets within Tyrol, with some areas catering to more affluent tenants and others to those with more limited budgets.

Certain regions in Tyrol have a high concentration of specific tenant groups. University towns have a significant number of students, while areas close to major employment centers attract young professionals.

Tourist-heavy areas might see a higher demand for short-term rentals, and scenic, quieter regions might be more popular among retirees or those seeking vacation homes.

Outlook and forecast

The rental market in Tyrol is predominantly influenced by its status as a major tourist destination and the lifestyle preferences of its residents and visitors.

The presence of tourist attractions, especially ski resorts and hiking trails, means that there's a steady demand for short-term rentals throughout the year. Properties that are close to these attractions or offer scenic views are particularly sought after.

Evolving lifestyles and work patterns, such as the increase in remote work, are likely to have a significant impact on future rental preferences in Tyrol. With more people able to work from anywhere, there's a growing trend towards 'lifestyle renting', where tenants choose locations based on quality of life rather than proximity to a workplace.

This shift could increase the demand for rentals in scenic, quieter areas of Tyrol, potentially leading to a diversification of the rental market away from just urban centers.

Regarding demographic changes, Tyrol, like many other regions, is experiencing an aging population, which impacts the rental market. There's an increasing demand for properties that are accessible and easier to manage, suited to the needs of older residents.

This demographic shift could lead to a higher demand for single-level properties, apartments with elevators, and homes close to healthcare facilities.

Emerging urban areas in Tyrol, particularly those that have seen recent development or infrastructure improvements, are becoming new hotspots for rental properties.

For example, areas around Innsbruck that have benefited from improved transport links or new cultural or shopping facilities are attracting more renters. These areas offer the dual benefits of urban living and easy access to Tyrol’s natural landscapes, appealing to a broad range of tenants.

Technological advancements and innovations are also impacting the rental market in Tyrol. The integration of smart home technology, high-speed internet, and energy-efficient systems is becoming increasingly important to renters.

Properties that offer these modern conveniences are becoming more attractive, especially to younger renters and tech-savvy professionals.

Sustainability and green living trends are influencing the rental market as well. There's a growing preference for properties that are eco-friendly, with features like solar panels, energy-efficient appliances, and sustainable building materials.

This trend aligns with Tyrol's overall emphasis on environmental conservation and can be seen in both urban and rural rental markets.

The rental market forecast across various regions of Tyrol varies. Urban areas, especially those with universities or major employment hubs, are likely to continue seeing strong demand for rental properties.

In contrast, more remote or rural areas might experience fluctuations in demand, heavily influenced by tourism trends and the availability of amenities.

Long-term, the rental market in Tyrol appears robust, with potential growth in both urban and rural areas. The region's appeal as a tourist destination, combined with its quality of life, makes it attractive to a wide range of tenants.

However, this market is also subject to shifts in tourism patterns, technological advancements, and demographic changes.

Finally, there are niche markets in Tyrol experiencing unique trends. Luxury properties, especially in prime locations with exceptional views or amenities, are in high demand among affluent tourists and residents.

Similarly, eco-friendly homes are becoming increasingly popular, reflecting a broader societal shift towards sustainability.

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.

real estate market Tyrol

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.