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 is happening in Tyrol’s real estate market? Are prices climbing or stabilizing? Is Innsbruck still a magnet for international buyers? How are local policies shaping real estate dynamics in 2025?
These are the questions we hear daily from industry experts, potential buyers, and sellers, from Kufstein to Lienz and everywhere in between. Maybe you’re curious about these trends too.
We understand this because we maintain close ties with local professionals and individuals like you, exploring the Tyrolean real estate landscape every day. That’s why we crafted this article: to deliver clear insights, thoughtful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we’ve missed something or could improve, we’d love to hear your feedback. Feel free to reach out with your thoughts, and we’ll strive to enhance this content for you.
1) Property prices in some rural Tyrol areas may slightly decline due to population outflow
Some rural areas in Tyrol are seeing a slight dip in property prices due to people moving away.
In 2023, Tyrol faced a situation where more people passed away than were born, leading to a natural population decrease. Young folks are heading to cities for better job prospects, leaving rural areas with a negative net-migration.
Schools are closing in these areas because of fewer students, which shows a drop in the younger population. This is important because young families are key to property demand, and their absence means fewer buyers for homes.
Real estate reports highlight that rural properties are taking longer to sell, a sign of reduced demand that can push prices down. The aging population in these regions means less activity in the housing market, as younger families move elsewhere.
Economic reports also point out a lack of investment in rural infrastructure, making these areas less appealing to potential buyers. This lack of development can deter people from settling in these regions.
Sources: Statistik Austria, Tirol Real Estate
2) Kitzbühel properties will remain popular, but nearby lesser-known villages will attract attention for their affordability
Properties in the Kitzbühel area have been highly sought after due to their unique alpine charm and high-quality furnishings. In 2023, the average sales price in the district was just over €2.2 million, with top properties achieving even higher prices. This trend continued into 2024, with properties in and around Kitzbühel, including neighboring villages like Kirchberg, Jochberg, and Reith, maintaining top prices.
The limited housing supply in Kitzbühel, driven by strict control over new construction permits due to its UNESCO World Heritage Site status, has further fueled demand. This limited supply is expected to persist, keeping Kitzbühel a highly sought-after region. Future projections indicate that prices of up to €30 million are possible for new-build chalets in luxury locations, highlighting the significant price increase in the premium segment.
Meanwhile, lesser-known nearby villages are gaining attention for their affordability. In 2023, property prices in the Brixental/Wilder Kaiser ski region, which borders Kitzbühel, fell by 9%, with an average price per square meter of €8,572. Similarly, in Bad Gastein, prices dropped by 14%, with an average price per square meter of €4,833. These price corrections, along with falling lending rates, have led to increased real estate transactions in these areas.
Sources: Snow Industry News, Engel & Völkers, Living Deluxe
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) New regulations will promote sustainable housing development in Tyrol
In recent years, Tyrol has seen a significant push towards sustainable housing, largely driven by new regulations and incentives. In 2024, the region experienced a record year for housing subsidies, with 386 million euros invested in affordable and sustainable housing. This financial support included funding for thousands of renovations and new buildings, highlighting the government's commitment to eco-friendly construction.
Tyrol is also home to the largest number of residential passive houses in Austria, with over 14,000 buildings meeting the passive house standard. This trend continued with the completion of a residential complex in Brixlegg in 2024, which featured 24 units adhering to these standards and incorporating green roofs for added sustainability. Such projects demonstrate the practical application of sustainable building practices encouraged by the new regulations.
Moreover, the introduction of stricter energy efficiency standards for new buildings in Austria has played a crucial role. These measures aim to reduce energy consumption and greenhouse gas emissions, aligning with the broader goals of sustainable development. The successful implementation of projects like the Brixlegg complex, which utilized state-of-the-art technology and eco-friendly materials, indicates a growing number of construction companies specializing in sustainable projects.
Sources: Ground News, B-Solution, Expatica
4) Foreign buyers will increasingly target Tyrol's luxury properties due to favorable exchange rates
In 2023, the U.S. dollar reached its highest level against the euro, with a rate of 0.9571 in October. This strong exchange rate made it more affordable for foreign buyers, especially from the U.S., to consider investing in Tyrol's luxury properties.
Economic reports from that time highlighted how the purchasing power of foreign currencies increased in the Eurozone. This meant that when the USD was strong, foreign buyers found it more appealing to purchase luxury properties in Tyrol, boosting their interest in the region.
Real estate agencies in Tyrol reported a noticeable rise in inquiries from foreign buyers during these favorable exchange rate periods. This trend suggested that the strong USD was a significant factor driving foreign interest in Tyrol's luxury real estate market.
Sources: Pound Sterling Live, Cushman & Wakefield
5) Short-term rental yields will rise in tourist-heavy areas as holidaymakers increase
Tyrol is seeing a significant rise in tourist numbers, with 12.1 million visitors in the 2022/23 tourism year.
This influx of holidaymakers is boosting the demand for short-term rentals, and experts predict that occupancy rates will bounce back to around 54.9% by 2025. This is a strong sign that tourists are increasingly choosing short-term rentals for their stays.
With more tourists, property owners are gaining confidence. The Average Daily Rates (ADR) for short-term rentals have increased by 2.1%, showing that operators can now charge more per night as demand grows.
In areas popular with tourists, the Revenue per Available Room (RevPAR) has risen by 3.4%, marking the first positive change since 2021. This is great news for those considering investing in short-term rental properties.
Tyrol's charm and attractions are drawing more visitors, and this trend is expected to continue. As a result, short-term rental yields in tourist-heavy areas are likely to increase, making it a promising time for property investment.
For those looking to buy property in Tyrol, the current market dynamics suggest a favorable environment. With the steady rise in tourist numbers and rental rates, investing in short-term rentals could be a smart move.
Sources: Presse Tirol, Jack Costigan Real Estate
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6) Rents in tourist areas will rise with growing short-term rental demand
In Europe, short-term rental bookings have skyrocketed, with 123.7 million guest nights in early 2024 alone.
Take Tyrol, for example, where tourist arrivals jumped by 15.4% in the 2022/23 tourism year, reaching 12.1 million guests. This influx naturally boosts the need for places to stay, pushing property owners to consider short-term rentals as a lucrative option.
Globally, the short-term rental market is on the rise, expected to grow from $111.08 billion in 2023 to $120.77 billion in 2024. Travelers are increasingly choosing these rentals over hotels for their unique and budget-friendly experiences.
As demand for short-term rentals increases, average daily rates are likely to climb, which could lead to higher rents in popular tourist spots. This trend is particularly evident in areas like Tyrol, where tourism is booming.
Property owners in tourist-heavy regions are catching on, often converting long-term rentals into short-term ones to maximize profits. This shift is driven by the growing preference for short-term stays among travelers.
With more tourists opting for short-term rentals, rents in these areas are expected to rise, reflecting the increased demand and potential for higher earnings.
Sources: Rental Scale-Up, Presse Tirol, Globe Newswire
7) Foreign buyers will increasingly seek properties in areas with rich cultural and recreational offerings
The demand from foreign buyers is likely to increase in areas with strong cultural and recreational offerings due to several key factors. First, the Tyrolean Sustainable Tourism Observatory reported a significant number of international overnight stays in the tourism year 2022-2023, highlighting the region's appeal to tourists who are drawn to its cultural richness and recreational activities.
Additionally, the expansion of international flights and travel routes by Austrian Airlines has improved connectivity to Tyrol, making it more accessible to foreign visitors and investors. This increased accessibility is expected to attract more foreign buyers interested in the region's cultural and recreational offerings.
Moreover, media coverage and strategic promotion of Tyrol's cultural and recreational attractions by initiatives like the Tyrolean Sustainable Tourism Observatory continue to enhance the region's appeal. These efforts, combined with government initiatives promoting cultural heritage and recreational activities, are likely to sustain and increase foreign interest in property investment.
Sources: Aviation Direct, UNWTO
8) Foreign buyers will prioritize properties with convenient access to international airports
Foreign buyers are keen on properties near international airports for convenience and accessibility.
Take Innsbruck Airport, for example. In 2023, it saw a slight uptick in passenger numbers and is planning to boost connections to major cities like Frankfurt and Vienna. This makes nearby properties more appealing to international buyers who value easy travel options.
In Tyrol, there's a strong demand for short-term rentals close to airports. This trend shows that foreign buyers are prioritizing properties with airport access. The competitive prices and high demand reflect the high quality of life and investment stability in the area, making these properties a smart choice for investors.
With more international flights coming to Tyrol and investments in airport infrastructure, the strategic importance of being near an airport is clear. Innsbruck Airport is investing in security and handling standards, which further boosts the value of nearby properties. This focus on convenience is a big draw for foreign buyers.
Media attention on the benefits of airport proximity is growing, suggesting that foreign buyers see significant advantages in owning properties with quick access to international travel. The ease of reaching major cities and the world from these locations is a major selling point.
As Innsbruck Airport continues to enhance its offerings, properties in the vicinity are likely to see price increases. This makes them even more attractive to investors looking for long-term gains and convenience.
Sources: Aviation Direct, IATA
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) Remote work trends will boost demand for homes with dedicated office spaces
The shift to remote work has surged, with 28% of employees working from home by 2023.
As more people work remotely, there's a noticeable uptick in home sales featuring dedicated office spaces. In 2023, 82% of people reported working from home, a significant rise from 59% in 2022, underscoring the need for a dedicated workspace.
Surveys reveal that 91% of remote workers enjoy the experience, with 68% having a very positive outlook. This enthusiasm for remote work is driving the demand for homes that can accommodate this lifestyle.
Interestingly, 98% of employees would recommend remote work to friends, showing a strong preference for this model. This trend is influencing real estate, with more properties now featuring home office spaces.
Real estate developers are catching on, incorporating flexible living spaces that can easily adapt to work needs. This shift is evident in new home designs that prioritize office spaces.
Architectural trends are also evolving, emphasizing versatile spaces that cater to both living and working requirements, reflecting the growing demand for such homes.
Sources: Exploding Topics, Work Well Remote
10) Rental yields in rural areas will slightly decline as more people migrate to urban centers
More people are moving from rural areas to urban centers, changing the landscape of where folks want to live.
In places like Tyrol, urban areas are becoming hot spots. Their natural beauty and tourist attractions are big draws, making these areas more desirable. This popularity is pushing up real estate prices because there's only so much space available, and everyone wants a piece of it.
Meanwhile, rural Tyrol is seeing a different story unfold. The demand for rentals here isn't as steady. It's like a rollercoaster, going up and down with the tourism trends. Urban areas enjoy a more consistent demand, but rural spots might not be as lucky, which can mean lower rental yields.
For those eyeing property in the countryside, it's worth noting that rural areas might not offer the same rental returns as their urban counterparts. This is because more people are flocking to cities, leaving fewer renters in the countryside.
So, if you're thinking about buying property, consider how these shifts might affect your investment. Urban centers are buzzing with activity, while rural areas might be quieter, both in terms of lifestyle and rental income.
Keep in mind that the trend of moving towards urban centers is expected to continue, which could further impact rental yields in rural areas.
Sources: Macrotrends, TenantCloud
11) Innsbruck’s urban rental yields will rise as demand for city living stays strong
Rental yields in Innsbruck are on the rise as more people flock to city life.
Innsbruck's charm isn't just in its mountains; it's in its growing population too. The city's vibrant cultural scene and influx of tourists and students are driving up the demand for rentals. With more people wanting to live here, landlords are seeing their properties become hot commodities.
But here's the catch: housing supply is tight. New housing projects are few and far between, making existing rentals even more desirable. This scarcity is a boon for property owners, as it naturally pushes rental yields higher.
Innsbruck is a magnet for students and young professionals, thanks to its proximity to universities and city amenities. This crowd is all about convenience, and Innsbruck delivers with its easy access to everything they need, from public transport to entertainment.
Young people today have a clear preference for urban living. They love the amenities and public transport that cities like Innsbruck offer. Surveys back this up, showing that residents prioritize areas with these conveniences, keeping the rental market buzzing.
Vacancy rates in Innsbruck's city center are dropping, a clear sign of strong demand for properties. This trend is great news for anyone considering investing in rental properties here.
Sources: Luxury Vienna, CARNM Realtor, Global Property Guide
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12) Property prices in remote mountain areas will drop as buyers focus on convenience
In recent years, we've seen a noticeable shift in property preferences, especially in regions like Tyrol. Back in 2023 and 2024, there was a growing trend of people moving towards urban or easily accessible areas. This was largely because these locations offered more convenience and better access to amenities.
One of the main reasons for this shift is the rising demand for properties in places like Innsbruck and Kitzbühel. These areas have become highly sought after due to their accessibility and the lifestyle they offer. For instance, Innsbruck had some of the highest property prices in Austria, which continued to rise, indicating strong demand.
Another factor is the increasing cost of transportation and commuting from remote areas. This has made buyers think twice about investing in properties that are far from urban centers. Additionally, younger buyers are prioritizing work-life balance and convenience, which often means choosing locations that are easier to reach and offer more amenities.
Sources: Engel & Völkers, Statista, AlpSatellites
13) Tyrol's property prices will rise moderately as demand exceeds supply
In recent years, Tyrol has experienced a unique property market dynamic compared to the rest of Austria. While the overall property prices in Austria have been falling, Tyrol's market has remained robust due to its strong economic performance, largely driven by tourism and winter sports. This has attracted both local and international investors, maintaining a steady interest in the region's real estate.
Looking back at 2023 and 2024, we saw a significant increase in net migration, with numbers rising from 77,600 in 2023 to 79,300 in 2024. This influx of people has contributed to a 1% rise in population, further fueling the demand for housing. However, the mountainous terrain of Tyrol limits the availability of land for new developments, creating a supply constraint that puts upward pressure on property prices.
Additionally, Tyrol's appeal as a tourist destination continues to drive demand for vacation properties. The trend of remote working has encouraged more people to seek homes in scenic locations like Tyrol, boosting demand for both holiday homes and rental properties. This ongoing interest from both domestic and international buyers is expected to continue driving up property prices in the region.
Sources: CSO Ireland, Global Property Guide, Ascendix Tech
14) Rental yields in less popular areas will drop as demand moves to more accessible locations
Rental demand is shifting from less popular regions to more accessible urban areas.
In places like Tyrol, tourism is declining due to climate change affecting winter sports, leading to lower rental occupancy rates. Meanwhile, cities such as Salzburg are thriving, with average rents hitting 11.3 euros per square meter in 2023 and a 78% median occupancy rate for short-term rentals.
Vienna is becoming a magnet for international students and professionals, thanks to job growth and a high quality of life. Multinational companies are setting up shop here, drawn by the city's excellent social security systems and government investments in urban development.
People are increasingly favoring urban living for its convenience, with amenities and services at their doorstep. Media reports often highlight the lifestyle perks of city life, such as cultural attractions and job opportunities, making places like Vienna and Salzburg even more desirable.
As a result, these cities are seeing a surge in rental demand, which is pushing up both rental prices and yields. The trend is clear: urban areas are becoming the go-to choice for renters, while less popular regions are losing their appeal.
Sources: Global Property Guide, Beyond Pricing
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) Tyrol will see rising demand for accessible, senior-friendly housing due to an aging population
As we look back at the trends from 2023 and 2024, it's clear that Tyrol, like much of Austria, is experiencing an aging population. This is evident from the increasing median age, which reflects a broader trend of population aging across the country. With more people living longer, the demand for housing that caters to older residents is naturally on the rise.
Life expectancy in Tyrol has been climbing, with men and women living well into their 80s. This means that more people are spending a significant portion of their lives as seniors, which increases the need for housing that can accommodate their changing needs over time. As people age, they often require homes that are easier to navigate and maintain, which is why accessible and senior-friendly housing becomes crucial.
Government reports have highlighted the demographic shifts, showing a growing percentage of elderly residents. This trend is not just a statistic; it translates into real-world needs for housing that supports an aging population. The demand for such housing is further supported by real estate market analyses, which have shown a rise in interest for properties with accessibility features. These features are essential for seniors who wish to maintain their independence while having the necessary support.
Sources: Statistics Austria, European Parliament, NIC MAP Vision, Eurostat
16) Innsbruck rents will keep rising due to high demand and limited supply
Innsbruck's rental prices are on the rise, and it's not just a coincidence.
With over 28,000 students flocking to the University of Innsbruck, the city is buzzing with young energy, but this also means fierce competition for places to live. Everyone wants a piece of the action, and it's driving rents up.
Tyrol, the region where Innsbruck is nestled, is seeing more people moving in, drawn by the vibrant city life. This urban magnetism is part of why Austria's urban areas grew by 1.4576% in 2023. More city dwellers mean more demand for housing.
But here's the kicker: new housing developments are scarce. The investment property market in Austria, including Innsbruck, isn't churning out new spaces like it used to. Fewer new properties mean the existing ones are hot commodities, pushing rents even higher.
So, if you're eyeing a property in Innsbruck, know that the limited supply and high demand are a recipe for rising rents. It's a classic case of too many people wanting too few homes.
Sources: Oesterreichische Nationalbank, DZ Hyp Residential Market Report, EHL Publication
17) Innsbruck’s suburbs will attract more interest as people seek quieter living with easy city access
Innsbruck's city center property prices have surged, making suburban areas more appealing.
With the rise of remote work, people are rethinking their living choices. Many now prefer the suburbs for a quieter lifestyle, away from the hustle and bustle of the city. This shift is largely due to the desire for larger homes and more green spaces, which are abundant in suburban areas.
Transportation improvements have made commuting from Innsbruck's suburbs much easier. People can now enjoy a peaceful suburban life without giving up quick access to the city. This convenience has made suburban living more attractive to those seeking a balance between tranquility and city life.
New residential projects are popping up in these suburban areas, catering to the growing demand. This development indicates a strong interest in moving away from the city center. As more people seek out these quieter environments, the suburbs are becoming a hot spot for potential buyers.
Innsbruck's suburban areas offer a unique blend of serenity and accessibility. With easy city access and a peaceful setting, these areas are drawing more interest from those looking to escape the city's high prices and noise.
Source: Luxury Vienna
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.