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
Tyrol is one of Austria's most expensive regions for property, which means rental yields here tend to be lower than in other parts of the country.
We constantly update this blog post to reflect the latest data and market conditions in Tyrol's rental market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Tyrol.
Insights
- Tyrol's average gross rental yield of around 2.6% in early 2026 is significantly lower than Austria's national average because property prices here are the highest in the country.
- The gap between tourist hotspots like Kitzbühel (yields around 1.2% to 2.2%) and commuter towns like Wörgl (yields around 2.8% to 4.0%) can be nearly double, making location the biggest yield driver in Tyrol.
- Around 16% of Tyrol's housing stock has no primary residence registration, reflecting heavy second-home pressure that artificially constrains rental supply.
- Compact studios and one-bedroom apartments in Innsbruck and Kufstein consistently deliver the highest yield per square meter because renters accept paying more per m² for smaller units.
- Austria's Bestellerprinzip means landlords pay the broker fee when finding tenants, typically around one month's rent, which directly reduces first-year net yield.
- The Brenner Base Tunnel project is expected to improve accessibility along the Innsbruck corridor, potentially supporting stronger rent resilience in nearby neighborhoods.
- Innsbruck's official vacancy monitoring shows a tight market with rental vacancy estimated at just 2% to 4%, making tenant turnover less of a concern than in many other Austrian cities.
- Alpine weather exposure and older building stock in Tyrol mean landlords should budget 1.0% to 1.5% of property value annually for houses, compared to 0.7% to 1.0% for apartments.
What are the rental yields in Tyrol as of 2026?
What's the average gross rental yield in Tyrol as of 2026?
As of early 2026, the average gross rental yield across all residential property types in Tyrol sits at around 2.6%, which is notably lower than many other Austrian regions due to the region's exceptionally high purchase prices.
That said, the realistic range of gross yields in Tyrol spans from about 1.5% in premium ski resort areas to around 4.0% in more affordable commuter towns along the Inn Valley.
Compared to Austria as a whole, Tyrol's yields are compressed because the region has the country's highest apartment prices (around €7,000 per m²) while rents, though high, do not scale up proportionally.
The single biggest factor influencing gross yields in Tyrol right now is the extreme scarcity of buildable land combined with strong demand from both second-home buyers and local renters, which keeps pushing prices up faster than rents can follow.
What's the average net rental yield in Tyrol as of 2026?
As of early 2026, the average net rental yield in Tyrol is estimated at around 1.7% after accounting for recurring costs but before financing and income taxes.
The typical gap between gross and net yields in Tyrol is roughly 0.8 to 1.0 percentage points, which reflects the region's relatively high operating and maintenance costs.
The expense category that most significantly erodes gross yield in Tyrol is maintenance and repairs, especially for older buildings exposed to alpine weather conditions like heavy snow loads and moisture.
Most standard investment properties in Tyrol fall within a net yield range of 0.8% to 2.8%, with the lower end typical for luxury or resort properties and the higher end achievable in well-located commuter areas with efficient cost management.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Tyrol.
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.
What yield is considered "good" in Tyrol in 2026?
In Tyrol's high-price, supply-constrained market, a gross rental yield of around 3.3% or higher is generally considered "good" by local investors looking for long-term residential letting.
The threshold that separates average-performing properties from high-performing ones in Tyrol typically falls around the 3.0% gross yield mark, with anything above 3.3% indicating the investor either found an off-market deal, targeted a commuter town, or optimized the unit mix effectively.
How much do yields vary by neighborhood in Tyrol as of 2026?
As of early 2026, the spread in gross rental yields between Tyrol's highest-yield and lowest-yield neighborhoods can be nearly double, ranging from around 1.2% in premium resort towns to approximately 4.0% in working commuter areas.
The neighborhoods that typically deliver the highest rental yields in Tyrol are commuter-oriented towns along the Inn Valley such as Wörgl, Schwaz, Jenbach, Telfs, and Zirl, as well as Lienz in Osttirol and parts of Kufstein near the university and rail connections.
Conversely, the lowest yields in Tyrol are found in global ski resort destinations like Kitzbühel, St. Anton am Arlberg, and Seefeld in Tirol, as well as prime Innsbruck locations like Innenstadt and Saggen where prestige drives prices far above what rents can justify.
The main reason yields vary so dramatically across Tyrol neighborhoods is that purchase prices in tourist and second-home hotspots are driven by lifestyle buyers and international wealth, while rents remain anchored to what local workers and students can actually afford to pay.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Tyrol.
How much do yields vary by property type in Tyrol as of 2026?
As of early 2026, gross rental yields in Tyrol range from around 1.5% for large detached houses and luxury chalets to approximately 3.5% to 4.0% for compact studios and one-bedroom apartments in employment centers.
The property type currently delivering the highest average gross rental yield in Tyrol is the compact studio or one-bedroom apartment located near universities, hospitals, or transit hubs in places like Innsbruck and Kufstein.
On the other end, large detached houses, villas, and trophy chalets deliver the lowest yields in Tyrol because their purchase prices are driven by lifestyle and prestige buyers while rental income hits a ceiling set by local affordability.
The key reason yields differ between property types in Tyrol is that renters accept paying significantly more per square meter for smaller, efficient units, while the capital cost of large luxury properties scales up faster than the rent landlords can realistically charge.
By the way, you might want to read the following:
What's the typical vacancy rate in Tyrol as of 2026?
As of early 2026, the estimated residential rental vacancy rate in Tyrol is around 3% to 5% for long-term rentals, dropping to just 2% to 4% in tight markets like Innsbruck and Kufstein.
Vacancy rates vary across Tyrol neighborhoods, with urban employment centers seeing the lowest vacancy (around 2% to 3%) while more rural or seasonal areas may experience 4% to 6% vacancy during off-peak periods.
The main factor driving vacancy rates in Tyrol is the concentration of jobs, universities, and healthcare facilities, which creates persistent demand in certain areas while leaving others more dependent on seasonal tourism workers.
Compared to Austria overall, Tyrol's vacancy rate for actual rental housing is relatively low, but the region has a notable quirk: around 16% of dwellings lack primary residence registration, reflecting heavy second-home ownership that constrains true rental supply.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Tyrol.
What's the rent-to-price ratio in Tyrol as of 2026?
As of early 2026, the average rent-to-price ratio in Tyrol is approximately 0.19% to 0.25% monthly, which translates to around 2.3% to 3.0% annually and is essentially another way of expressing the gross rental yield.
For buy-to-let investors in Tyrol, a monthly rent-to-price ratio of 0.25% or higher (equivalent to 3.0% gross yield annually) is generally considered favorable, and anything above that typically signals either a below-market purchase or a well-chosen commuter location.
Compared to other Austrian regions, Tyrol's rent-to-price ratio is among the lowest in the country because property prices here lead the nation while rents, though high, are ultimately capped by what local incomes can support.
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.
Which neighborhoods and micro-areas in Tyrol give the best yields as of 2026?
Where are the highest-yield areas in Tyrol as of 2026?
As of early 2026, the highest-yield neighborhoods in Tyrol are commuter towns along the Inn Valley like Wörgl, Schwaz, and Kufstein, as well as Lienz in Osttirol and Innsbruck districts like Reichenau and Amras.
In these top-performing areas, gross rental yields typically range from around 2.8% to 4.0%, which is significantly above the Tyrol average of 2.6%.
The main characteristic these high-yield areas share is that they offer practical housing for local workers and commuters rather than second-home buyers, meaning prices stay grounded while rental demand from employed tenants remains strong and consistent.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Tyrol.
Where are the lowest-yield areas in Tyrol as of 2026?
As of early 2026, the lowest-yield neighborhoods in Tyrol are the internationally famous ski resort towns of Kitzbühel, St. Anton am Arlberg, and Seefeld in Tirol, along with prime Innsbruck locations like Innenstadt and Saggen.
In these low-yield areas, gross rental yields typically range from around 1.2% to 2.2%, which is well below the Tyrol average and often below inflation.
The main reason yields are compressed in these areas is that purchase prices are driven by global second-home demand and prestige rather than rental income potential, while rents remain limited by what the local tenant pool can actually pay.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Tyrol.
Which areas have the lowest vacancy in Tyrol as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy rates in Tyrol are Innsbruck (especially areas near the university and Klinik clusters), Kufstein (near the FH Kufstein and rail station), and commuter-belt towns like Telfs and Zirl.
In these low-vacancy areas, estimated vacancy rates typically range from just 2% to 3%, meaning landlords can expect their units to be occupied almost continuously.
The main demand driver keeping vacancy low in these areas is the concentration of stable employment, university students, and healthcare workers who need year-round housing regardless of tourism seasons.
The trade-off investors typically face when targeting these low-vacancy areas is that the same demand pressure that keeps units full also tends to push purchase prices higher, which compresses yields even as occupancy risk stays minimal.
Which areas have the most renter demand in Tyrol right now?
The neighborhoods currently experiencing the strongest renter demand in Tyrol are Innsbruck districts like Wilten, Pradl, and Hötting (near universities and hospitals), along with Kufstein near the FH campus and Telfs in the commuter belt.
The renter profile driving most of the demand in these areas consists of university students, young professionals, healthcare workers at the Tirol Kliniken, and commuters who work in Innsbruck but seek more affordable housing in nearby towns.
In these high-demand neighborhoods, rental listings typically get filled within one to two weeks of going live, and well-priced apartments near transit or university facilities often receive multiple inquiries within days.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Tyrol.
Which upcoming projects could boost rents and rental yields in Tyrol as of 2026?
As of early 2026, the top three infrastructure projects expected to boost rents in Tyrol are the Brenner Base Tunnel (a major EU-backed rail corridor), the Tirol Kliniken "KLINIK 2035" hospital investment program, and the Campagne Reichenau redevelopment in Innsbruck.
The neighborhoods most likely to benefit from these projects include areas along the Innsbruck-Brenner axis for the tunnel, Reichenau and nearby Innsbruck districts for the Campagne redevelopment, and the broader Innsbruck area for the hospital expansion which will attract healthcare workers.
Investors might realistically expect rent increases of around 5% to 10% in directly affected neighborhoods once these projects reach completion or key milestones, though the timeline spans several years and gains will be gradual rather than sudden.
You'll find our latest property market analysis about Tyrol here.
Get fresh and reliable information about the market in Tyrol
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What property type should I buy for renting in Tyrol as of 2026?
Between studios and larger units in Tyrol, which performs best in 2026?
As of early 2026, compact studios and one-bedroom apartments generally outperform larger units in Tyrol in terms of rental yield, though two-bedroom apartments offer better tenant stability and lower turnover.
Studios in Innsbruck and Kufstein typically achieve gross yields of around 3.0% to 4.0% (roughly €700 to €900 per month for a 30m² unit, or about $750 to $950 USD), while larger two to three bedroom apartments tend to yield around 2.0% to 2.8% despite charging higher absolute rents.
The main factor explaining why studios outperform on yield is that renters accept paying significantly more per square meter for small, efficient units, while landlords of larger units face a rent ceiling set by local affordability limits.
That said, larger two-bedroom apartments can be the better investment choice for landlords targeting young families or couples seeking longer tenancies, as these tenants typically stay two to three years rather than the one-year average common with student renters in studios.
What property types are in most demand in Tyrol as of 2026?
As of early 2026, the most in-demand property type for long-term renting in Tyrol is the one to two bedroom apartment in energy-efficient buildings near transit connections.
The top three property types ranked by current tenant demand in Tyrol are: one-bedroom apartments (favored by students and young professionals), two-bedroom family apartments in commuter towns (attractive to couples and small families), and compact studios near universities.
The primary demographic trend driving this demand pattern is the combination of university enrollment in Innsbruck, healthcare employment growth around the Tirol Kliniken, and workers being priced out of premium areas and seeking affordable commuter housing.
One property type currently underperforming in rental demand is the large luxury chalet or villa, which has a very thin tenant pool and remains primarily sought by second-home buyers rather than renters.
What unit size has the best yield per m² in Tyrol as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Tyrol is approximately 25 to 45 m², corresponding to compact studios and small one-bedroom apartments.
For this optimal size range in Innsbruck and Kufstein, typical gross rental yields run around 3.0% to 4.0%, with rents of approximately €18 to €24 per m² monthly (roughly $19 to $26 USD or €18 to €24 EUR per m²).
The main reason smaller or larger units tend to have lower yield per m² is that very small micro-studios face legal and practical constraints, while larger units hit an affordability ceiling where tenants cannot pay proportionally more, causing the rent-per-m² to drop even as total rent rises.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Tyrol.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Austria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What costs cut my net yield in Tyrol as of 2026?
What are typical property taxes and recurring local fees in Tyrol as of 2026?
As of early 2026, the estimated annual property tax (Grundsteuer) for a typical rental apartment in Tyrol ranges from around €150 to €400 (approximately $160 to $430 USD), while houses typically cost €300 to €800 or more depending on size and municipal rates.
Beyond property tax, landlords in Tyrol should budget for building reserve contributions (for condos), which can add another €300 to €600 annually (around $320 to $650 USD), plus minor municipal charges that vary by location.
Combined, these taxes and recurring local fees typically represent around 2% to 4% of annual gross rental income for a standard Tyrol investment property, which is relatively modest compared to many other countries but still meaningful for yield-conscious investors.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Tyrol.
What insurance, maintenance, and annual repair costs should landlords budget in Tyrol right now?
For a typical rental apartment in Tyrol, annual landlord insurance costs are often bundled into the building's operating costs for condos, but standalone landlord coverage typically runs €150 to €300 per year (around $160 to $320 USD) depending on coverage scope.
Landlords should budget approximately 0.7% to 1.0% of property value annually for maintenance and repairs on apartments, or 1.0% to 1.5% for houses, which translates to roughly €1,500 to €3,500 per year (around $1,600 to $3,800 USD) for a typical €300,000 property.
The type of repair expense that most commonly catches landlords off guard in Tyrol is weather-related damage from alpine conditions, including roof repairs after heavy snow loads, facade moisture issues, and heating system failures during cold winters.
In total, landlords should realistically budget around €2,000 to €4,500 annually (approximately $2,150 to $4,850 USD or €2,000 to €4,500 EUR) for the combined costs of insurance, routine maintenance, and unexpected repairs on a standard Tyrol rental property.
Which utilities do landlords typically pay, and what do they cost in Tyrol right now?
For standard unfurnished long-term rentals in Tyrol, tenants typically pay utilities directly through monthly advances (Betriebskosten) that cover energy and water, while landlords more commonly cover utilities only for furnished rentals or shorter-term lets.
When landlords do pay utilities (mainly for furnished or short-stay units), monthly costs typically run €150 to €300 (around $160 to $320 USD) for a standard apartment, with electricity averaging under €0.14 per kWh and gas around €0.055 per kWh based on late 2025 Austrian energy prices.
What does full-service property management cost, including leasing, in Tyrol as of 2026?
As of early 2026, full-service property management fees in Tyrol typically run around 6% to 10% of monthly rent (plus VAT where applicable), which translates to roughly €50 to €100 per month (around $55 to $110 USD) for a property renting at €900 monthly.
On top of ongoing management, the typical leasing or tenant-placement fee in Tyrol is around one month's rent, and because of Austria's Bestellerprinzip law, the landlord (not the tenant) pays this fee when hiring a broker to find tenants.
What's a realistic vacancy buffer in Tyrol as of 2026?
As of early 2026, landlords in Tyrol should set aside approximately 3% to 4% of annual rental income as a vacancy buffer in tight markets like Innsbruck and Kufstein, or 4% to 6% in more rural or seasonally dependent areas.
This translates to roughly two to three weeks of vacancy per year on average, or about one month every two to three years, which accounts for time needed for renovations between tenants, proper screening, and lease turnovers.
Buying real estate in Tyrol can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Tyrol, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Statistik Austria - Wohnen 2024 | It's Austria's official statistics office, publishing nationally comparable housing and cost data. | We used it to anchor Tyrol's rent-per-m² level and how rents differ across Austria. We also used it to keep our rent assumptions realistic, especially the gap between older contracts and new leases. |
| Statistik Austria - Wohnkosten Overview | It's the official portal for Austria's housing-cost statistics and methodology notes. | We used it to triangulate the official paid rent picture with market-facing data. We also used it to justify why average rent and new-tenant rent can diverge in Tyrol. |
| Statistik Austria - Immobilien-Durchschnittspreise | It's an official, transaction-based dataset showing what properties actually sell for. | We used it as a reality check for what actually transacts in Austria. We used it as a cross-reference when translating asking prices into conservative yield estimates. |
| Statistik Austria - Häuserpreisindex | It's the official House Price Index designed to track price movements over time. | We used it to update older price and rent reference points toward early 2026. We used it to keep our 2026 estimates internally consistent with national price trends. |
| Statistik Austria - Gebäude- und Wohnungszählung 2021 | It's the official nationwide housing stock count, including occupancy and residence status. | We used it to quantify structural vacancy and non-primary residence pressure in Tyrol. We used it to separate true rental vacancy from second-home effects. |
| OeNB - Residential Property Analysis | The Austrian central bank is a top-tier source for housing market analysis and risk monitoring. | We used it to contextualize why yields are structurally lower in high-price regions like Tyrol. We used it as a macro cross-check so our yield ranges match Austria's broader price and rent dynamics. |
| BEST Study - University of Innsbruck | It's an academic, Tyrol-specific study tied to a recognized local institution. | We used it to tailor the "why Tyrol is different" parts including tourism pressure and scarcity. We used it to justify neighborhood-level demand patterns beyond simple price charts. |
| Stadt Innsbruck - Vacancy Monitoring | It's the city's own program measuring local vacancy indicators. | We used it to anchor Innsbruck's vacancy situation instead of guessing from listings. We used it to set a realistic vacancy buffer for landlords in the Innsbruck area. |
| ImmoScout24 Austria - Price Analysis H1 2025 | It's a major portal with transparent methodology and explicit Tyrol-tagged numbers. | We used it to get Tyrol-specific price benchmarks for apartments and houses. We used it as the main price input for our yield calculations. |
| Arbeiterkammer - Broker Fee Rules | AK is the main consumer-protection institution and very reliable on fee rules. | We used it to explain who typically pays letting and broker fees. We used it to avoid folklore assumptions about tenant-paid commissions. |
| BMF - Grundsteuer (Property Tax) | It's the official tax authority explaining how property tax works in Austria. | We used it to size the property tax drag on net yields. We used it to keep the net yield section grounded in real recurring costs. |
| City of Innsbruck - Grundsteuer Ordinance | It's a primary legal document for local property tax rules in Innsbruck. | We used it to illustrate that tax rates are municipal and can vary within Tyrol. We used it to avoid hand-waving around local tax settings in Innsbruck. |
| E-Control - Energy Price Analysis | It's the regulator's own monitoring of electricity and gas prices and trends. | We used it to estimate realistic utility cost ranges when landlords pay utilities. We used it to size the utilities risk in net yield calculations. |
| IKB - Water and Wastewater Tariffs | It's the Innsbruck municipal utility publishing official tariffs. | We used it as a concrete example of recurring building charges in Tyrol's biggest rental hub. We used it to keep the recurring fees section factual rather than generic. |
| CINEA - Brenner Base Tunnel | It's an EU institution documenting a major cross-border infrastructure project. | We used it to identify a truly macro project that can shift Tyrol's rental demand over time. We used it to justify why certain corridors can see stronger rent resilience. |
| Stadt Innsbruck - Projects and Development | It's the city's public list of urban development initiatives and pipeline projects. | We used it to identify neighborhood-level development that could affect rental demand. We used it to ground our project impact estimates in official city planning. |
| Tirol Kliniken - KLINIK 2035 | It's the public hospital operator's official investment program documentation. | We used it to quantify a major employment driver supporting rental demand near hospitals. We used it to justify why healthcare worker housing demand will remain strong. |
Get the full checklist for your due diligence in Tyrol
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
Related blog posts