The federal land of Salzburg is a popular tourist region in Austria as over 7 million tourists visit the state every year, due to its large number of ancient castles, the biggest nature reserve in Central Europe and other cultural and tourist attractions are located here. Salzburg is also one of the most expensive regions in Austria in terms of property value. The high price of real estate is influenced by a stable population growth, high standard of living and low construction rates.

We have prepared a special article about the key features and advantages of investing in real estate in Salzburg.

Features and uniqueness

The region entered the Austrian borders in 1816 and land here has always belonged to rich Catholic bishops who mined salt and obeyed only The Pope. Salzburg is divided into 5 districts and 119 communities with a rich natural and cultural heritage. The area of the territory constitutes 7,154 sq. km. The federal land is often called "the heart in the heart of Europe" as there are medieval castles, beautiful old towns, Alpine mountains and lakes here. Salzburg is also known for its ski resorts with trails of varying complexity.

Salzburg is a federal state in west-central Austria. The name is historically associated with the salt industry, which has been developed here since ancient times, from the German ”Salz” – salt, and ”Burg” – fortress, a salt fortress.

Salzburg is the sixth largest area in Austria, where the region is bordered by Styria on the east, Carinthia in the south, Tirol on the south and west and by German Bavaria on the west and north. Nine-tenths of Salzburg federal land is nestled amongst the Alps, in which some of the most beautiful mountain scenery in the world are located here.

The capital of the federal state is Salzburg town and the fourth largest city in Austria after Vienna, Graz and Linz. The principal cities include Hallein, Zell am See, Sankt Johann, Badgastein and Salfelden am Steinernen-Mer and the density of the population in Salzburg is one of the lowest in Austria, with only 78 inhabitants per sq. km. The population in 2021 was a little more than 560,000.

Landmarks

Salzburg is a very popular tourist region in Austria. Every year, about 7 million tourists visit the federal land, who most often come to the capital – the city of Salzburg, which is the birthplace of the great composer Mozart.

The land of Salzburg is known for its numerous natural, historical and architectural attractions. Among the most popular landmarks are the following:

Hohenwerfen Castle

Hohenwerfen Castle is located on a 155-meter mountain above the valley of the Salzach River. The castle was built in the XI century when Prince-Archbishop Gebhard of Salzburg decided to build it to protect the only pass in the mountains through which the conquerors could penetrate. In the XVII century, the castle was destroyed almost to the ground during the peasant war, but as a result of centuries of restoration work, the fortress has taken on a modern look. In 1987, a museum was also opened here.

Hohensalzburg Fortress

Hohensalzburg Fortress is the former residence of the prince-archbishops and the largest medieval fortress in Europe. Hohensalzburg is located on the Festungsberg mountain, at an altitude of 120 m above sea level. There is a fortress museum with exhibits dedicated to the history of Hohensalzburg and the daily life of its inhabitants. A funicular is used for ease of movement.

Fort Mauterndorf

Fort Mauterndorf is situated on the site of an old Roman fort in the foothills of the Alps at the entrance to the Taurachtal Valley. In the XIII century, Mauterndorf began to play the role of a customs post, where taxes were collected on goods imported along the trade route from Italy to Germany. And at the beginning of the XIX century, the castle became the property of the Austrian state and required restoration, which began in 1894. To date, theatrical performances for kids and romantic tours for adults are arranged and conducted in the fort. Visitors can take part in a knight's feast, try on medieval armor and even master the technique of fighting with medieval weapons.

The Hohe Tauern National Park

The Hohe Tauern National Park is the largest nature reserve in Central Europe and is located on the territory of Salzburg, Carinthia and Tyrol. There are 80,500 hectares of reserve in Salzburg, with a chain of Alpine Mountains that stretches across the area, as well as glaciers, valleys and waterfalls which can be found on the territory of The Hohe Tauern National Park. The highest cascading waterfall not only in Austria but in the whole of Europe – Krimml Waterfall – is situated here. Guests of the reserve can engage in mountaineering and mountain tourism. An excursion highway has been laid through the park for easy access.

Culture

Austria is a secular European state. Freedom of religion is legally enshrined in the country, and the personal and civil rights of all citizens are comprehensively protected.

In Salzburg, most of the residents are Roman Catholic. The federal land has a rich historical heritage and tradition, which are reflected in numerous sights, cuisine and the unique architecture of ancient cities. The city of Salzburg is not only the capital of the region, but also the birthplace of the composer Mozart. The town is considered the capital of art and culture and has been included in the UNESCO World Cultural Heritage List since 1997 as a city of "special value for humanity". Buildings of different centuries, including medieval burghers' houses and spacious squares in an Italian style, are located in Salzburg city.

Note: If you are planning a trip to Austria, we recommend that you read our selection of the best winter holiday destinations in Austria.

Economy

The federal state of Salzburg is one of the most dynamically developing regions in Europe. The economy here is focused on supporting small and medium-sized businesses, which is the key to a stable environment and economy. Salzburg has the lowest unemployment rate in the country at about 5%. On average in Austria, this figure is 7-8%.

The economy in the region of Salzburg consists of three-quarters of the service sector and one-quarter of industry. The advantageous location in the center of the European Union makes Salzburg an economic center for business operations from north to south and from west to east. The main part of exports of the federal-state comprises paper, timber and wood products and materials.

Many well-known Austrian and international companies have opened their headquarters in the Salzburg region, especially in its capital with the same name. Salzburg became the base for entering the market of the German-speaking region, as well as an ideal place for expanding its activities for many leading enterprises, among which we can mention Robert Bosch, BMW Group, Novartis, and many more. The main office of the Porsche automobile is also located here.

One of the main sources of income for the federal state is its tourism activities, especially those related to winter sports. Every third workplace in the state is directly or indirectly related to tourism. As mentioned earlier, about 7 million tourists visit the region of Salzburg every year. There are also well-established road and rail links in the state.

Over 80% of the Salzburg area is occupied in agriculture.

Dairy farming and cattle breeding are widely developed in the federal state, as horses are bred in the valley of the upper Salzach (Pinzgau), while fruit, rye and wheat are grown on the Alpine foreland.

The cost of real estate

According to the forecasts of the Austrian real estate market in 2022, Salzburg is considered one of the most expensive regions in Austria in terms of real estate value.

The main reason is the stable population growth with low construction rates, due to the geographical location of the region. Apartments in condominiums and single-family houses are in high demand in the cities of Salzburg.

The most expensive real estate transactions are made in large cities of the federal state, such as the capital Salzburg, Saint‑Johann-im‑Pongau and Hallein. The average price for the purchase of apartments in Salzburg (Stadt) can reach EUR 8,000 per sq. m and the average rental price of residences in the capital constitutes about EUR 16,45 per sq. m.

The highest house prices can be observed in the districts of Salzburg (Stadt) and Zell am See. The average house price in these areas constitutes EUR 7,000 per sq. m.

According to home-buying prices, the cheapest area of Salzburg is St. Johann im Pongau, where the average price here is EUR 3,300 per sq. m.

Why it is worth investing in real estate in Salzburg

The federal state of Salzburg has a high investment attractiveness, due to the moderate alpine climate, highly developed infrastructure of urban resorts and its stable growth in demand for real estate. First-class ski resorts attract a large number of tourists to Salzburg every year, and due to the well-developed tourism sector, renting out real estate is the main source of income for owners of apartments and houses. Moreover, the gradual increase in prices for property ensures a steady increase in demand for rented real estate. Because of the high cost per square meter, those wishing to settle in Salzburg are more likely to pay attention to more affordable rental housing.

The population growth is another advantage of purchasing real estate in Salzburg as the level of internal migration here is one of the most stable in the country. According to research, every year the number of people living on federal land rises by an average of 4,000. An increase of 5.1% in population is projected by 2025. This factor supports a high demand for both owned and rented housing.

The pace of construction in Salzburg is not generally high due to the geographical location of the region. The shortage of supply in the real estate market is compensated by an increase in the cost of housing. For example, single-family homes have risen in price by almost 90% over the past decade. According to property experts, the purchase of a residential building for its subsequent sale in the future will bring the owners a solid profit.

Note: Read this article to learn all about the process of buying property in Austria.

Several other reasons for the benefits of investing in local real estate are the low crime rates and the high standard of living, which will maintain consistently high prices for residential and commercial properties.

How Can We Help?

The specialists of Luxury Immobilien GmbH are ready to provide you with full assistance in the Salzburg real estate market and other federal states. We will help you to choose and buy a property for living or investment, according to your preferences.

We are ready to take care of all the questions concerning the analysis of the regional real estate market you are interested in, as well as preparing all the necessary documents for the transaction, provide legal advice and guarantee full support from A to Z. Applying to a licensed brokerage agency not only saves you money but also saves you time as we are able to answer any questions you may have about the market itself and the Austrian law.

In addition, our company is ready to assist you in matters such as the design or landscaping of your property, searching for residential or commercial properties to rent, help with financing the purchase of real estate, or obtaining a residence permit in Austria, as well as the organization of the move with the solution of all related issues.

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Evgeny Pilnikov,
CEO

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