Famed for its scenic landscapes and charming folk traditions, Tyrol is the third largest state and fifth largest by population in the Republic of Austria.

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Buying property in the federal state of Tyrol

Famed for its scenic landscapes and charming folk traditions, Tyrol is the third largest state and fifth largest by population in the Republic of Austria. Back in the day, the region was home to the Habsburg dynasty, which is one of the most powerful in the world, and at present it features some of the costliest properties in the country. Surrounded by the Austrian Alps, Tyrol also features a range of premium ski resorts, including the highly sought-after Kitzbuhel, making it one of the most popular areas in terms of real estate investment among wealthy overseas investors. Below, we will take a look at the main driving forces behind the economic appeal of Tyrol, including its economy, attractions, property prices and more.

Defining Features

Tyrol has the longest external border and the smallest permanently populated area out of all 9 Austrian provinces.

With only 11% of the total area suitable for permanent settlement. It is bounded by Germany on the north, by Salzburg and Carinthia on the east, Vorarlberg is on the west, and Italy sits in the south. According to Statistik Austria, as of 2021, the total population in this province has reached 760,105 inhabitants.

NBD! Further in the article, we will review the federal provinces in Austria.

Tyrol has the longest external border and the smallest permanently populated area out of all 9 Austrian provinces

With only 11% of the total area suitable for permanent settlement. It is bounded by Germany on the north, by Salzburg and Carinthia on the east, Vorarlberg is on the west, and Italy sits in the south. According to Statistik Austria, as of 2021, the total population in this province has reached 760,105 inhabitants.

The capital of Tyrol

Innsbruck is a university, research and industrial hub, with a range of locally-based colleges and universities, including the oldest grammar school in Western Austria; Academisches Gymnasium Innsbruck, the University of Innsbruck, the Innsbruck Medical University and MCI Management Center Innsbruck, which is the university of applied sciences.

Note: You can acquire more information regarding the top Austrian universities in this article.

Population 130,000

As of 2021, Innsbruck has 130,000 residents, with students accounting for about a quarter of its total population. Furthermore, this city houses the headquarters of SOS Children’s Villages, which is one of the largest charities in the world, and MED-EL, who is one of the biggest producers of cochlear implants, among other global organizations.

Attractions

Tyrol is rightfully considered the number one tourist destination in Austria, especially in winter, since more than half of its area is dominated by woodland and alpine pasture, including the North Limestone Alps, the Tyrolean Schist Alps and the Tux Alps. And of course, there is the Hohen Tauern chain, with the country’s highest mountain and The Großglockner (3,798 m), which is nestled between East Tyrol and Carinthia. Below, we will review the top famous attractions in Tyrol:

Schloss Ambras

Schloss Ambras in Innsbruck was formerly a fortress, until in 1564 Archduke Ferdinand II, the then ruler of Tyrol purchased it and transformed it into a Renaissance palace. The focal point of the stunning landmark is the Spanische Saal (Spanish Hall), a 43-meter long banquet hall with a wooden inlaid ceiling and portraits of Tyrolean nobles. There is also the Kunst und Wunderkammer (Art and Curiosity Cabinet), which houses gravity-defying stilt shoes and a petrified shark, among other surprising exhibits

Hofburg

Hofburg, also situated in Innsbruck, boasts a pearly white façade and was originally built as a castle for Archduke Sigmund the Rick in the 15th century. Later on, in the 16th century, the landmark was expanded by the Emperor Maximilian I and finally, in the 18th century, Empress Maria Theresia gave a baroque makeover to Hofburg. The 31-meter long Riesenaal (Giants Hall) is the centerpiece of the exquisite rococo state apartments.

Swarovski Kristallwelten

Swarovski Kristallwelten first opened back in 1995 and since then it has become a flagship attraction of Austria. It is not surprising, since the museum treats its visitors to the Crystal Cloud, embellished with a total of 800,000 crystals, a mirror-like pool, a crystalline-themed playground, a tower, and a labyrinth for children. Furthermore, the Chambers of Wonder is where a crystal tree winterscape by Alexander McQueen called Silent Light, the Eden crystal forest and a modernist architectural piece by Lee Bul can be found.

Goldenes Dachl

Goldenes Dachl is one of the most distinctive landmarks in Innsbruck, with its astonishing murals and glittering 2,657 fire-gilt copper tiles. Built for the Holy Roman Emperor Maximilian (1459-1519), Goldenes Dachl is certainly an impressive sight from the exterior, however, it is also worth visiting the museum itself, especially with the Innsbruck Card, and an audio guide. Among the multiple exhibits are grotesque tournament helmets designed to resemble the Turks of the Ottoman Empire.

Stubai Glacier

Stubai Glacier is a year-round skiing destination, serving as a magnet for both locals and tourists. With over 100 km of wide, snow-pure pistes, which is perfect for intermediate skiing and cruising. Summer skiing here is also an option, but is restricted to between 2,900 m and 3,300 m. The Stubai Glacier features a network of trails down in the valley with a scenic view.

Culture

With its rich cultural history, Tyrol prides itself on customs, traditions and social values preserved and passed onto future generations. It is known as the festival capital of Austria, with multiple parades taking place on a regular basis, such as Imst Schemenlaufen Parade, representing the transition from a boy to a man, Nassereith parades as a farewell to winter, and Schleicherlaufen, which is a unique and ancient custom, among other joyful events.

Once a year, the Almabtrieb Celebrations take place, where the cows, horses and goats parade around, wearing unforgettable costumes and floral headdresses. Not forgetting a cattle drive in Reith, which features a big festival with live bands and plenty of local cuisine.

Tyrol is famed worldwide for its lavish arts festivals, such as Innsbruck's Summer Dance Festival, Festival of Early Music, Klangspuren in Schwaz and "Music in the Giant" at Swarovski Kristallwelten.

Economy

One of the most thriving regions in the EU

Tyrol is home to many large manufacturing companies, knowledge-based and business-oriented service providers, transport and retail companies, as well as its full public service offering.

All this gives Tyrol a strong economic base, which minimizes any fluctuations. In particular, industrial companies account for 1/3 of the net product of Tyrol, whereas the SMEs, trades and other services follow the lead.

In order to support business development, the federal province provides a range of programmes and stimulus packages with a focus on R&D and innovation, business start-ups and relocation, maintenance of local infrastructure, access to new markets and others. Annually, Tyrol spends about EUR 154M to create beneficial conditions for local business development.

NBD! Before setting up a business in Tyrol, it is essential to get acquainted with the nuances of the elaborate Austrian tax system.

Property Prices

According to the Local, although Tyrol is the region with the second-lowest average salary in Austria (EUR 27,312), it has some of the most expensive real estate in Austria. With that in mind, in 2020, the average price per sq. m nationwide amounted to EUR 4,831 for an apartment and EUR 3,360 for a house. However, the province of Tyrol registered the highest average price for an apartment at EUR 5,504, which was 14% above the average, and ahead of Vienna at EUR 5,340.

As of Q1 2022, the average asking price per sq. m for an apartment in Tyrol is EUR 7,685, as reported by Immopreise, which continues to beat Vienna with EUR 7,555. Moreover, houses in Tyrol are known to be rather expensive, for instance, in Kitzbuhel, one of the most sought-after areas of the region, the average cost per sq.m is a whopping EUR 16,159.

This surge in the local real estate value is attributed to the location of Tyrol in the Alps, which offers a lifestyle that appeals to many people, with skiing in winter and lakeside sunbathing in summer. In fact, this region is a very popular destination for the acquisition of second homes among international property buyers. Amidst the pandemic, many professionals have the ability to work remotely and opt to invest in a home set in the mountains.

Since the increasing property prices are mainly driven by overseas purchasers and second-home owners, Tyrol has tried to establish rules to preserve properties for locals as well.

That being said, in October 2021, new laws were introduced to prohibit the construction of new holiday homes in communities where there are no budget-friendly apartments or inexpensive land. There are already certain regulations that have been in place since 1994, stating that holiday homes in the district cannot exceed 8% of the total stock, nevertheless, Kitzbuhel has not been monitored properly, with about 10,000 illegal residences, meaning that owners seldom stay there despite claiming the property as their main or secondary residence.

Why Invest in Tyrol Real Estate

Throughout 2022, it is expected that a demand for more country properties, especially large family homes, enabling individuals to work from home will continue to rise, further driving property prices up in regions such as Tyrol. There also seems to be an undersupply of luxury chalets in the top resorts, including the previously mentioned Kitzbuhel, which means there is a lot of competition going on among real estate buyers so the response has to be quick.

Other key features of the economic appeal of Tyrol are as follows:

Tyrol boasts excellent road, rail and air connections

With the Salzburg-Tyrol railway, which is the main railway in Austria, and an array of airports, including Innsbruck Airport, Kufstein-Langkampfen Airport, Lienz Airport, Schwaz Heliport and more. On top of that, by 2032the Brenner Base Tunnel is scheduled for completion, which will run from near Innsbruck to Fortezza in Italy, becoming the second-longest railway tunnel in the world.

Tiroler Bodenfonds

In Tyrol you can find the Tiroler Bodenfonds (the Tyrolean Land Fund) which aims to provide people and the business community with access to residential and commercial land plots under beneficial conditions in order to create and secure jobs in the region, as well as supporting businesses. In 2021, the Tiroler Bodenfonds acquired a further 10 hectares of land, tripling the available stock.

Affordable residences at ski resorts

Houses in prime ski resorts in Tyrol are more affordable (Kitzbuhel - EUR 16,159 per sq. m) when compared to those in France and Switzerland. With that in mind, in 2021, in Courchevel 1850, the average price per sq. m for a house reached EUR 20,100, whereas Val D’Isere and St. Moritz registered an average cost of EUR 19,300 per sq. m and EUR 17,400 per sq. m respectively, as reported by Savills Global Prime Price League.

Tourist area

Taking into account the previously mentioned attractions and a range of activities available, it is not surprising that Tyrol witnesses about 5 million visitors every year, which, in turn, generates a spike in demand for short-term rentals.

Optimal geographic location

Tyrol has an optimal geographic location, set in the midst of 3 strong metropolitan European cities, including Munich, Zurich and Milan, which facilitates conducting business and traveling around Europe.

Luxury Immobilien GmbH is one of the leading real estate agencies in Austria, with an expansive portfolio of prime holiday homes, apartments in central locations and luxury mansions across the entire country.

Our company is a licensed broker for many of the largest developers in Austria, and therefore has access to the best promotions and offers when it comes to property acquisition, residential or commercial real estate for living, investing, or doing business.

Our highly qualified specialists will take care of all the details, including the analysis of the real estate market to determine its potential future income, search for the property, provide legal advice, and give full support at all stages of the transaction, guaranteeing maximum transparency and safety under Austrian law.

Our company will also help you not only to buy, rent, lease or sell a property, but we are also ready to provide our services to design the property, assist in obtaining a residence permit, the organization of the move and solve all related issues to buying, renting or selling a property.

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Evgeny Pilnikov,
CEO

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