When you think of the Austrian alps, what comes to mind? The Austrian alps is a holiday destination for many, but for investors, it is an investment haven. Austria’s economy thrives in is robust tourism. Tourism is one of the reasons why foreigners can buy property in the country. Foreigners are free to take part in the Austrian alps property market if that particular property can be made available as rental properties.
This mandate has reduced the presence of ghost towns that usually distinguished French ski resorts where most wealthy owners would leave the property empty for most of the year.
The Austrian alps property market edges out other alpine markets because of its affordability and the balanced supply. In the past years, Austrian tourism posted stable growth amid the recession. Due to this, the real estate market remained steady as well.
Reinventing Ski Resorts
Another advantage of Austrian alps from other ski resorts is the thrust to create a holiday destination for all seasons. If the snow attracts tourists, revenues are expected to double if they can attract tourists even during summer. According to Savills World Research, the impending climate change should be enough for Austrian alps property owners to consider offering their properties during summer. They have to find effective ways to convince people that ski towns and villages can offer them much more than snow.
For one, the Alpine terrain is perfect for biking and hiking. Ski resorts can organise events to get the word out there and attract a new generation of tourists year-round.
Increasing Trends Fuelled By Tourism
As more ski resorts make themselves available for the whole year, tourists will undoubtedly flock to the country. As a result, there will be an increase in the demand for property. When this happens, higher yields are possible. The Alpine market’s well capitalised local banking that offers lower interest rates will also bring in more international investors willing to seek stable blue-chip economies.
Since the third quarter of 2018, the Austrian housing prices continue on an upward trend along with a robust economic growth posting a 7.97% increase. Based on the figures released by the Oesterreichische Nationalbank (OeNB), the regional Austrian property market rose by 2.83% in the third quarter of 2018.
The Austrian alps property market sees higher demand for newly built apartments, mainly from foreign investors from Russia and Ukraine. While rental yields are low to moderate at only 1.72% to 2.33%, residential rents are rising.
In the Austrian alps, the Kitzbühel is among the top-five sports for the most luxurious Alpine vacation spot. Since 2013, property prices in the area rose by as much as 20%.
The Austrian alps property market will see prices rise soon since there is a strong demand for rental properties as the area gears for welcoming more tourists. Foreign investors, which currently takes 40% of the market, will have profitable gains by renting out their properties all year round and paying lower interest rates for the said properties.