Price index WK Tirol

Real estate demand down, supply up by 25%

The real estate price index reflects the average prices achieved last year for various types of property in all of Austria's political districts. The one in Tyrol shows: The market is consolidating, but slowly. Demand slumped by 30 percent.

The introduction of the KIM Ordinance 2022 has put a considerable damper on the real estate market in Tyrol. Demand has fallen by around 30 percent. "This trend has continued in 2023 and demand has fallen slightly once again," reported Arno Wimmer, WK specialist group spokesperson for real estate, and Michael Kugler, professional group spokesperson for property developers.

There is indeed a market for used condominiums. These are mainly buyers who use the apartment themselves.

Arno Wimmer, Fachgruppe Immobilien- und Vermögenstreuhänder

Bild: Charly Lair

Fewer transactions
The supply of properties is showing the opposite trend, having risen by 25 percent. The result: "Compared to 2022, 19 percent fewer properties were sold overall and the sales volume fell by 23 percent. The decline is noticeable in all districts between 14 and 37 percent and for all property types. Compared to the peak year 2021, there was a 27.8 percent drop in the number of sales and a 28.6 percent drop in volume."

Second-hand 41 percent cheaper
Used condominiums are now on average €/m² 41% cheaper than new-build apartments. The market has almost come to a standstill here. The decline in sales figures is 58% compared to the previous year and 71% compared to 2021. "Investors are increasingly discovering alternative forms of investment and owner-occupiers are finding it difficult to obtain real estate financing," explain the experts. Average prices €/m² have risen slightly, but below inflation.