Austria has become the new hotspot for real estate investments. The much loved country for both summer and winter getaways has seen an increase in sales to foreign buyers.
Italians have proven to form a large part of the number of foreign buyers, the majority coming from Alto Adige, on the border of Austria. A more attractive location for investing considering the critical economic situation in Italy. Buyers are particularly interested in the North Tyrol and the western regions of the Austrian state. The phenomenon was recently analyzed and examined by one of Austria’s most influential tabloids Tiroler Tageszeitung.
A journalist from the Tyrolean newspaper interviewed Hannes Gschwentner, vice president of Tyrol, who explained that thanks to the foreign investments, real estate prices in the region have greatly increased in the past number of months. In some cases by an impressive 30%, on the bright side this has subsequently lead to an economic flow within the country. On the other hand, there is always the underlying concern of the risk of a property bubble.
The main principals that have encouraged citizens from Alto Adige to purchase in this corner of Austria are the great number of public services available for citizens at reasonable costs, the extremely high standard of living on offer, favorable tax regime, and a similar environment to Alto Adige is found here.
The difference in prices is remarkable, if a high-end apartment in Trento Alto Adige, in Val Badia has an average cost of 12 thousand euro per square meter, an apartment of a similar standard in a location just as desirable costs a third, around 4 thousand euro per square meter. In addition, luxury real estate in Austria is much more appealing for neighboring Italians in order to escape the risk of further taxation in Italy.