Austria prices are only going up!!

Austria prices are only going up!!

On the famous Ski run, things are going downhill at breakneck speed, while real estate prices in Kitzbühel only know the other direction: things have been going uphill for many years.

The Corona crisis has not changed that. Quite the opposite. “At the beginning of the pandemic, I already played through a few scenarios in my head,” reports Florian Hofer, Managing Director of Engel & Völkers Tyrol.

However, the worst case scenario feared by some did not materialize. Since the summer of last year, demand has risen sharply: “You wouldn’t believe how much the run on real estate has picked up speed,” says Hofer.
Selling by phone

Prices in the high-end segment in the municipality have risen by another 20 percent, estimates Manfred Hagsteiner, managing director of the brokerage firm of the same name: “We had thought the ceiling had been reached, but it still hasn’t.”

Very expensive houses around up to 25 million euros had been on the market longer before Corona, “but they are going away now,” Hagsteiner tells. Even if he himself feels a little sorry that some of the new owners rarely show up in Kitzbühel: “It’s become a real investor’s market.”

Hagsteiner tells of plots of land for which 6000 euros per square meter are being paid. He has even sold some apartments and also houses for up to five million euros by phone in the midst of the first lockdown. On the one hand, as the broker suspects, out of fear that the property is otherwise gone. On the other hand in addition, because many had more time in the Lockdown to concern themselves with the real estates – and already times a beautiful dwelling for possible further Lockdowns to look for: “That was for many a large motivation.”

Second or third home

Florian Holzer from Engel & Völkers also observed something similar: “Many people thought about their life situation during Corona,” he says: about the job, the relationship and just also about the housing situation.

Something else is currently playing into the run on alpine luxury: “With a second or third home, you create an option for yourself.” Those who are in the extremely fortunate position of having a finca in Mallorca and a villa in Kitzbühel can choose – depending on the Corona situation in the respective country – where they would prefer to reside.

But anyone who wants to start looking for a domicile in Kitz now may need some patience: “We have few properties at the moment,” says Hofer. “And what comes in sells faster.” Those willing to buy know exactly what they want – “and that they want” when the perfect property is found, the price is paid for it.

But here, he says, it’s also up to the real estate agent and the broker to determine the right price for a property, “and no moon prices.” In the case of properties from the 1990s, where, in keeping with the style of the time, a lot of work was done with marble, there are often surprises for the owners, he said. “Not every property can be sold at the highest price just because it’s in Kitzbühel,” says the broker.

Air conditioning and alarm system

On the road in the small municipality are currently mainly willing buyers from the DACH region – not only from Germany, also from Switzerland, increasingly also from Vienna and Upper Austria – and from the Benelux countries, now and then Scandinavians. Most of them want detached houses in modern Alpine style, ideally with a view of the Horn or Kaiser, a bit of land – and a dedication as a leisure residence.

Today the technical equipment of the property is also important, reports Hagsteiner, the curtain must open electrically, an air conditioner is today standard, also into the alarm system one invests.
Arrival by private jet

Some wishes, however, cannot be fulfilled even in Kitzbühel with the best will in the world. “Relatively often, people want to be able to land on their property by helicopter,” Hagsteiner tells us. To quickly add: “That’s not possible here.” Instead, the airport in Innsbruck or a landing field in St. Johann must be approached, “but it is usually too small.” Many would also arrive by private jet.

Also to the inspection, to which often with lawyers and interior designers is approached. The property is, of course, closely scrutinized. Ultimately, however, even the purchase of a 15-million-euro villa is an emotional decision, the brokers emphasize. “But of course it also helps to see that the properties in Kitzbühel have not become worth less in recent years,” says Florian Hofer. So downhill is probably still only on the Streif.

Source Der Standard (Franziska Zoidl, 12.8.2021)

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