High demand for exclusive properties
of the future
The coronavirus pandemic has changed supply and demand in the luxury real estate market in Austria. More and more buyers are looking for properties in prime locations close to nature where they can find peace and relaxation. This has led to a rapid increase in demand for vacation homes and apartments in particular. Supply is very low, especially on lakes such as Lake Wörthersee.
More and more people want to spend their vacations in Austria. Germans in particular are increasingly attracted to neighboring Austria because of its beautiful landscape and easy accessibility. Thomas Hopfgartner, managing director of LIVING DELUXE Real Estate, has seen a significant increase in demand: “We normally receive around 50 enquiries from Germany per year for the purchase of the most beautiful properties in the best locations in Austria. We already had that many in the first quarter of 2020. “Many customers who would otherwise vacation in Capri, St. Tropez, or Sardinia and have their yacht moored there are now more attracted to Austria’s beautiful lakes. This also shows that completely different criteria have become important for many real estate buyers: accessibility, safety, and a good healthcare system have taken on new significance when deciding where to buy a villa, vacation home, or apartment..“
Real estate development and trends
The reasons for the high demand also lie in travel restrictions, which mean that owners with properties in the Mediterranean region, for example, are unable to use them for their vacations, or can only do so to a very limited extent. In addition, the pandemic has led to a longing for safe, stable investments—many people want to invest their money in beautiful, exclusive, and stable-value real estate. COVID-19 has increased people’s need for security, which in many cases has made hotels less appealing. Owning vacation homes close to home and in secluded locations allows for distance, privacy, seclusion, and independence: you can remain among yourselves from arrival to departure. “This trend will continue. Even when it is possible to travel without restrictions again, the need for security, nature, seclusion, and secluded locations will continue to drive the market for premium real estate,” predicts Hopfgartner. This is because the quality of living and vacationing has become even more important as people spend more time in their own homes or on their own property.
In order to meet this changing demand for premium real estate, experienced professionals are needed, such as Austria’s leading luxury real estate broker, LIVING DELUXE Real Estate. Austria is a small country, and in hotspots such as Kitzbühel or, above all, Lake Wörthersee, there are usually only a handful of properties for sale, if any. This is because demand for properties around Lake Wörthersee with private lake access has increased significantly due to the coronavirus crisis. “We have a lot of interested parties who want to fulfill their dream of living on Lake Wörthersee, but we can rarely meet their wishes. There are actually no properties available around Lake Wörthersee. Even if our customers are willing to pay up to 5,000 euros per day for vacation apartments, we cannot fulfill these wishes. Because there is no rental market on Lake Wörthersee,” explains Thomas Hopfgartner. The chances are better in a slightly larger radius around the lake, but even here, a view of the lake is desired. In addition to properties near the lake, higher-altitude properties in the mountains with magnificent views, such as those offered by Kitzbühel, are currently in high demand.
In addition to the location of the property and its geographical proximity or accessibility, buyers of vacation properties also value security, the healthcare system, and stable property values. Luxury properties are always investments that remain crisis-proof even in times of coronavirus. Prestige and infrastructure also play an important role: buyers of premium properties value proximity to lifestyle amenities, extensive shopping, exclusive gourmet restaurants, and sports facilities such as golf, horse riding, water sports, and skiing in winter. “Because all of this is possible here, Austria is currently the most attractive country for real estate buyers. And that naturally has an impact on real estate prices,” emphasizes Thomas Hopfgartner.
Report from March 2021