Where is the trend heading?
Has the price ceiling for real estate in the Kitzbühel region been reached?
In order to venture a glance into the crystal ball, we gathered wide-ranging materials and data on the “core region of Kitzbühel,” subsequently evaluated the data, then analysed the results. We did not include the so-called share deals.
Since 2010, the sum of all purchases of building lots, apartments and houses has fluctuated between 520 and 720 per year.
On the other side of the ledger, the accumulated volume of transactions in the same period has risen continually from approximately € 270 mio. to nearly € 700 mio. (forecast for 2017). Thus, the year 2017 is poised to set a new record, since the transactions already had reached € 350 mio. by August.
Average purchase price is rising. Villas are becoming more expensive
The higher revenues per purchase is the conspicuous number, which means the individual transactions are getting more expensive. In fact, we see a massive increase in average purchase price per transaction. Whereas the average purchase price in top-ranking year 2012 was just under € 650,000 the average price this year will exceed a million euros. That means prices have doubled since 2010.
The city is earning, too.
In the period between 2010 and 2017, real estate revenues in the core region of Kitzbühel totaled approximately € 2.8 billion. That generated a property tax (3.5 %) and property register fees (1.1 %) of over € 125 million. And that does not include the other taxes and fees relevant to real estate purchases; even less does it include the multiplier effect and indirect returns which are generated. The Kitzbühel real estate market is thus a worthy wellspring for public authorities.
The Kitzbühel real estate market thus remains quite exciting. Furthermore, it permits sanguine hopes for the future.
Dr. Christian Neumayr MRICS
Member of the Royal Institution of Chartered Surveyors
Immobilientreuhänder und Gerichtssachverständiger
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