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The Austrian Alps

Property Report & Investment Insights

Views from The Forest Village Chalets, Neukirchen

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Contents

1 Evolving Trends in Ski Resorts

We take a look at how the European ski market will continue to evolve in the 2018/2019 season. We consider the main

factors affecting the market and reflect on how Austria’s ski resorts are adapting to changes better than others.

3 The Alpine Property MarketWith continual growth in the ski industry, the Alpine property market is rising from strength to strength. In this section,

we consider how a mountain home is becoming more than a luxury lifestyle choice, but also a smart investment, and

which resorts will be the most prosperous in the 2018/2019 ski season.

4 Spotlight: AustriaAustria represents the newest Alpine property market in Europe and here we take a closer look at the ski market and

factors contributing to its success.

7 Expert Opinion: Jessica Delaney We ask Jessica Delaney, Director of Alpine Marketing, for her take on the future outlook of the market, reflecting on Brexit,

and the investment potential of an Austrian property.

9 Investment Hot Tips Whether your focus is on ski and snow or summer use, if you are looking for up & coming ski resorts, or for somewhere

more established, we have rounded up our top investment tips for the 2018/2019 ski season.

11 Future OutlookIn this section, we summarise some of the key take away facts and forecasts for the 2018/2019 ski season considered

throughout this report.

Evolving Trends in Ski ResortsAustrian ski resorts are continuously investing in their infrastructure to adapt to the modern-day market of today’s skiers

Ski Market Overview

The European Alps hold the largest ski market on the planet, attracting almost 45% of all worldwide skiers. It is also the most intensely equipped region in the ski industry, hosting 80% of the world’s major ski resorts, over 10,000 modern ski lifts, and covering a 200,000 square kilometer area of icy peaks and snow covered pistes.

Whilst the Alps’ ski market is continuing to grow in terms of overall visits, the region is experiencing shifts in the distribution of these visits, as some ski resorts rise and fall in popularity.

According to the 2018 International Report on Snow and Mountain Tourism, France has seen skier visits fall by 2% since last season, and Switzerland saw its third consecutive annual decline in visits of 1.9% f rom the prior year and is now 10.2% below the f ive-year average. These skier visits are transferring to Austrian ski resorts, which saw a 4.4% increase in visits and a 5-year rising trend. The ski resorts adapting to swings in the demands of consumers and rising to the challenges presented in the modern-day ski market are experiencing the most success and are securing growth.

Improvements in Inf rastructure

Modern skiers have higher expectations when it comes to snow reliability, build-quality of accommodation, and the range of facilities available within a resort. European ski resorts

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Resorts that continue to invest in their soft-ski and

summer infrastructure outperform others.

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Only Austria and France have more than 10 resorts that generate over 1 million skier visits per season.

Most Austrian resorts are naturally dual-season because the villages tend to be well placed at an altitude of around 1,000m so they enjoy warm summers with green lush pastures, yet giving direct access to high altitude snow-sure skiing. This is ideal for the baby boomer generation, and as such resorts like Zell am See and Saalbach-Hinterglemm-Fieberbrunn have consequently seen rising popularity. Austrian resorts host a variety of both ski, and soft-ski activities (such as ice-skating, tobogganing, snow polo, and much more) as well as summer activities (like sailing, hiking, cycling, paragliding, riding, e-bikes and more).

Generation Y

Generation Y (20-35-year olds) are clipping into their skis and having a positive effect on the ski industry, increasing visitor numbers. This younger generation are particularly attracted to up and coming Alpine resorts which put an emphasis on modern facilities, social events, and affordability. Austrian ski resorts offering excellent value for money and a range of activities, like Neukirchen, are enjoying 9.5% visit increases f rom last year.

Number of ski resorts with more than 1m skier visits

focusing on inf rastructure improvements are staying ahead of the game and the declining visits to Swiss and French ski resorts are due to limited investment in snow-making facilities, modern ski lifts, and resort connections.

Austrian ski resorts undeniably showcase the most modern lift inf rastructure in the ski industry, having invested over 7 billion euros since 2000. Austrian lift operators will continue to invest heavily into their facilities in 2018/2019, and some resorts even boast luxurious equipment, such as heated chairlifts and gondolas, Wi-Fi on the slopes, and advanced snowmaking facilities. Over 60% of Austrian ski slopes have snow canon coverage, and a yearly average of 130m euros has been invested in snowmaking here since 2008.

Austria now accounts for the greatest number of ‘very large’ ski resorts, overtaking France, which previously held the title.

Soft-Ski and Summer Activities

The large baby boomer generation is now at the upper end of the skier demographic, and almost 25% of annual visitors to the Alps are non-skiers. As such, the ski resorts investing heavily into soft-ski (non-skiing activities), and summer facilities are reaping the rewards of growth in visits f rom this demographic.

Many of the more traditional resorts in Switzerland and purpose-built winter resorts in France are missing out on visits, due to the lack of soft-ski and summer activities available. As a result, dual-season resorts like Chamonix and Villars are on the rise.

The Alpine Property MarketWith the Alpine ski industry’s continual growth, purchasing a mountain home is becoming more than a luxury lifestyle choice, it’s also a smart investment

The Alpine Property Market Overview

Situated within only a few hours travel of many well-connected international airports and large European hubs, the Alps boast a superb holiday home property market that is within easy reach. Each Alpine country, as well as each ski resort within them, have their own characteristics and range of facilities on offer. Property prices and trends vary significantly between them.

Switzerland holds the most expensive ski resorts in the Alps, with property prices exceeding 20,000 euros per m2 in St Moritz, for example, and high costs of living to match. New-build ski property is unavailable in Swiss resorts due to planning restrictions such as the introduction of the second home cap, Lex Weber, in 2012. Available properties tend to be outdated in style. As such, the latest figures register a 5% fall in average Swiss ski property prices over the last 12-month period.

According to the latest data, French ski resorts have seen a turn-around from the declining property prices seen over recent years and in fact saw an average growth of around 1% in 2017. Dual-season resorts like Chamonix are leading the growth. However, France’s purpose-built winter resorts are declining in popularity due to the lack of soft-ski options sought by today’s skiing demographic, which is in turn affecting property values in these high-altitude resorts.

Austrian ski property still presents a strong and growing market for foreign investment, with lower property prices than French and Swiss equivalents, enabling buyers to gain more for their money. Austrian property prices have experienced recurring growth in value every year, and some up-and-coming resorts have seen capital appreciation of 5% per annum.

Average property price per m2

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Growth in the Austrian Alpine Property Market

Of all the Alpine countries, the holiday home property market is still emerging in Austria and has plenty of space to grow. Entry level property prices are lower than comparative homes available in France and Switzerland, but are increasing steadily year-on-year. For example, it is easy to find beautiful 2-bedroom apartments in ski-in-ski-out locations starting from just 300,000 euros in Austria. This will not be the case for long, as demand for Alpine property is growing and their prices are rising quickly.

On top of this, we have also seen a 14% increase on the average buyer’s budget across the last 12 months, as high net worth individuals with bigger budgets are beginning to move towards Austria to invest in ski property.

Spotlight: Austria

Over the past 15 years, property prices in

Austria have increased by an average of 4%

per year

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Dual-Seasonality, Authenticity, and Greater ROI

Austria’s year-round appeal plays a large role in the growing success of its holiday home market. Alpine property in Austria benefits from two high seasons per year, due to the country’s favourable altitude. Winters in Austria are cold and snowy, with resorts such as Warth holding the title for “The Snowiest Village in the Alps’ (thanks to its average of 11m snowfall per year), but also enjoy brilliantly warm summers.

Ski resorts like Zell am See or Annenheim are actually equally popular in the summer months, boasting beautiful warm lakes, perfect for swimming and sailing.

In turn, almost all of Austrian ski resorts are authentic villages, and are home to locals 365 days per year, and as such, never close. This is not the case across the Alps – in France most ski resorts are ‘purpose-built’, and close for the large periods of the year.

The dual-seasonality and authenticity of Austrian ski resorts has been key to the continued growth in their property markets.

A savvy investor knows that greater numbers of tourists means fewer empty periods, higher returns, and ultimately a more attractive asset.

The Rising Popularity of Rental Investment Properties

More than ever, buyers are looking for a smart investment property which will provide a rental income to cover the costs of their property and also make a profit: in 2017/2018, we saw an 124% increase in investment focussed property purchases.

Property owners in Austrian resorts are seeing excellent returns on their investment. Aside from the capital appreciation of their asset, owners take home a fantastic income from rental guests, who enjoy visiting in all seasons of the year.

Ski property in Austria offers the best value for

money in the Alps

The Alpine summer market is thriving in

Austria

Rental investment potential is now a key

requirement

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Growing Market

Skiing as a leisure pursuit has seen a widening base of enthusiasts. In recent years, we have seen growing numbers of buyers from Eastern European countries, such as Czech Republic, Hungary, and Slovenia, in addition to Central European buyers. On top of this, we have seen an increase in purchases from European expats living in Asia and the UAE. Levels of property transactions in Austria saw a 135% increase from the previous season, and we expect the 2018/2019 ski season to see higher levels of transactions again.

More than just a trophy asset

Data from our sales network shows that most Alpine property investors no longer want to leave their ski homes empty during the year, only to be used for a couple of weeks holidays. Today, even at the super-prime level, we are seeing buyers keen to rent their Alpine properties in order to make a profit. Ski properties in resorts such as Obergurgl or Fieberbrunn see fantastic returns on investment, with some properties offering guaranteed rental returns.

In Austria, demand for Alpine investment properties is further boosted by government incentives, such as a VAT rebate of up to 20% of the purchase price of new build homes. Owners are eligible for this rebate in return for making their property available to rent.

Property transactions in Austria were 135% higher in 2017/2018 than in 2016/2017

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Increase in Rental Investment Properties Sold in Austria

We ask Jessica Delaney, Managing Director of Alpine Marketing, for her take on the future outlook of the market.

Will the value of my ski property appreciate?

So far, we have seen a steady increase in the price of ski property over the past 15 years, with prices on average increasing by 4% per year, and some ski resorts achieving even higher levels than this.

What sort of rental income can I achieve on my investment?

Owners can usually expect rental returns in the region of 3% - 5% based on the net purchase price after running costs have been deducted. Buying a property in Austria makes a wonderful investment. It is a great lifestyle acquisition, providing fun for the whole family in both summertime and winter. It’s also a lot more fun than investing in stocks or shares!

What types of ski properties are most popular?

Bigger is always better for ski property, as people like to visit in groups. We find that 2 to 3-bedroom apartments and chalets are the most popular amongst our buyers. This size of property works well for families and is popular amongst rental guests, ensuring a great rental investment. Fully-managed properties, with spa facilities, restaurant, and concierge services, are also extremely popular. Ski property owners and their guests like to feel pampered after a day on the slopes!

Expert Opinion: Jessica Delaney

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Mountains, rather than beaches, continue to stay en vogue in 2018/2019, as active lifestyles take the

centre stage.

What season are property buyers most interested in? 2017/2018

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Has Austrian ski property been a good long-term investment?

Absolutely. We have seen consistent growth in property values across Austrian ski resorts, and properties have achieved wonderful rental incomes. Almost all of our buyers rent out to create an income, and use the home themselves for around 4/5 weeks per year. We have buyers who have come back to purchase further properties through us as they have been so happy with their investment.

What is the outlook for investing in Austria?

From what we can see of the market over the last 15 years, it has never been a better time to invest. Whilst the planning permission regulations are tightening up, the quality of available properties is exceptionally good. As such, demand is higher than ever before. Property prices are dictated by supply and demand, so we are seeing a rise in prices in Austria because of this.

InvestmentHot Tips

Best for All-round Winter and Summer Fun

Zell am See-Kaprun leads the way when it comes to a perfect dual-season Alpine resort. With plentiful infrastructure investments occurring every year, this ski region continues to grow and improve. Boasting over 138km of slopes and its own glacier for high-altitude and year-round skiing, this resort is one of the best for winter fun. There are lots of activities available for non-skiers too, including boutique shopping, snow-walking, ice-skating, and much more. In the summer, Zell am See-Kaprun is most famous for its crystal-clear lake, perfect for sailing and swimming. On top of this, there are hundreds of hiking and cycling trails to explore in the surrounding mountains. Property here make wonderful investments and secure brilliant year-round rental incomes.

Best for Ski and Snow Lovers

When it comes to snow-surety and high-altitude skiing, Obergurgl is impossible to beat. This picture-perfect Austrian resort is a genuine mountain village sitting at 1,900m above sea level, where locals live all year-round. This resort boasts one of the longest ski seasons in Austria, starting in mid-November and stretching right through until the end of April. With high room-rates all through the long winter in this exclusively high-end ski resort, properties here make fantastic rental investment opportunities.

Best Value for Ski-in-Ski-out

If you are looking for the best value ski-in ski-out property in Austria, then look no further than Katschberg. Here, it is possible to buy a 2-bedroom apartment directly on the ski slopes for around 4,000 euros/m2.

With 70km of varied slopes and plenty of activities on offer, property in this resort is perfect for families looking to invest in a mountain hideaway.

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When it comes to deciding where to invest, a good starting place is to consider what would best suit your family’s requirements.

Best Up and Coming Resorts

Neukirchen is a fairy-tale Alpine village where property makes a fantastic investment opportunity. For less than 900,000 euros, you can buy your very own built-to-order ski chalet, complete with 4-bedrooms, private sauna, and outdoor firepit. Neukirchen is a top family-pick, with excellent ski schools and beginners’ slopes for little skiers.

If you are looking to invest in a first-class ski resort like Ischgl, but without the premium price tag, Kappl could be perfect for you. Only 8-minutes’ drive from Ischgl this beautiful village offers backdoor access to Ischgl’s glitz, glamour and 239km of pistes. Kappl also has its own ski region of 40km, which is perfect for families. On top of this, an upcoming connection between the village and St Anton has been rumoured and could take place in the future...

Best Super-Prime Resorts

When it comes to a luxurious investment in a super-prime ski resort, Lech is the place to be. This historic resort is a firm favourite amongst Europe’s royal families and celebrities alike, and property is extremely rare to find here. As such, prices are often around 18,000 euros/m2. A 4-bedroom apartment will set you back over 4m euros (if you can find one), but you can rest assured that property prices are continuing to climb.

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Alpine Marketing have specialised in offering the best services and advice in the ski property industry for over 15 years, and are based in London and The Hague. We have the largest portfolio of new build property, and work closely with all the top developers, to provide a specialist service in assisting buyers throughout the purchasing process.

We offer a complete service to ensure that your transaction is smooth one - from your f irst questions and trip to Austria, through to the hand-over of your keys. We coordinate all of your viewings and appointments, facilitate your mortgage application with the bank, put you in touch with tax advisors, lawyers, interior designers, and much more. Our comprehensive service goes above and beyond that of our competitor’s and covers everything you need to know when buying your own ski property.

We are 100% independent as we do not develop properties ourselves, and our services to you are free as we do not charge a buyer’s fee.

Enquiries@alpinemarketing.comTel: +44 (0)207 935 5132

Expert Advice

Future TrendsEver Improving The winter sports industry is constantly evolving and the ski resorts which improve and adapt to the changing times will outperform others. Investment in ski infrastructure, and summer facilities is more important than ever.

A Hard-Working AssetRental investment properties are continuing to grow in popularity and will experience the most demand in 2018/2019. Property investors are looking for more than a lifestyle acquisition, but an income stream too.

Growing Market With higher levels of property transactions than ever before and a widening market of international buyers from a broader range of countries, we expect to see a higher level of sales in 2018/2019 than 2017/2018.

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Disclaimer: Alpine Marketing make all reasonable efforts to ensure the accuracy and reliability of the information contained in all brochures and the company website but are reliant upon information provided by third parties. Alpine Marketing, its employees and representatives will not be responsible for any loss, however arising, from the use of, or reliance upon this information. Employees of Alpine Marketing and other representatives have no authority to make or give any representations or warranties in relation to any property. All areas, measurements and distances are approximate. The text, photographs, illustrations and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents or that Alpine Markeitng have tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. The sales particulars and the company website do not form part of any offer or contract and must not be relied upon as statements or representations of fact. The sales deed prepared by the local Notary will contain all the terms of the sale and no warranty or representation made by another person which is not specifically included in the deed of sale is legally enforceable. © Alpine Marketing 2015 Registered Office: 6 Bentinck House, Bulstrode Street, London W1U 2JF, Registered in England. No. 06423236

Alpine Marketing

Ski Property Specialists