Salzburg: Apartments 16 percent more expensive
A new apartment in Salzburg costs an average of 6480 euros, existing 4616 euros per square meter. Price explosion also for building land: Land prices are up by 36 percent.
The Salzburg real estate market, which has been on the upswing for years anyway, picked up again last year with a substantial leap in price levels. This emerges from a detailed analysis of all transactions recorded in the land register of the Salzburg district court, which are carried out annually by the real estate agency Hölzl & Hübner and are exclusively available to the SN.
Strongly increased price level in 2021 on the Salzburg real estate market
Accordingly, the number of transactions increased by 16 percent to 3592. However, around 1,000 of these are parking and garage spaces, which have had to be separately identified since 2014. But even without these parking spaces, the number of transactions would have increased by six percent, says Wolfgang Maislinger from Hölzl & Hübner. Apartments (used and new) had the largest share with a total of 50 percent, the rest is distributed among parking lots, houses, land and commercial real estate.
Due to the high completion rate compared to 2020, new-build apartments have seen the strongest growth with a plus of 19 percent, while used apartments have increased by twelve percent. On the other hand, there were declines in the number of transactions for houses (minus 15 percent) and commercial real estate (minus 16 percent). “When it comes to commercial real estate, the demand is there, but there is not enough supply,” says Maislinger.
The changes in prices are even more serious. The total transaction volume at the Salzburg District Court increased by 19.5 percent in 2021. “Without the parking spaces, the price level is rising sharply here,” explains Maislinger. “The transaction volume for property sales has risen by 50 percent, 37 percent more money was spent on new apartments and 32.1 percent on existing apartments.” Of the total turnover, 50 percent is attributable to apartments, 20 percent to houses and
17 percent on commercial real estate.
Building land is a price driver
Price drivers were primarily the significant building land prices, which are increasing. The average price for building land (larger than 300 square meters, more than 300 euros purchase price per square meter) across all cadastral communities increased by around 36 percent per square meter to 1347 euros. In the high-price segment, there was a jump in price by 49 percent to 1830 euros. Even in the low-price segment, prices increased by 33 percent to 800 euros.
“The price development is even more evident in the building land prices in the city area,” emphasizes Maislinger. “On average, prices rose by 24 percent to 1527 euros and in the low-price segment by 53 percent to 1142 euros per square metre.” In the high-price segment you had to spend 1913 euros, which is an increase of 39 percent. “In the high-price segment in the city, four-digit square meter prices are normal and the best plots achieve prices of up to 3,500 euros and more,” says the expert.
The usual suspects in the high-price segment, such as Nonntal, Morzg, Aigen, but also Maxglan, Schallmoos and Leopoldskron, are differentiated according to districts or communities. Maislinger: “The leader is a demolition-ready building in Schallmoos with more than 3500 euros per square meter, followed by Nonntal with a sale of 2570 euros and Morzg with 2400 euros.”
Significant increases in apartment prices in Salzburg
Of course, this development is also followed by apartment prices, where there have been significant price increases. A total of 1,779 apartments were sold in the previous year (plus 14 percent), 530 new apartments (plus 85 objects) and 1,249 used apartments (plus 133). “The average prices rose significantly, both in the existing and the new housing market,” calculates Maislinger: “A new apartment cost 6480 euros on average in 2021, compared to 5605 the year before. This is a percentage increase of 15.6 percent. “In the case of existing apartments, there was a price increase of 12.4 percent from 4106 to 4616 euros. Remarkable: The statistics also include the new apartments built by non-profit organizations.
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Image: SN/bernhard schreglmann
Wolfgang Maislinger, Hölzl & Hübner
The city also stands out in terms of price: new apartments in inner-city locations now cost up to 20,000 euros (Rehrl-Platz) per square meter. Maislinger: “There are hardly any new apartments for less than 5,000 euros and if there are, then they are heavily subsidized or as building rights contracts.”
Existing apartments in the city of Salzburg cost 4000 euros,
if the stock is particularly good, this value rose to up to 8,000 euros. “Prices below 3000 euros are very rare and outliers are piling up,” says the expert. “There are no more home improvement bargains.”
The apartment purchase market only for the city of Salzburg shows the following picture: The average new building prices rose sharply and increased from 5796 to 7209 euros (plus 24.4 percent) on average. Existing apartments were twelve percent more expensive, the prices here are 4640 euros compared to 4149 in the previous year.
Single-family home market is shrinking
Detached houses are in demand, but the market is steadily shrinking, so prices are rising. In 2021, 263 houses including terraced houses and semi-detached houses were sold, which means a decrease of minus 17.3 percent. However, the average sales price rose again: In 2020, an average of around 866,000 euros had to be paid, so last year it was already an average of 1.03 million euros for a house. In the previous year, 89 houses were sold at prices of one million euros or more (34 percent).
Most of the high-priced sales in 2021 were found in Aigen and Morzg. For comparison: In 2020, sales prices of one million euros or more were paid for 68 properties in 318 house sales (21.4 percent).
Since 1986 (underlying value: 100), Hölzl & Hübner have been compiling the Salzburg Real Estate Index SIX from the land registry data. It is calculated from the number of sales contracts, the transaction volume, the average building land prices and the average prices for new and used apartments. For 2021, the SIX gives a value of 846 points, which is an increase of 20 percent compared to 2020. Ten years ago, the value was around 400 points, i.e. half.