Mar 28th 2025 Housing in Tyrol 2025: fewer new builds, new opportunities

According to WKO Tirol, around 7,100 new residential units were realised in a total of 331 projects between 2023 and 2025 - a strong figure. However, the study predicts that only around 2,150 new flats will be built in 2025. Particularly affected: the owner-occupied segment, which is under severe pressure due to rising construction costs, stricter regulations and changing financing conditions.

What is behind the decline?

There are many reasons for the decline in construction activity:

• Rising interest rates have made lending much more difficult.
• Construction costs and property prices remain at a high level.
• Regulatory requirements, for example in relation to energy efficiency and sustainability, are increasing planning and realisation costs.
• Delayed approvals at municipal level and increasing requirements are placing an additional burden on smaller property developers.

All of these factors mean that many projects are either postponed or not started at all.

What does this mean for prospective buyers?

Fewer new builds inevitably means that the supply of modern, energy-efficient properties is becoming scarcer. Anyone currently thinking about buying a condominium or house in Tyrol should therefore not hesitate too long. Flats in locations close to the city centre such as Innsbruck, Kufstein or Hall and in tourist regions such as Kitzbühel, Seefeld or the Zillertal remain in particularly high demand.

Tip from Tirol Real Estate:

Seek advice on planned projects at an early stage and secure favoured units during the construction phase - this reduces competition and allows you to plan ahead.

While the decline in supply poses a challenge for buyers, it opens up new prospects for investors:

• Rising rents due to a shortage of housing are increasing the opportunities for returns.
• Holiday properties and tourist investments are becoming even more attractive.
• New micro-locations with development potential are emerging in fast-growing communities, away from the classic hotspots.

We at Tirol Real Estate are observing this: Modern properties with energy efficiency, good digital infrastructure and flexible utilisation options (e.g. home office space) are attracting particularly strong interest.

Alternative trends: refurbishment instead of new construction

An interesting side aspect of the current trend is that the focus is increasingly shifting from new builds to existing properties.

With the decline in new builds, refurbishments and revitalisations of existing properties are coming to the fore. This is not just about traditional monument protection, but also about energy optimisation that improves both living comfort and sustainability.

Federal and state funding programmes support such measures, which also makes them attractive for private owners and smaller project developers.

2025 will not be an easy year for new construction in Tyrol. However, new opportunities are opening up for forward-thinking buyers and investors, especially in a market with a shortage of supply and changing conditions.

At Tirol Real Estate, we not only know the current projects - we also know which locations, property developers and forms of investment currently offer the most potential. Whether you want to move in yourself, invest in an investment property or are looking for a plot of land for a construction project: We support you with regional expertise, market knowledge and foresight.

Interested in current new-build projects in Tyrol?

Contact our team for a no-obligation consultation or take a look at our exclusive residential and investment projects throughout Tyrol - many of which are already in the early marketing phase, perfect for early decision-makers.

^{Source:WKO Tirol "How Tirol builds in 2025"}