Innsbruck

This Month in Innsbruck (March):

Shopping: Few know that Palmers, the famous Austrian lingerie brand, was founded in Innsbruck. A perfect fit and an elegant cut are what the label is famous for - at affordable prices (41 ‪Maria Theresien Strasse, tel: 0512 587 424‬‎).

Sightseeing: The contrast between the glamour associated with Paris and the city's true colours is the subject of the photographic exhibition Beauties and Beasts by Martin Mlecko (tel: 0512 571 567).

Key areas: Innsbruck is a winter sports paradise, with skiing and snowboarding still possible as late as the end of March. The Stubai glacier promises the area's best conditions, perched at 3,150m high.

Day trips: Catch the train and visit Graz, the capital of the federal state of Styria. Dawdle around the well-preserved city centre, stroll around the idyllic castle mountain and treat yourself to some excellent Austrian pastry dishes.

Innsbruck News & Gossip

Tyrolean Chalets

Ski resorts in France and Switzerland may have cachet and attract the celebrity set, but those who want to ski the slopes, rather than pose on them, head for Austria.

Popular with tourists for its charming villages, family-friendly resorts and lack of over development, Austria provides a winning combination that's enticing visitors to set down permanent roots and investors to snap up buy-to-lets. Property here is also far more affordable than many Alpine areas in France or Switzerland. It's possible to find new and resale apartments within a few kilometres of popular ski resorts such as Zell am See and Flachau costing from €50,000 to €200,000 if you search through local agents.

"Austria is the only major ski destination that has increased its proportion of the ski property market in the past few years," says Giles Gale of specialist agency Savills Alpine Homes. "It's taking market share away from France and Switzerland because it offers better value." One of the reasons Austria has maintained a stable market is that restrictions on second-home ownership are quite tight in order to stop speculation. Capital Gains Tax, for example, can be up to 50% of the sale price if you sell your second home within a few years of buying. Hold onto it for 10 years, though, and there's nothing to pay. Additionally, owners have to make holiday homes available to rent for periods that can be up to 150 days per year, depending on the region. This is because the government doesn't want large numbers of properties standing empty.

Peter and Clare Taylor, from Surrey in the UK, own a luxury four-bedroom chalet in the resort of Hölzern, an hour from Salzburg Airport, and have no problem with the regulations. "We knew about the requirement to rent when we bought," says Peter, "and it makes sense for the property to be in use rather than empty half the year." With rates of €160 to €300 per day, Taylor hopes to make enough back through rentals to cover his annual costs.

Giles Gale is currently selling properties in the little-known resort of Dienten, an hour from Salzburg, costing from €194,000 for a two-bedroom apartment. Jessica Delany, of Investors in Property, says buyers should expect to spend from €200,000 for a two-bedroom apartment in the Salzburg region. She has a selection of properties in the spa resort of Bad Gastein from €184,000, and for those prepared to drive further from the airport, she says there are "some real bargains" to be found.

In the small, family-friendly resort of Hohentauern, two hours from Salzburg, three-bedroom bespoke chalets start from €146,000 and in the resort of Gerlos, a pretty resort halfway between Salzburg and Innsbruck, new apartments are priced from €195,000. One of the most sought-after regions is the Tyrol, in which second-home ownership is heavily restricted. As a result, it's much more expensive, and in popular resorts such as Kitzbühel and Sölden, you should expect to pay in excess of €350,000 for a one-bedroom apartment.

Investors in Property has rare buyto-lets in the stylish resort of Brand, 90 minutes from Innsbruck airport, from €191,000 and luxury apartments in the snow-sure resort of Kühtai from €445,400. Jessica Delaney says, on average, owners could expect 4%-5% net returns on rental, though Giles Gale is more optimistic: "Yields are significantly higher than you could expect in Switzerland or France because you have a more substantial summer rental market in Austria," he says. "You could expect to see 6%-8% if you rent summer and winter, whereas in France you'd see around 4%." Despite this, second-home owners in Austria aren't always buying for the investment, says Jessica. "They simply love the country and enjoy visiting year round."

Innsbruck Trivia

• March: A historical name you will definitely encounter during your stay is that of Andreas Hofer - the famous freedom fighter who liberated Innsbruck from Bavarian rule in 1809.

• February: The Stubai Glacier, just outside of Innsbruck, some 3,200m above sea level, is home to Austria's highest restaurant, Jochdohle.

• January: The Tyrol province's longest ski run - 15km - is located in the resort of Glungezer in Innsbruck.

• Print page
• Email page
• Del.icio.us
• Digg
• Facebook
• Google
• Reddit
• Technorati
• Twitter
• Yahoo!