Despite the slowing economy, Austrian real estate prices continue to rise sharply. During 2019, the real estate price index in Austria increased by 3.9% year-on-year. Based on data from the Oesterreichische Nationalbank (OeNB) in 2020, despite complications related to covid-19, year-on-year growth in real estate prices accelerated, especially in the second quarter when the index reached 5.2%.
The Covid-19 pandemic is most likely to have a significant impact on the global economy. World GDP fell to 5% in 2020. The unique nature of the crisis means that the recovery degree is still largely unknown, but has potential long-term consequences for our daily lives. To get an idea of what Covid-19 can mean for the real estate market in the Alps, we turn back to the development during the global financial crisis and examine how they differ.
The French resort of La Plagne has been named the most popular winter resort in the world. La Plagne is part of the Paradiski ski area, which offers 425 km of pistes, and has attracted an average of more than 2.5 million tourists a year in recent years.
In a year-on-year comparison, current sales in top resorts across the Alpine countries are growing significantly, reaching up to 40% in some areas. This fulfilled the optimistic predictions for 2017 and 2018.
From the investment point of view, the number of visitors to the Alpine countries is one of the key parameters that need to be considered when evaluating the investment potential of acquiring real estate in the Alps.
The Italian real estate market is in a similar situation as it is in France. In general, the volume of transactions is declining. However, the tendencies in individual sectors of the real estate market differ significantly. According to the Italian Financial Administration, the real estate market fell by 3.6% year on year.