I’m currently fixing a 06 GTI which I brought salvage as a cat s. Mine is a frontal though and all panels are bolt on.
I’m not a expert, but whilst I was looking for my project, I had my eye on a rs5 with similar damage to yours. My mate who used to own a body shop, said its possible, different places will either pull it out or cut and replace. The labour cost is high as most of the interior needs to be removed to be able to do the welding, etc.
If it was my car, I would do, but as said, you need the space/time.