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Friday, December 9, 2022

The number of building permits fell by almost a third

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Angelica Harwell
Angelica Harwell
I am an author and journalist who has written for 24 Hours World. I specialize in covering the economy and write about topics such as finance, banking, and economic development.
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The construction of 5155 apartments was approved in Upper Austria in the first six months of 2022, according to figures from Statistics Austria. That was 28.7 percent less than in the first half of the previous year. At that time there were 7232 apartments. In previous years, the building permits were higher – there were 5960, 6714 and 6499.

This year’s decline can be attributed to single and two-family houses as well as multi-storey residential buildings (three apartments or more). For the former, the number of building permits in Upper Austria fell by 23 percent in the first half of the year compared to 2021, for the latter by 28.5 percent. There was an even sharper decline in additions, construction and conversion work – by 35.3 percent.

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The slowdown in the construction industry is likely to lead to higher unemployment in the sector. As reported, AMS and the building guild expect that more employees will be sent to stamp in winter this year and that there will be fewer reinstatement commitments than before. Consumers can benefit. While it was previously difficult for many to even get an offer from professionals or construction companies, the situation is now turning. The high construction prices could lose some of their momentum. However, the international raw materials markets and wage agreements also play a role here.

The construction cost index of Statistics Austria for residential and settlement construction in September 2022 was 7.4 percent higher than in the same month of the previous year. It stagnated compared to the previous month.

Source: Nachrichten

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