“Real estate market is changing”

“The real estate market is changing rapidly”says Mario Zoidl, chairman of the real estate trustees in the Upper Austrian Chamber of Commerce: “New construction works only sluggishly, since many conditions have a negative effect on the creation of property.” The development is going in the direction of rent, and it cannot be ruled out that commercial property developers will increasingly enter this sector. Zoidl breaks a lance: “The landlords and property owners try very hard to take care of the tenants and only partially pass on the rent increases, because vacancies are the enemy of the landlord.” He thinks there is a rent cap for that “wrong way, since the landlords will have to invest a lot, for example in changing the heating system, renovation, window replacement, photovoltaics”.

Land: hoping for relief

Robert Oberleitner, chairman of the non-profit organizations in Upper Austria: “Housing in Upper Austria is still affordable because every third Upper Austrian lives in a non-profit housing building.” The system with the housing subsidy works well, while in other federal states 15 or 16 euros per square meter without heating has to be paid, even with non-profit organizations. A big issue is the high property costs. The Association of Non-Profits is currently raising awareness among the communities that the dedication category social housing has existed since 2021. And: “Commercial property developers are having increasing difficulties. Projects are offered to us because they can no longer or do not want to be implemented.” The pressure on the real estate market is letting up “something after”says Oberleitner.