“On average, it can be seen that a ten percent increase in the market share of non-profit building associations leads to a decrease in unregulated rents of 30 to 40 cents per square meter. For a 70 square meter apartment, this corresponds to a saving of between 250 and 340 euros per year,” said Michael Klien from Wifo during a media interview.
In regions that experienced a stronger increase in apartments from non-profit building associations (GBV), the development of unregulated private rents was noticeably dampened by the non-profit sector. Another finding of the Wifo study is that the GBV brought a significant increase in living quality from the 1960s onwards. A “quality competition between the for-profit and non-profit sectors” has emerged.
- More on the topic: “If the construction industry shakes, the entire location shakes”
Hans Volmary from WU Vienna compared the Austrian real estate market with those in Great Britain and Germany. His conclusion: In recent years, international corporations and financial investors have taken over more and more areas of the social infrastructure. While this advance has been particularly advanced in England, for example, this development has so far been progressing slowly in Austria. The extent of liberalization and privatization in this country is significantly lower than in England and Germany.