Lawog completed 298 apartments last year, of which 252 were rental apartments and 46 were condominiums. Given the high land prices and increased construction and financing costs, is housing still affordable in Upper Austria? “Housing is affordable, but not cheap,” said board director Frank Schneider at the state housing cooperative’s annual financial press conference on Wednesday.
Six years ago, Lawog offered new apartments for 7.50 euros rent including operating costs (without heating) per square meter; today, according to Schneider, it is no longer less than 10.50 to 11 euros. Nevertheless, there is no negative development in the rent arrears of Lawog tenants.
The fact that the property sector has collapsed due to costs, interest and the KIM regulation (stricter lending) is shown by the fact that Lawog converted 17 of the condominiums completed in 2023 into rental apartments due to a lack of demand. And the 574 apartments that Lawog is currently building or starting this year are all for rent; ownership is not included. “We have projects in the drawer, but there is currently no market for them,” said board director Christoph Khinast.
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Image: Lawog
Source: Nachrichten
