Property developer: “The danger is that no one will buy now”

They demand that it should not only benefit the non-profit building associations, but also the privately financed sector.

At the same time, they warn of unintended effects. The government’s announcement that it will abolish fees for land register registration and lien registration is leading to further reluctance to buy. This is in view of the tense situation “dangerous”said Gerald Gollenz, chairman of the real estate and asset trustees in the Austrian Chamber of Commerce.

• Also read: Nehammer: Start the construction offensive before the summer

Gollenz calls on the government to quickly provide clarity regarding the announced abolition of fees. The announcement would now make potential buyers wait. “The danger is that no one will buy at all”said Gollenz at a press conference in Vienna this week.

If there were a standstill for four months, as is the case with VAT-exempt photovoltaic systems, this would be a “Craziness”said industry representative Michael Pisecky. The end of fees should therefore be fixed separately from other measures in the package, ideally in March.

• More on the subject: How the government wants to boost housing construction this year

The chamberlains expressly welcomed the federal government’s response to the crisis in the construction industry. “Thank God this economic stimulus package came five minutes past twelve and not ten minutes past twelve”said Gollenz. However, the measures are only tailored to the non-profit sector. And this alone will not be able to solve the forecast housing shortage.

Projects in the pipeline

The commercial developers have projects in the pipeline and can get started immediately, said Gollenz. But this requires political support, because one is confronted with high land prices, high construction prices and high financing costs while at the same time stricter lending rules – keyword KIM regulation.

• Also read: Housing package amounts to more than two billion euros and leaves questions unanswered

The Chamber of Commerce expects new commercial residential construction to fall by more than 80 percent to only around 4,200 apartments by 2025 compared to 2023. You slowly stand with your back against the wall. Gollenz: “The strongest residential builder in the republic is running out of steam.”

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