Gerald Gollenz, chairman of the real estate trustees in the Chamber of Commerce, had already said in June that the new construction market was dead. On Tuesday he became even more drastic at a press conference: “Nothing has changed, on the contrary, the new construction market is more than dead.” It’s about the end for tens of thousands of companies and their employees. His deputies in the trade association, Michael Pisecky and Johannes Wild, put it similarly: “The situation is very dramatic” and “We are hitting the wall.”
The representatives of commercial property developers, brokers and property managers backed this up with figures from the market research company Exploreal: According to this, there are 17,381 freely financed condominiums in the “pipeline” across Austria this year – they are being prepared, built or completed. According to the forecasts, there will be 6,406 in 2026 and 1,793 the year after, which would mean a decline of 90 percent. The number of privately financed rental apartments fell from 7,343 to 2,102 and 1,349.
“The 12,000 companies with 26,000 employees have their backs to the wall,” said Gollenz regarding his industry. Companies have taken precautions in good times, but that is only enough for a while. In addition, there is higher unemployment among the construction companies themselves.
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Image: WKO
Source: Nachrichten
